Borderline Theatre, a company denied public money in the last two funding rounds by the Scottish Arts Council has received three nominations in this year's Critics' Awards for Theatre in Scotland.

The Ayr-based company is in the running for the best ensemble and in the best new play categories in the CATS awards, for its production of The Wall, by Daniel Jackson. The touching coming-of-age comedy drew an enthusiastic response from the notoriously difficult teenage audience when it toured the country, and won its author a one-year residency at London's Royal Court. The actress Sally Reid is nominated as best female for her lead role as Norma.

The nominations come despite Borderline's recent bid for “flexible funds” being dismissed by the arts council, which described the company as “relatively weak” in comparison with other arts groups.

Eddie Jackson of Borderline said that he was delighted to receive the nominations on behalf of the company, but that recognition was bittersweet.

“The tour was an outstanding success, which attracted a large number of audiences and a high percentage of young people and first-time attenders. But this production was rejected for project funding in 2007 and Borderline was recently rejected by the SAC for Flexible Funding so we are gratified by this vindication of our artistic programme,” Mr Jackson added.

While Borderline's future remains uncertain, the CATS shortlist represents a triumph for Dundee Rep, the only permanent ensemble theatre company in Scotland, which has picked up 13 nominations covering nine of the ten award categories. Its popular production of Sunshine on Leith, a musical based on the songs of The Proclaimers is up against Borderline in the best ensemble category, and is also nominated in the best production, best use of music and sound, best technical and best director categories.

The other Dundee productions to be niominated are last summer's hit, Samuel Beckett's Happy Days; its pantomime, Jack and the Beanstalk; and Dominic Hill's highly acclaimed production of Henrik Ibsen's Peer Gynt, based on Colin Teevan's recent translation.

The deep impression which the National Theatre of Scotland has made on the performing arts is reflected in 15 nominations for six productions.

The shortlist for best new play features Educating Agnes, Liz Lochhead's third translation of a work by Moliere, the 17th-century French playwright and David Greig's Being Norwegian, presented as part of the “A Play, A Pie and Pint” programme at Glasgow's Oran Mor.

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