Brexit and construction downturn put Dawnus out of business

15/03/2019
Chris Ames

Troubled construction firm Dawnus Group has gone into administration.

In a statement, accountancy firm Grant Thornton UK LLP said that three of its staff have been appointed joint administrators to nine entities known as Dawnus Group as of 15 March but not Dawnus’ international operations.

The Dawnus Group operates throughout the UK, employing approximately 700 people across six regional offices and 44 construction sites.

Last month it was announced that the Swansea-based firm had won a place on the £300m South West Wales Regional Civil Engineering Contractors Framework.

Grant Thornton said that ‘due to financial difficulties, stemming primarily from the downturn in the construction industry, the directors resolved to place the Dawnus Group into administration’.

Alistair Wardell, restructuring partner at Grant Thornton UK LLP said: ‘The Dawnus Group has struggled with a wide variety of challenges and despite significant efforts to turn the business around, unfortunately it has not been possible to rescue the Group. As a consequence, the future cash flows has meant that the business was not in a position to continue to operate, including completing existing work in progress.

‘Whilst the financial difficulties of the group were not a consequence of Brexit, there is no doubt that Brexit uncertainty impacted the ability to rescue the business.’

He added: ‘Our priority is to work with management to ensure that any impact on customers, employees and creditors, including subcontractors, is minimised. That process is at its early stages and key employees continue to be retained to support the required procedures.’

Earlier this week it was reported that Dawnus sub-contractors had dumped diggers in the middle of traffic works in Manchester, in protest over alleged non-payment.

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