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Construction company Dawnus 'in administration' | Construction company Dawnus 'in administration' |
(32 minutes later) | |
Construction company Dawnus has gone into administration, according to subcontractors. | Construction company Dawnus has gone into administration, according to subcontractors. |
People who work for the Swansea-based firm were called to a meeting on Thursday morning. | People who work for the Swansea-based firm were called to a meeting on Thursday morning. |
But they were sent home afterwards, and could be seen removing tools from the site. | But they were sent home afterwards, and could be seen removing tools from the site. |
It comes after work on the £12m Kingsway redevelopment in Swansea and a road project in Manchester were both halted. | It comes after work on the £12m Kingsway redevelopment in Swansea and a road project in Manchester were both halted. |
Powys council said three school building projects could be delayed as a result, including one which is scheduled for completion in September. | |
Dawnus - which runs construction projects across the UK and overseas - has been contacted repeatedly by the BBC but has not commented. | |
However, people leaving the Swansea meeting said they had been told the firm had gone into administration. | However, people leaving the Swansea meeting said they had been told the firm had gone into administration. |
On Tuesday, the road project in Manchester was stopped, with diggers abandoned as workers claimed they had not been paid by Dawnus Ltd. | On Tuesday, the road project in Manchester was stopped, with diggers abandoned as workers claimed they had not been paid by Dawnus Ltd. |
The following day, workers in Swansea were sent home by their bosses. | The following day, workers in Swansea were sent home by their bosses. |
A spokesperson for the Manchester-Salford Inner Relief Road scheme, which is being carried out jointly by Manchester and Salford city councils, said it was seeking "urgent clarification" about the status of Dawnus. | A spokesperson for the Manchester-Salford Inner Relief Road scheme, which is being carried out jointly by Manchester and Salford city councils, said it was seeking "urgent clarification" about the status of Dawnus. |
""We are currently pursuing all other options to ensure the project can continue as quickly as possible," they added. | ""We are currently pursuing all other options to ensure the project can continue as quickly as possible," they added. |
"City council staff and other contractors are currently on site to ensure it remains safe and secure following high winds overnight. | "City council staff and other contractors are currently on site to ensure it remains safe and secure following high winds overnight. |
What is Dawnus? | What is Dawnus? |
Dawnus has its headquarters in Swansea but runs construction projects across the UK and overseas. | Dawnus has its headquarters in Swansea but runs construction projects across the UK and overseas. |
Among Dawnus's other projects are the £5.6m Roath flood risk management scheme in Cardiff, Bont Evans tree works and stabilisation in Machynlleth, Powys, and St Asaph flood defence works, Denbighshire. | Among Dawnus's other projects are the £5.6m Roath flood risk management scheme in Cardiff, Bont Evans tree works and stabilisation in Machynlleth, Powys, and St Asaph flood defence works, Denbighshire. |
Dawnus has previously operated in Liberia and Senegal and won awards for its work at Tata steelworks in Port Talbot and Monmouthshire Housing Association. | Dawnus has previously operated in Liberia and Senegal and won awards for its work at Tata steelworks in Port Talbot and Monmouthshire Housing Association. |
The most recent company accounts show the company had a turnover of £170m in 2017, however it also posted a pre-tax loss of £1.35m. | The most recent company accounts show the company had a turnover of £170m in 2017, however it also posted a pre-tax loss of £1.35m. |
But last September, the company said it employed 700 people and was optimistic about the future. | But last September, the company said it employed 700 people and was optimistic about the future. |
In Powys, Dawnus Construction has contracts to build three new schools - two new primary schools in Welshpool, and a replacement for the county's first all-through school Ysgol Bro Hyddgen in Machynlleth. | |
One of the primary schools is scheduled for completion in September while the other two projects have not yet started work. | |
"The council has not received any formal contact from the company. Dawnus is a key partner in a number of our school modernisations projects and we will be working to mitigate any potential issues which arise," said Councillor Myfanwy Alexander, cabinet member for learning and Welsh language. | |
Meanwhile, businesses in Swansea said they were concerned about having a building site remaining in the city centre. | |
Mark Hanford, co-owner of of Boosh Salon, said it was "disappointing" that there will be "more disruption" to the area. | |
"Any business in Swansea has already taken a hit," he told BBC Radio Wales. | |
Mr Hanford added that although he has contacted Swansea council, there had not been given any reassurances about the future. | |
David Price, finance editor of Construction News, said there had been rumours Dawnus was facing trouble after reports of losses. | |
"In 2014-2015 they made significant losses of around £13m, connected to work in Africa, and they have struggled to recover from that since then," he said. | |
The company also reported a loss of £1.4m last year, according to Mr Price. |