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Construction company Dawnus 'in administration' | Construction company Dawnus 'in administration' |
(about 1 hour 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. |
Three school building projects in Powys could also be delayed, including one which is scheduled for completion in September. | Three school building projects in Powys could also be delayed, 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. | 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. |
The boss of one sub-contracting firm, who did not want to be named, said: "We got wind that there was problems a few weeks ago and decided to remove some equipment on site as a precautionary measure. | The boss of one sub-contracting firm, who did not want to be named, said: "We got wind that there was problems a few weeks ago and decided to remove some equipment on site as a precautionary measure. |
"We are still out of pocket - but thankfully not a significant amount. | "We are still out of pocket - but thankfully not a significant amount. |
"I think we might have got off lightly compared with what I've heard about other firms." | "I think we might have got off lightly compared with what I've heard about other firms." |
On Tuesday, diggers were abandoned on the £15m Manchester-Salford Inner Relief Route improvement scheme, which is upgrading six major junctions along Regent Road. | On Tuesday, diggers were abandoned on the £15m Manchester-Salford Inner Relief Route improvement scheme, which is upgrading six major junctions along Regent Road. |
It caused widespread disruption, with the equipment blocking the key route. Workers claimed they had not been paid by Dawnus. | It caused widespread disruption, with the equipment blocking the key route. Workers claimed they had not been paid by Dawnus. |
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. |
Who are Dawnus? | Who are 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. |
The most recent company accounts show the company had a turnover of £170m in 2017, but 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, but it also posted a pre-tax loss of £1.35m. |
However last September, the company said it employed 700 people and was optimistic about the future. | However last September, the company said it employed 700 people and was optimistic about the future. |
Among its past projects across the UK are the Great Western Air Ambulance Charity and National Police Air Service Air Operations in South Gloucestershire, a creative industries centre at Kingston College in London, and South Wokingham Secondary School in Berkshire. | Among its past projects across the UK are the Great Western Air Ambulance Charity and National Police Air Service Air Operations in South Gloucestershire, a creative industries centre at Kingston College in London, and South Wokingham Secondary School in Berkshire. |
Dawnus has previously operated in west Africa, and worked on projects during the Ebola crisis. | Dawnus has previously operated in west Africa, and worked on projects during the Ebola crisis. |
In August, during a UK trade mission to South Africa attended by Prime Minister Theresa May, Dawnus was unveiled as part of a consortium targeting oversea aid contracts. | In August, during a UK trade mission to South Africa attended by Prime Minister Theresa May, Dawnus was unveiled as part of a consortium targeting oversea aid contracts. |
The company told BBC Wales in September that they felt optimistic about life after Brexit because of the opportunities for overseas work. | |
In Powys, Dawnus 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. | In Powys, Dawnus 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. | One of the primary schools is scheduled for completion in September while the other two projects have not yet started work. |
"We will be working to mitigate any potential issues which arise," said Councillor Myfanwy Alexander, cabinet member for learning and Welsh language. | |
Swansea council said work on the Kingsway site had come to a sudden stop on Wednesday and it was taking control of the site. | |
"We have already taken a number of steps and we are considering our options," a spokesman added. | |
It said it was working through issues relating to appointing a new contractor "as a matter of urgency" and was in discussion with the supply chain. | |
The council said Dawnus had also recently begun work as the main contractor for its new pupil referral unit at Cockett, and it was also taking control of that site. | |
"We are determined that these two important schemes are completed as planned…we are taking all the necessary steps to resolve these issues as quickly as possible." | |
Rhondda Cynon Taf council said Dawnus had the contract for the £1.5m Pontrhondda Bridge replacement in Llwynypia, due for completion this summer. | Rhondda Cynon Taf council said Dawnus had the contract for the £1.5m Pontrhondda Bridge replacement in Llwynypia, due for completion this summer. |
Wales' First Minister Mark Drakeford described Dawnus as a "very important company". | Wales' First Minister Mark Drakeford described Dawnus as a "very important company". |
"It's obviously a worrying time for all those people who work for the company, but also there are projects across Wales the company is involved in," he said. | "It's obviously a worrying time for all those people who work for the company, but also there are projects across Wales the company is involved in," he said. |
The Welsh Government would do whatever it could to assist those affected, he added. | The Welsh Government would do whatever it could to assist those affected, he added. |
David Price, finance editor of Construction News, said there had been rumours Dawnus was facing trouble after reports of losses. | 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. | "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. | The company also reported a loss of £1.4m last year, according to Mr Price. |
Analysis by BBC Wales business correspondent Brian Meechan | |
Dawnus has grown from a small Welsh firm to a big name in the construction industry. | |
It's one of just over 50 "anchor companies" identified by the Welsh Government as having global reach and a headquarters in Wales. | |
Dawnus was seen as a responsible employer with a good reputation for delivery. | |
Welsh construction firm Cuddy also went into administration recently, but the impact of the collapse of Dawnus has caused a greater shock throughout the industry. | |
One of the issues with the Welsh economy is the lack of small firms that steadily grow to become large companies. | |
And as Brexit looms companies are being encouraged to look to new markets, especially outside of Europe. | |
Dawnus was a good example of a company that did both these things. | |
However it appears the firm has struggled to recover from past problems on some of its projects in Africa. | |
Some in the industry are concerned other small businesses may now see it as a warning about expansion, rather than the success story it once was. | |
Construction is incredibly competitive and margins are tight, and something going wrong on just one or two projects can cause enormous damage to a business. | |
On top of this budgets are being squeezed in the public sector and the private sector appears to be holding back on some investment due to the current uncertainty around Brexit. | |
Projects like the M4 and Wylfa, which Dawnus would certainly have hoped to work on, are on hold. | |
Whenever one of these large companies goes into administration the concern immediately turns to the suppliers, contractors and workers who will be affected by it. | |
It may take some time before we know what the full impact will be. |