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Construction company Dawnus ‘in administration’

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Construction company Dawnus ‘in administration’

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Workers leaving the meeting today
Image caption Workers left the site after the meeting

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.

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.

There is also concern for some schools that the firm was building in Powys.

Dawnus 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.

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.

Image caption Swansea’s Kingsway is undergoing a £12m redevelopment

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.

“City council staff and other contractors are currently on site to ensure it remains safe and secure following high winds overnight.

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.

What is Dawnus?

Image caption Dawnus has been contacted repeatedly by the BBC but has not commented

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.

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.

But last September, the company said it employed 700 people and was optimistic about the future.

Powys council has awarded contracts to the company to build three new schools in the local authority area.

Work on an English-medium school in Welshpool is underway and is due to be completed in September, while two other projects are at the planning stage.

Councillor Myfanwy Alexander said on Wednesday: “The county council is aware of media reports commenting on the company’s financial position and is monitoring the situation closely.

“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.”

Source: https://www.bbc.co.uk/news/uk-wales-47567023

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