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Thu June 27 2019

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Dawnus administrators cite Brexit

18 Mar Administrators for Welsh construction group Dawnus say that while Brexit did not directly cause the business to fail, it made it harder to save.

Alistair Wardell, Matthew Richards and Philip Stephenson of Grant Thornton UK LLP were appointed joint administrators of the UK operations of Dawnus Group on Friday 15th March 2019.

Their appointment covers Dawnus Group Ltd, Dawnus Construction Holdings Ltd, Dawnus Developments Ltd, Dawnus Southern Ltd, Churchfield Homes Ltd, Dawnus Ltd, Quantum Geotechnical Ltd, Ashbridge Construction Ltd and Legsun Ltd.

It does not extend over the international operations Dawnus International Ltd, Dawnus Sierra Leone Ltd or Dawnus Liberia Ltd.

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

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The directors decided to call in the administrators after running into financial difficulties stemming primarily from a downturn in the construction industry, they said.

Grant Thornton restructuring partner Alistair Wardell 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.”

Mr Wardell 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.”

MPU

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