Allenbuild jobs under threat
Around 60 jobs look set to go at Allenbuild North West’s headquarters after its parent firm, Leeds-based Renew Holdings, announced yesterday that it was to withdraw from all but non-specialist construction work in the north of England.
The group said that it would incur exceptional costs of around £3.5m during the second half of 2011 as a result of restructuring and redundancy costs.
In a statement issued to the stock exchange justifying its move yesterday, Renew Holdings said: “The board has concluded that its presence in the non-specialist and discretionary public spending building markets is unable to provide acceptable and sustainable returns at an appropriate balance between risk and opportunity.”
Wigan-based Allenbuild had previously been a North West construction and plant hire group which was listed on the stock exchange, but a demerger led to the creation of Speedy Hire plc as the main listed company and the subsequent sale of the Allenbuild business to YJL, which was the construction arm of Renew Holdings.
Allenbuild became a a general contractor and civil engineering firm, but a great deal of its work in recent years has come from healthcare, education, PFI and other government-led contracts.
Renew Holdings said yesterday that the closure of its construction business will complete by the end of this financial year, save for a £44m Kirklees Waterfront Campus project that is not due to complete until July 2012.
It added that the closure of the general construction business was likely to shrink overall group revenues by around £60m next year, but would not have an impact on profits.
“Going forward, Renew’s specialist building activity will be based in the south,” the company said. Contract selectivity will remain the guiding principle with our focus being on the robust new build social housing, high quality residential and retail markets. Our business in these sectors is well-secured with good forward visibility,” the company said.
