£74m-turnover engineering business goes into administration
A £74M CIVIL engineering business has collapsed with the loss of 524 jobs across its UK operations.
Scotland-based business The Dunne Group, which has sites in Leeds, Glasgow, Dublin and London, called in administrators from FRP Advisory yesterday as a result of major losses on contracts the lack of flexibility in funding needed to keep up with growth.
Tom MacLennan, Iain Fraser and Geoff Rowley, partners at FRP Advisory, the business advisory firm, have been appointed as joint administrators to The Dunne Group Limited and five subsidiaries.
With immediate effect the business ceased trading resulting in the loss of 524 of 540 jobs, with the remaining 16 retained to assist with the closure.
13 jobs in Leeds were lost, with the bulk of the losses in London (311) and Scotland (200).
The Dunne Group had worked on high profile London projects including Newington Butts, Newington Butts, 100 Bishopsgate and One Blackfriars. It was predicted to turn over at £96m this year.
Tom MacLennan, partner at FRP Advisory and joint administrator, said: “This is a sad loss for the construction and building industry.
“The business faced substantial trading losses on some contracts, leading to severe cash flow pressures. Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.
“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.
“Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”
Dunne Group was founded in 2001. The 5 subsidiaries are: Dunne Building and Civil Engineering Ltd; Dunne Developments Ltd; CLR Plant Hire Ltd; Dunne Concrete Flooring Ltd and Conforce Ltd.
