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Dawnus

From Alfawiki
Adapted from the English Wikipedia article Dawnus, available under CC BY-SA 4.0Updated 30 November 202510 sources
Dawnus
Company typePrivate
IndustryConstruction
Founded2001
Defunct2019
FateEntered administration
Headquarters
Swansea
,
Wales, United Kingdom
Area served
United Kingdom, West Africa, International
ProductsConstruction services
Number of employees
Approximately 1,250 (2014) (2014)

Dawnus was a UK-based construction firm established in 2001, with its main office located in Swansea, Wales. The company experienced swift growth, with revenue rising from £2 million in 2002 to a peak of £176 million by 2012. After changes in the board, turnover settled between £60 and £70 million before experiencing renewed expansion. Dawnus earned recognition as the South Wales Evening Post Business of the Year and appeared in the Sunday Times Profit Track 100 list.

By 2014, almost half of Dawnus’s projects were international, carried out through its subsidiary Dawnus International Ltd. It maintained a significant footprint in West Africa, primarily supporting mining infrastructure development. At that time, the workforce included 250 expatriates alongside 1,000 local employees based in Sierra Leone. The outbreak of Ebola in 2014 resulted in losses estimated at around £15 million.

In 2017, Dawnus posted losses amounting to £1.4 million and had no cash reserves due to insolvent clients, legal expenses, and a dispute related to a delayed hotel contract worth £7 million in Poole, Dorset. The delay was caused by striking a high-voltage cable during piling work, which was attributed to inaccurate utility drawings. Toward the end of 2018, the company repurchased and canceled 12,000 shares owned by directors—a transaction later investigated following the company’s insolvency. Efforts to attract investment or sell the business drew interest from several parties but ultimately did not yield any viable proposals.

Among its significant projects were the £10 million Kingston College Creative Industries Centre (2015), refurbishment of Rhyl’s A548 Foryd Bridge (2015), and the construction of Tower Road Bridge at Alfred Dock in Birkenhead (2018).

Collapse

Dawnus entered administration in March 2019 after suffering losses related to a flood defence contract in Cardiff and a Welsh government school construction scheme.[1] Work halted on 12 March, leading to disruptions such as road blockages in Manchester caused by abandoned machinery.[2] Additional projects suspended included three schools located in Powys, Wales.[3]

At the time of its collapse, Dawnus had approximately £70 million in unsecured liabilities, including £40.4 million owed to trade creditors, £5 million to staff, and £3 million to Her Majesty's Revenue and Customs. Secured debts totaled £10 million, comprising £1.5 million owed to the Welsh government and £1.3 million to Lloyds Bank.[4] The Welsh Government’s debt pertained to an outstanding capital amount on a £3.5 million loan extended in 2016 intended to support cash flow.[5]

Administrators from Grant Thornton appraised Dawnus’s assets at roughly £16 million with an additional £21 million owed by debtors.[4] By May 2020, secured creditors had received payments; however, unsecured creditors were not expected to recover any funds.[6] Some unsecured creditors attempted recovery by unlawfully seizing Dawnus equipment, disabling tracking devices, and causing traffic disturbances.[7] The company’s failure resulted in the loss of approximately 700 jobs.[6] Welsh Government Minister Ken Skates indicated that about 455 suppliers within Wales were affected, with roughly £6 million owed across its supply chain.[8]

The collapse of Dawnus drew comparisons with the fall of Carillion plc in 2018 and led to appeals for the Welsh government to expand the use of project bank account provisions below the current threshold of £2 million, aiming to provide better protection for smaller businesses within supply chains.[9][10]

References

  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named rise
  2. ↑ Deacon, Thomas; Farell-Roig, Estel (14 March 2019). "City gridlocked as construction firm Dawnus 'fails to pay workers'". WalesOnline. Retrieved 21 February 2022.
  3. ↑ Hearn, Elgan (7 October 2020). "Collapse of firm was 'blessing in disguise' over school redevelopment". Shropshire Star. Retrieved 21 February 2022.
  4. ↑ 4.0 4.1 Cite error: Invalid <ref> tag; no text was provided for refs named post
  5. ↑ Clements, Laura (4 August 2019). "The millions of Welsh taxpayers' cash given to firms that go bust". WalesOnline. Retrieved 21 February 2022.
  6. ↑ 6.0 6.1 Cite error: Invalid <ref> tag; no text was provided for refs named price
  7. ↑ Ing, Will (21 May 2019). "Collapsed Dawnus owed £50m after more than 70 firms turned down chance to rescue stricken builder". Building. Retrieved 21 February 2022.
  8. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named green
  9. ↑ Welsh Government, Written Statement - Project Bank Accounts, published 6 December 2017, accessed 31 March 2023
  10. ↑ "Dawnus collapse: Plea to protect smaller firms in supply chain". BBC News. 21 April 2019. Retrieved 21 February 2022.
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