524 jobs lost at concrete specialist after multiple sources say firm sent workers home today
Concrete specialist Dunne Group has fallen into administration, with the loss of 524 jobs.
Workers at the firm had been sent home from sites across the UK today, prompting union Ucatt to raise concerns about the firm’s financial situation.
FRP Advisory has now confirmed it has been appointed administrator. In a statement, FRP partner Tom MacLennan 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. A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets.
“Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”
A Ucatt spokesperson said earlier “we’ve had people sent home” and claimed the multiple site shutdown came “without warning” as far as they knew. The union has advised its members and affected workers to remain on site and contact their local Ucatt office.
Two subcontractors on luxury residential tower One Blackfriars (pictured) on London’s South Bank - where Dunne is also working as a subcontractor - told Building outside the site today that Dunne Group workers on the job “didn’t come in today”, but the work was otherwise unaffected.
Building has tried to contact Dunne Group, but calls today (Tuesday) have so far gone unanswered.
Dunne Group’s latest accounts published on Companies House show a turnover of £54.8m for the year to October 2014, up almost half on the previous year’s turnover of £37.1m. The Scottish-based company made a pre-tax profit of £756,073 for 2014, after a loss of £475,878 the previous year. The firm at the time recorded 314 employees at its year-end.
A document filed at Companies House reports Dunne Group’s finance director Andrew Love resigned as a director of the company on 24 June. He had been finance director for less than a year.
Dunne Group is on a number of Brookfield Multiplex projects including 100 Bishopsgate office tower and One Blackfriars. It has also been doing superstructure concrete work at £100m private-rental project Highpoint in Elephant & Castle, by Mace.
Brookfield Multiplex and Mace declined to comment.