Tom MacLennan, Iain Fraser and Geoff Rowley, partners at FRP Advisory, appointed as joint administrators to The Dunne Group Limited and five subsidiaries
THREE partners at FRP Advisory, the business advisory firm, have been appointed as joint administrators to The Dunne Group Limited and five subsidiaries of the UK civil engineering and construction business.
FRP’s Tom MacLennan, Iain Fraser and Geoff Rowley were appointed after the business ceased trading, resulting in the immediate loss of 524 of the 540 jobs employed across the group.
Founded in 2001 and headquartered in Bathgate, Scotland, The Dunne Group also operated from sites in Glasgow, Leeds, Dublin and London, providing an extensive range of civil engineering, building, construction, infrastructure, contracting and plant hire services.
The business had grown rapidly in recent years with major contract wins including three high profile projects in London – Newington Butts, 100 Bishopsgate and One Blackfriars. Turnover last year was £74m and forecast this year at £96m.
Tom MacLennan, partner at FRP Advisory and joint administrator, said: “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,” MacLennan said.
The Dunne Group owns a substantial portfolio of specialist equipment and assets including cranes, trucks, lifting equipment, excavators and access platforms. These items will be valued and marketed for sale in due course.