View source for Dawnus

{{short description|British construction company}}
{{Infobox company
| name  = Dawnus
| logo  = Dawnus logo.jpeg
| type          =
| caption        =
| fate          = Placed into administration
| successor     =
| foundation    = 2001
| defunct       = March 2019
| location      = Swansea, Wales
| industry      = [[Construction]]
| key_people    =
| products      =
| num_employees = 700 (2019)
| parent        =
| subsid        =
}}
'''Dawnus''' was a British construction company. Established in 2001 the company grew rapidly in the early 2000s but collapsed into administration in 2019.  The company had operations in the United Kingdom and West Africa.
== History ==
[[File:Tower Road Bridge 6.jpg|thumb|Tower Road Bridge]]
Dawnus was founded as a contractor in 2001 and had its headquarters at [[Swansea]], Wales.<ref name=rise/><ref>{{cite news |last1=Barry |first1=Sion |last2=Deacon |first2=Thomas |last3=Bannon |first3=Christie |last4=Farell-Roig |first4=Estel |title=Dawnus construction firm 'going into administration' |url=https://www.walesonline.co.uk/news/wales-news/dawnus-manchester-swansea-construction-administration-15971685 |access-date=21 February 2022 |work=WalesOnline |date=19 March 2019 |language=en}}</ref> The company name is [[Welsh language|Welsh]] for "gifted".<ref>{{cite book |last1=King |first1=Gareth |title=Modern Welsh: A Comprehensive Grammar |date=27 June 2005 |publisher=Routledge |isbn=978-1-134-87230-5 |page=88 |url=https://books.google.com/books?id=Dmmb-uA736wC |language=en}}</ref> Its turnover grew rapidly, reaching £2 million in 2002, £8 million in 2003, £16.5 million in 2004, £31 million in 2005, £43 million in 2006 and £64 million in 2007. Afterwards turnover stabilised at around £60-70 million. Changes in its board of directors led to further growth with the company achieving a turnover of £135 million in 2011, peaking at £176 million in 2012. During this period the company was named the ''[[South Wales Evening Post]]'' Business of the Year and appeared in the ''[[Sunday Times]]'' Profit Track 100. In 2014 the company stated that almost half of its work was carried out overseas, through its subsidiary Dawnus International Ltd.  It had a particularly large presence in West Africa providing infrastructure for mining operations; at this point it employed 250 expatriates and 1,000 locals in Sierra Leone.  These works were affected by the [[2014 Ebola outbreak]], which resulted in losses of around £15 million.<ref name=rise>{{cite news |last1=Deacon |first1=Thomas |title=The rise and fall of Dawnus: How a multi-million pound company collapsed |url=https://www.walesonline.co.uk/news/wales-news/dawnus-swansea-construction-kingsway-manchester-15975569 |access-date=26 November 2021 |work=WalesOnline |date=14 March 2019 |language=en}}</ref>
In 2017 Dawnus reported losses on £1.4 million in its annual accounts and had no cash on hand.  This reflected losses due to insolvent clients, legal costs and a dispute over a £7 million hotel contract in [[Poole]], Dorset.  Dawnus had incurred a 30-week delay in that contract when a high-voltage power cable was struck during piling works due to incorrect utilities drawings.<ref name=rise/> In November 2018 the company bought back and cancelled 12,000 shares owned by its directors, a move that was investigated following the company's collapse. In December 2018 Dawnus sought fresh investment or a sale of the business.  The company received interest from 23 potential investors and 52 buyers but only two of these made offers, one withdrawing soon afterwards and the remaining party withdrawing after carrying out [[due diligence]].<ref name=price/>
Projects built by Dawnus include the £10 million [[South Thames Colleges Group|Kingston College]] Creative Industries Centre (2015), refurbishment of the A548 Foryd Bridge in [[Rhyl]] (2015) and construction of the Tower Road Bridge at [[Alfred Dock]] in [[Birkenhead]] (2018).<ref>{{cite news |title=Dawnus Kingston project Tops Out |url=https://universitybusiness.co.uk/facilities/dawnus_kingston_project_tops_out/ |access-date=21 February 2022 |work=University Business |date=22 October 2014 |archive-date=21 February 2022 |archive-url=https://web.archive.org/web/20220221120013/https://universitybusiness.co.uk/facilities/dawnus_kingston_project_tops_out/ |url-status=dead }}</ref><ref>{{cite news |last1=Williams |first1=Kelly |title=Rhyl's Foryd Bridge reopens ahead of schedule as traffic misery almost comes to an end |url=https://www.dailypost.co.uk/news/north-wales-news/rhyls-foryd-bridge-reopens-ahead-8853640 |access-date=21 February 2022 |work=North Wales Live |date=16 March 2015 |language=en}}</ref><ref>{{cite news |last1=Manning |first1=Craig |title=Birkenhead's new Tower Road bridge is floated into position |url=https://www.wirralglobe.co.uk/news/16177969.birkenheads-new-tower-road-bridge-floated-position/ |access-date=21 February 2022 |work=Wirral Globe |date=23 April 2018 |language=en}}</ref>
== Collapse ==
Following further losses from a flood defence contract in [[Cardiff]] and in a Welsh government schools construction programme, Dawnus collapsed into [[Administration in United Kingdom law|administration]] in March 2019.<ref name=rise/>  Works immediately ceased on their projects from 12 March, which led to some traffic issues such as a roads scheme in Manchester where four excavators and a lorry were left blocking the highway.<ref>{{cite news |last1=Deacon |first1=Thomas |last2=Farell-Roig |first2=Estel |title=City gridlocked as construction firm Dawnus 'fails to pay workers' |url=https://www.walesonline.co.uk/news/wales-news/dawnus-manchester-swansea-15966529 |access-date=21 February 2022 |work=WalesOnline |date=14 March 2019 |language=en}}</ref><ref name=rise/>  Other projects abandoned included three schools in [[Powys]], Wales.<ref>{{cite news |last1=Hearn |first1=Elgan |title=Collapse of firm was 'blessing in disguise' over school redevelopment |url=https://www.shropshirestar.com/news/local-hubs/mid-wales/2020/10/07/collapse-of-firm-was-blessing-in-disguise/ |access-date=21 February 2022 |work=Shropshire Star |date=7 October 2020 |language=en}}</ref>
At the time of its collapse Dawnus owed around £70 million in unsecured debt, including £40.4 million to trade creditors, £5 million to employees and £3 million to [[Her Majesty's Revenue and Customs]]. A further £10 million was owed to secured creditors including around £1.5 million to the Welsh government and £1.3 million to [[Lloyds Bank]].<ref name=post>{{cite news |last1=Hughes |first1=Owen |title=The shocking debts left by Dawnus group revealed in special report |url=https://www.dailypost.co.uk/business/business-news/shocking-debts-left-dawnus-group-16307879 |access-date=21 February 2022 |work=North Wales Live |date=21 May 2019 |language=en}}</ref> The Welsh Government claim stemmed from the outstanding capital on a £3.5 million loan it had made in 2016 to assist the company with cashflow problems.<ref>{{cite news |last1=Clements |first1=Laura |title=The millions of Welsh taxpayers' cash given to firms that go bust |url=https://www.walesonline.co.uk/news/wales-news/millions-money-dished-out-wales-16687262 |access-date=21 February 2022 |work=WalesOnline |date=4 August 2019 |language=en}}</ref>
The administrators, [[Grant Thornton]], determined that Dawnus had around £16 million in assets at the time of its collapse and a further £21 million owed to them by debtors.<ref name=post/>  While payments were made to the secured creditors by May 2020 the administrators did not anticipate being able to make any payments to unsecured creditors.<ref name=price>{{cite news |last1=Price |first1=David |title=Dawnus bosses' share dealings under investigation |url=https://www.constructionnews.co.uk/financial/administrations/dawnus-bosses-share-dealings-under-investigation-01-05-2020/ |access-date=21 February 2022 |work=Construction News |date=1 May 2020 |language=en}}</ref> Some unsecured creditors recouped money by stealing equipment belonging to Dawnus, removing trackers and disrupting traffic in the process.<ref>{{cite news |last1=Ing |first1=Will |title=Collapsed Dawnus owed £50m after more than 70 firms turned down chance to rescue stricken builder |url=https://www.building.co.uk/news/collapsed-dawnus-owed-50m-after-more-than-70-firms-turned-down-chance-to-rescue-stricken-builder/5099604.article |access-date=21 February 2022 |work=Building |date=21 May 2019 |language=en}}</ref> The collapse of Dawnus led to the loss of 700 jobs.<ref name=price/> [[Ken Skates]], the Welsh Government's Minister for Economy, Transport and North Wales, stated that about 455 Welsh suppliers had been affected by the company's collapse and that around £6m was owed to businesses in its [[supply chain]].<ref name=green>Green, W., [https://www.cips.org/supply-management/analysis/2019/april/fall-of-welsh-carillion/ Fall of 'Welsh Carillion'], ''Supply Management'' magazine, April 2019, page 7, accessed 31 March 2023</ref> The collapse, which has been compared with the collapse of construction business [[Carillion plc]] in 2018,<ref name=green /> led to calls for the Welsh government to extend its use of [[project bank account]]s (whereby funds paid by the client are ringfenced and not given directly to the main contractor) to projects below the £2 million threshold adopted in 2018.<ref>Welsh Government, [https://www.gov.wales/written-statement-project-bank-accounts Written Statement - Project Bank Accounts], published 6 December 2017, accessed 31 March 2023</ref><ref>{{cite news |title=Dawnus collapse: Plea to protect smaller firms in supply chain |url=https://www.bbc.co.uk/news/uk-wales-47977226 |access-date=21 February 2022 |work=BBC News |date=21 April 2019}}</ref>
== References ==
{{reflist}}
{{Construction industry in the United Kingdom}}
[[Category:Construction and civil engineering companies established in 2001]]
[[Category:Construction and civil engineering companies disestablished in 2019]]
[[Category:Companies based in Swansea]]
[[Category:British companies established in 2001]]
[[Category:British companies disestablished in 2019]]
[[Category:Companies that have entered administration in the United Kingdom]]