CONSTRUCTION FIRM PUT INTO ADMINISTRATION
ONE of Wales’s leading construction firms, WRW Construction, is being put into administration after saying it had come under “significant financial stress”.
As well as its Llanelli HQ, the family-run and owned business has offices in Cardiff and Bristol. The entire business has ceased to operate.
In a statement the company said: “Despite a significant order book of over £60m to be delivered within the upcoming 12 months, a supportive lender, fantastic staff and prospects, regrettably, owing to a series of events in the last week, including an unfavourable adjudication outcome, the business was put under significant financial stress.”
Carmarthenshire Council has taken action to secure two major development sites under way in the county.
ONE of Wales’s leading construction firms, WRW Construction, is being put into administration after saying it had come under “significant financial stress”.
As well as its Llanelli HQ, the family-run and owned business has offices in Cardiff and Bristol. The entire business has ceased to operate.
In a statement last week the company said: “Despite a significant order book of over £60m to be delivered within the upcoming 12 months, a supportive lender, fantastic staff and prospects, regrettably, owing to a series of events in the last week, including an unfavourable adjudication outcome, the business was put under significant financial stress.
“The directors have worked tirelessly with their advisors and funders to look for solutions for the business to remain viable.
“Unfortunately, it has been regrettably determined that no viable options remain, and administration is the best course of action to preserve value for stakeholders and creditors. As a result of this, the directors are in the process of placing the company into administration.”
Administrators for the business should be appointed next week.
To support its growth plans the firm in 2019 secured a multi-million-pound lending facility from lender ThinCats.
The finance was secured against WRW Construction property and other assets.
Its last audited accounts lodged with Companies House show that in its 2019 financial year the business had a turnover of £64m with a workforce of 143.
WRW Construction has a string of contracts across the UK for public and private sector clients. The business also supports companies and hundreds of jobs in its wider supply chain.
In light of the announcement, Carmarthenshire Council has taken immediate action to secure two major development sites currently under way in Carmarthenshire – the Pendine attractor project and an affordable homes scheme in
Dylan, Llanelli.
Leader of the council Cllr Emlyn Dole said: “This is unfortunate news which will no doubt impact on local employees and sub-contractors.
“WRW Construction has worked with us to develop several major schemes over many years, including schools and homes, and we are sorry to hear of its collapse.
“Our immediate focus has been to secure two major development sites currently under way – the Pendine attractor project and an affordable homes scheme in Dylan, Llanelli.
“We are currently gathering information and providing practical support to assist sub-contractors who are involved in the work at both of these sites.
“As with all major projects, contingency arrangements are in place. As such we are confident that we can resume work to continue the delivery of both of these major projects in the near future, although this will inevitably lead to some delay and extra costs, which will need to be assessed.
“We will provide further updates in due course.”
Reacting to the news, Lee Waters MS said: “I’m desperately sorry to see the end of this family firm that had grown to become one of the major players in Welsh construction.
“I’ve been in touch with the team through the last year and know of the great efforts they’ve made to turn things around during the biggest recession we have ever seen. Sadly it was not possible.
“My thoughts are with the 70 or staff and I’m in touch with the Minister for the Economy to make sure support is available to help them find other work.”
The directors have worked tirelessly with their advisors and funders to look for solutions for the business to remain viable Company statement
Nia Griffith MP added: “This is devastating news about WRW, such a wellknown local firm and I am very concerned for all the staff and their families. “It is traumatic news for them, and I know that Lee will get them whatever support is available from Welsh Government.”
The council has recently launched an Economic Recovery Plan to support local industries in the wake of Covid and Brexit.
It recognises that many businesses across a range of sectors may come into difficulty over the next few years and sets out a range of measures to support them.
Cllr Dole added: “Whilst we understand the circumstances of WRW Construction’s collapse are unrelated to these issues, we will nevertheless implement these measures to mitigate the impact of this situation.
“We have already mobilised business support officers from our economic development team to provide advice and information to those affected.
“We will also accelerate a range of employment opportunities within the authority that may provide suitable alternative employment for people with transferable skills, and will work with our partners to identify and promote other relevant training and job opportunities.
“This is a sad situation for all those involved, but we will do everything we can to support all those affected.”
The council is advising anyone affected by this news and who needs employment advice or support, or anyone who is a contractor involved in the developments at Pendine or Dylan, Llanelli, and who requires information, to contact the council’s economic development team on 01267 234567 or email communitybureau@ carmarthenshire.gov.uk