Keltbray Group acquires Dunne Group assets
ENGINEERING firm Keltbray Group has acquired some of the assets of the collapsed construction business Dunne Group, which fell into administration on July 18.
The collapse of the Bathgate business led to the immediate loss of 524 jobs, however administrators FRP Advisory said that more than 400 former Dunne employees had found new work.
A spokeswoman for Keltbray could not yet confirm the number of jobs that would be saved as a result of the deal.
In a prepared statement, the company said: “Keltbray Group has acquired some of the assets of Dunne Group from the administrators after Dunne Group went into administration in July.”
This purchase includes Dunne’s yard and head office in Bathgate in, as well as plant used for the construction of reinforced concrete structures.
“Keltbray sees this as an opportunity to broaden its capability and services portfolio, widen its geographical reach and to respond to market demands,” the company added.
It is thought that the former yard and head office of the Bathgate firm is included in the deal.
Tom MacLennan, partner at FRP Advisory and joint administrator to Dunne Group, commented: “We are delighted to have agreed a deal with Keltbray Group, and wish the company every success with their future plans.
“We have been delighted with the response of the contracting industry to the administration of the Dunne Group, and estimate that since our appointment over 400 former staff have now found new employment.”
Dunne Group was wholly owned by Gordon Dunne, who founded the business in 2001 as a concrete specialist. The business later moved into design and construction, and also launched a plant hire division called CLR.
Dunne Group's turnover last year was £74 million and was forecast to reach £96m this year before running into cash flow issues.
According to FRP, the business’s rapid expansion led to pressure on working capital and a requirement for significant additional funding was not available, forcing FRP to cease trading with immediate effect.
In its most recent accounts, for the year to October 31 Keltbray Group grew revenue by 25 per cent to £270m, with operating profit before interest of £11.6m.
The company was formed in 1976 and employs more than 1,000 people. It has worked on projects including The Shard and the development of Battersea Power Station.