Dawn Group to close construction division
February 23 2012
Citing a “unsustainable” profit margins in the general construction sector Dawn aim to close the division by May 2013 once all existing contracts and accounts have been honoured.
This includes work at Musselburgh Primary care Centre, East Lothian, the Eastgate office development, Bridgeton.
Speaking to The Herald Dawn chairman Alan MacDonald said: “Currently, all areas of the business are profitable and turnover is around £105m in the year to January 31, 2012.
“However, the board has taken a strategic decision to carry out a planned and orderly closure of our construction division, due to increasingly challenging market conditions, where margins are unsustainable.”
MacDonald reached the “regrettable” decision after concluding that the main contractor market was likely to deteriorate further over the next five years.
Just last month Dawn Construction celebrated the completion of phase 1 works at Glasgow's Collegelands development.
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