Dawnus Southern Limited (07597648): administration
- Status
- Administration ended
- Administration began
- 2020-05-11
- Administrators
- Alistair Gareth Wardell, Philip Stephenson
- Administrators' firm
- Grant Thornton
- Incorporated
- 2011-04-08
- Location
- Manchester
- Industry
- 42990 Construction of other civil engineering projects n.e.c.
Why it went into administration
- Parent or group failure
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Sustained trading losses
- Creditor pressure / legal action
From the administrators' statement
Grant Thornton UK LLP (the Firm) was first consulted by the Group in December 2017 to assist with assessing options available for meeting forecast funding requirements. At that point, the Group was facing a cash shortfall driven principally by difficulties encountered in the delivery of specific UK contracts.
Following this, the Firm was engaged to assist with raising additional finance. In March 2018, the Group secured a £7 million funding injection provided jointly by HSBC Bank Plc (HSBC) and the Welsh Government (WG). The proposed repayment of this new funding was underpinned by a strategic plan designed to unwind the build-up of the historical contract work in progress (WIP) and to refinance ar sell certain assets.
The Group realised c£7 million by refinancing or selling assets, with the recovery of historical WIP ultimately proving more challenging than expected. The Group repaid c£4 million, split equally between HSBC and WG, with HSBC and WG allowing c£3 million to be reinvested into the Group to further ease cash flow pressures.
Administrators' statement of proposals (2019-05-16) · Companies House register