Construction group suffers £9m loss following Ebola outbreak

Construction group suffers £9m loss following Ebola outbreak



A UK construction group which includes subsidiary civil engineering and building companies has reported a £9m loss before tax for the year ending 31st December 2015 following the Ebola outbreak in west Africa.


While the board is satisfied with the UK performance, Dawnus Group Limited, whose subsidiary company Dawnus International Limited has rail and ore mining projects in Sierra Leone, claimed that the company’s performance had been adversely impacted by the Ebola outbreak that began in March 2014.

In February 2016, 44 employees of the firm’s subsidiary Dawnus International were awarded medals by the UK government for helping to fight the spread of Ebola in Sierra Leone.

The team was involved in a number of anti-Ebola initiatives, including participating in awareness campaigns and providing both communications and hygiene equipment.

Dawnus also constructed two emergency treatment centres that together provided over 200 beds for Ebola patients.

The Ebola outbreak – estimated to have killed 11,325 people across countries including Sierra Leone, Liberia and Guinea – was the largest in recorded history.

Despite its efforts, the firm said the outbreak was partly responsible for a £9m loss on ordinary activities before taxation.

Plummeting iron ore prices and the collapse of two major customers in Africa also contributed to the losses.

Meanwhile, Dawnus claimed that it had received significant bad debt charges from African customers across 2014 and 2015, with the collective impact totalling £13.5m.

During the second half of 2015, the Dawnus board implemented a series of measures aimed at improving profitability and operational efficiency.

The board hopes that these measures will help return the group to profitability in 2016.

Despite the group's losses, Swansea-based Dawnus Construction Limited posted a £4.5m profit before tax for the financial year ending 31st December 2015.

Incorporated in 2013, Dawnus Group consists of Dawnus Construction Holdings, Dawnus Developments Limited and Dawnus International Limited, and indirectly holds a number of other subsidiary companies.

The firm currently has six offices across the UK, including London, Exeter and Birmingham, and has worked on projects including schools, housing developments and medical centres.



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