Alun Griffiths has begun a consultation with staff following a “strategic review of the business” caused by “recent challenges” including financial performance.
In October 2023, the Welsh civils contractor reported turnover of £301m and a £20m pre-tax loss for the year to 31 December 2022 – its fourth consecutive year in the red. Its current accounts are currently overdue.
A consultation with staff on “proposed changes” has been initiated by management following the review, according to an exclusive statement shared with Construction News.
A spokesperson for Alun Griffiths said: “We have carried out a comprehensive strategic review of the business in response to recent challenges faced by Griffiths, including market conditions and financial performance.
“Following this review, a consultation process has begun with employees. This will work through proposed changes with our employees and hear their feedback before any final decisions are made.
“We’re committed to continuing to deliver for our customers and suppliers in line with our contractual obligations.”
The statement did not specify when the consultation period will end, or whether redundancies were being considered.
In 2022 the group employed a monthly average of 908 staff.
Its accounts for 2023 were due to have been filed with Companies House by 31 December last year.
Alun Griffiths was ranked 61st in the CN100 2024 index of top UK contractors.
Formed in 1980 as Speckpound Ltd, the firm was acquired by Tarmac for £35.6m in January 2018.
In its accounts for 2022, Alun Griffiths said it had launched a five-year strategy, reviewed key contracts and introduced a new business improvement plan.
The Abergavenny-based firm carries out work across Wales and South West England and is lead contractor on a £590m dualling scheme on the A465, as part of the broader Heads of the Valleys road upgrade programme for the devolved Welsh government.
Other active projects include a joint venture with Farrans to deliver a new £60m transport hub at Bristol Airport.
However, the company walked away from the £89.2m Banwell Bypass job in Somerset last March for an undisclosed reason. It was replaced by Galliford Try six months later.
A spokesperson for the Welsh government told CN: “This is clearly worrying news for the employees of Alun Griffiths Contractors, their families and local communities.
“We will continue to work with Alun Griffiths Contractors during this consultation process.”
Read More
Will Ing