R&W Rail was built from a start-up in 2016, investing in achieving RISCQ audit approval two years later to then securing a place as a Network Rail Tier one contractor on the western renewals framework for projects up to £4m.

But investment in mobilising new teams and loss-leader bids to build up a track record contributed to the firm recording a £0.8m loss in last published accounts for 2020.

The remaining operations including R&W Civil Engineering, focused on the roads sector, are unaffected by the company voluntary liquidation of the specialist business after its short foray into rail.

In a statement the group board said: “It is with deep regret that the directors of R&W Rail must announce that the board has resolved to cease to trade and to seek shareholders’ approval for the liquidation of R&W Rail.

“The business is no longer viable in the current rail marketplace.

“We understand the impact that this decision may have on our staff, our clients and our supply chain, however, it is a route that is dictated by circumstances beyond the directors and rail team’s control.

“The team have worked tirelessly to build the business from a start-up in 2016, a fantastic achievement that makes the closing of the business, although a necessity, a very hard decision to make.

“The directors would like to thank all the staff and our suppliers for their efforts to date, delivering numerous highly successful and complex projects, and wish them well with their endeavours in the future.”

Paul Davies and Sandra Mundy of James Cowper Kreston will act as joint liquidators.