Jehu Group goes under with loss of 104 jobs

Grant Prior 2 months ago
Share

Welsh contractor and developer Jehu Group Limited has ceased trading with the loss of 104 jobs.

Begbies Traynor is now assisting the directors in placing the companies into administration.

The Bridgend based group was one of Wales’ leading construction and development businesses specialising in the social housing sector and had 17 live contracts worth in excess of £100m.

The business was established in 1935 by Jack Jehu and has remained family-run since across three generations, with a fourth generation also becoming part of the workforce.

Delivering fixed-price contracts with single digit margins that were agreed before the pandemic, the group’s cash reserves have been decimated by cost increases in excess of 25%.

The directors of the companies, Marc and Simon Jehu, said: “This is a truly devastating day for the business started by our grandfather over 85 years ago. Every possible option to keep the business alive has been completely exhausted and it with desolate hearts that we find ourselves with no choice but to cease trading.

“We did everything possible to avoid closure, but we were fighting a battle that simply couldn’t be won due to the successive economic shocks of the past couple of years.

“Our thoughts are first and foremost with our devoted colleagues who have lost their jobs, many of whom have given more than 25 years of service. We would like to thank the loyal and steadfast clients and supply chain who supported us, often carrying the added burden of those who sought to capitalise on our difficulties.

“We understand this is a worrying time for our colleagues, supply chain partners and customers. We are working with Begbies Traynor to get the best outcome from an impossibly difficult situation.”

Latest accounts for the company show a pre-tax loss of £4m from a turnover of £111m for the 18 months to September 2020.

Huw Powell, managing partner at Begbies Traynor in South Wales, said: “Delays in completing projects caused by the pandemic and subsequent cost increases caused a severe cash-flow crisis that it could not recover from, despite support from key stakeholders.

“It is hugely disappointing to see the group cease trading in these circumstances and highly regrettable that efforts to secure its future were unsuccessful, where the current political and economic turmoil counted against them.

“We are aware of the negative impact that this will have on the supply chain and hope that sub contractors will be able to work with the group’s customers to find the best possible solutions to complete existing projects.”

Data and credit checking specialist Red Flag Alert highlighted potential problems at Jehu back in 2020 with an elevated risk warning.

Subscribers to the Red Flag Alert service benefit from early warnings about the financial health of companies to help them avoid bad debts.

The Enquirer has linked-up with Red Flag Alert to offer readers a discount on its services and help you avoid worthless invoices from insolvent companies.

For more information and to benefit from the Enquirer discount click here.

Latest news

Glasgow civil engineer banned for £100k Bounce Back Loan abuse

Sole director handed 11-year ban for falsely claiming two loans for personal gain
30 mins ago

Unite passes union hotel job probe findings to police

Independent reports raise concerns of ‘potential criminality’ around union's £100m hotel and conference centre
2 hours ago

McLaren tops November contracts league

Excel exhibition centre £200m phase 3 wins lifts McLaren to pole position for contract wins last month
12 hours ago

Former Wates CEO joins Mace as new financial chief

David Allen replaces Richard Bienfait who stepped down in September
12 hours ago

M25 to go green under new Shell and Balfour deal

New trial of paving on UK's busiest motorway
13 hours ago

Bidders wanted for £125m painting and decorating framework

Apply now for latest Fusion21 deal
12 hours ago

Robertson wins first MIM-funded Welsh school job

£65m Flintshire school campus project first to use Welsh mutual investment model
14 hours ago

Willmott Dixon wins £130m Broadwater Farm estate revamp

Green light for north London estate transformation
13 hours ago

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
2 days ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
2 days ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
2 days ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
2 days ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
2 days ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
2 days ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
2 days ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
3 days ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
2 days ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
3 days ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
2 days ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
3 days ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
3 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
3 days ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
3 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
3 days ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
3 days ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
3 days ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
4 days ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
4 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
4 days ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
6 days ago

Contractor services