A number of major construction projects across Wales face an uncertain future after a well-known firm collapsed into administration. Bridgend-based Jehu Group, which operates across south Wales and the south-west of England, announced the news last week and said it was a "truly devastating day" for the company which was founded in 1935.
The family-run-and-owned firm has ceased trading blaming the situation on spiralling construction costs, with inflationary pressures decimating its cash reserves. In a statement, the company's directors, Marc and Simon Jehu, said it had been hindered by fixed-price contracts it had struck before the pandemic with profit margins being wiped out by construction cost inflation spiralling by more than 25%. They added that they had "completely exhausted every possible option" to keep the business going, but "found themselves with no choice but to cease trading".
"We did everything possible to avoid closure," they said. "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 [administrators] Begbies Traynor to get the best outcome from an impossibly difficult situation.”
