Due to heavy financial losses, the directors of civil engineering contractor R&W have closed its specialist rail arm.
In 2016 R&W Rail was launched and aimed to invest in achieving RISCQ audit approval two years later to then achieve a place as a Network Rail Tier one contractor on the framework of the western renewal for projects up to £4m.
Despite all the efforts, in 2020 due to financing in mobilizing new teams and loss-leader tenders to build up a track record the firm encountered a £0.8m loss in last released accounts.
The residual activities such as R&W Civil Engineering, which is concentrated on the roads sector, are stood immune from the company’s voluntary liquidation of the specialist business after its short foray into the rail.
According to the group board in a statement: “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.”
The group board also added: “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 has 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 remainder of the R&W Group is strong and will continue to deliver high-quality infrastructure projects by collaborating with customers and helping them to achieve their goals. 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 endeavors in the future,” continued the group board.
The liquidators will be Paul Davies and Sandra Mundy of James Cowper Kreston jointly.