Renew Holdings has announced a restructuring of its northern operations which could result in the loss of 60 jobs at its subsidiary firm Allenbuild.
The group is planning to shift its focus to only non-specialist construction work in the north of England. Restructuring and redundancy costs will lead to exceptional costs of around £3.5 million during the second half of 2011, it said.
In a statement issued to the stock exchange, Renew Holdings said: “The board has concluded that its presence in the non-specialist and discretionary public spending building markets is unable to provide acceptable and sustainable returns at an appropriate balance between risk and opportunity.”
Allenbuild had been a construction and plant hire group which was listed on the stock exchange. A demerger resulted in the creation of Speedy Hire as the main listed company, while Allenbuild was sold to YJL - the construction arm of Renew Holdings.
Allenbuild’s focus shifted to general contracting and civil engineering, but over the last few years it has conducted work for healthcare, education, PFI and other government-led contracts.
The firm said: “Going forward, Renew’s specialist building activity will be based in the south.”