ANGLESEY Council is in talks with major construction company Dawnus after it emerged the major contractor could be on the verge of administration.

It is understood that directors of the Swansea-based firm have informed contractors and suppliers that the administration process is now underway, with Grant Thornton expected to be appointed as administrator.

Its main north Wales offices are based at Plas Faenol, Bangor, with the company currently holding multi-million pound contracts with Anglesey Council.

A spokesman for the Council said: "We are aware of the current financial difficulties experienced by Dawnus and are in discussions with the company at present," they said.

“Our main focus is to ensure that essential road maintenance services are maintained in the short term, securing contractors to undertake the road maintenance contract and to complete the flood alleviation scheme in Beaumaris.

“We are also working to assess the impact on local sub-contractors and suppliers; and looking to see what can be done to help those employed by Dawnus locally.”

Since April 2017, Dawnus has been responsible for all highway maintenance and street lighting work on the island as well as carrying out gritting during winter.

The council has a contract worth approximately £2m a year with the firm which was set to run until 2023.

The island’s AM Rhun ap Iorwerth added: “I’m very concerned to hear about the collapse of Dawnus. I am concerned for staff directly employed and their sub-contractors, some of whom are already telling me they are owed money.

“I am seeking an urgent response from Welsh Government on what steps they’ll be taking to seek all options for the future of Dawnus, what support will be given and what intervention is needed relating to the continuation of current contracts.

“As a key anchor company with many important public sector contracts, Dawnus is an important company for us in Wales, and we would expect the Welsh Government to do all that it can to protect the company and its workforce.

“The Welsh Government needs to be dynamic in this instance and needs to look at what role the Development Bank of Wales can play in saving the company, possibly through a local employee or management buy-out.”