Page 164 - Articles Written by JGJ EF DPS

The Case Story

FRAIN FAMILY: Wrekin Construction Owners 1960 - 2007

The Shropshire-based Wrekin Construction Company Ltd., a civil

engineering company, was founded in 1960. By 2007 it had an annual
turnover of in excess of £100m. However, by 2007 it was struggling for
survival after an expansion plan went wrong. It had by 2007 incurred
trading losses of £7.6m (Appendices 2,3) and in March of that year it was
acquired by the Tamar Group Ltd.

Wrekin was recognised by the industry for its pioneering change,

combining changing methods and technology with traditional values,
business integrity and skills development for over fifty years.

Tom Frain believed quality was the key to success and consequently
maintained a direct labour workforce and as such was responsible for its
taxation, National Insurance, health & safety and training etc., which all

added to costs. This meant Wrekin Construction was always at a
disadvantage when quoting for contracts compared to other companies
which used sub-contractors.

During the decade 2000 to 2010 Wrekin Construction had been through

peaks and troughs as the construction industry began to slow down.

Family Shareholding in Wrekin Construction Pre-Unwin

Tom Frain: 10%
Frain children (3, 20% each) 60%

Non family directors 10%

In 2001, the company made a loss of £880,000 but turned the business

around in a dramatic reversal of fortunes.

By June 2003, it unveiled profits of more than £2 million, with turnover
up 27 per cent to break through the £100 million barrier.

But 2004 saw the construction industry falter forcing Wrekin to undertake

an ambitious restructuring strategy under the control of a new managing