Construction services and property firm MJ Gleeson Group has reported a slump into the red in the first half after massive losses at its building division.
In a statement alongside the results, the group said it has now decided to exit from building operations, as distinct from civil engineering for the water industry, where the group enjoys an exceptionally strong presence, and its specialist construction activities.
The group said it had signed a memorandum of understanding for the buyout of Gleeson Building by its new senior management team.
Last month Gleeson Building completed a £4 million extension at Shelfield Community College in Pelsall on behalf of Walsall Council.
In the light of the board's decision to withdraw from building, Andrew Muncey has decided to resign as group managing director with immediate effect.
Gleeson said a £16.6 million loss was incurred by the Building Division in the half year, including a £1.5 million charge for restructuring in the period.
As a result Gleeson reported a pretax loss of £6.7 million compared with a £3.3 million profit in the same period last year. Turnover for the halfyear fell to £266.3 million from £306.8 million.