SIGNIFICANT losses within parts of a Yate-based construction and civil engineering group has led to two of its businesses ceasing trading.

ER Hemmings (Building) Ltd and ERH Construction Ltd have filed for insolvency, with administrators set to be appointed by October 31.

The businesses were part of the ERH Group, which has its headquarters in Dean Road and has operated for more than 40 years.

Their closure has led to a number of people losing their jobs, although the group declined to reveal how many were affected.

But in a statement, the group said efforts would be made to find work for them in its companies which were continuing to operate.

ERH had consisted of the problem-hit building and construction companies and ERH Communications Ltd, together with ERH Holdings.

Its directors said they wanted to assure customers, suppliers and employees that it was business as usual for the parts of the group that were unaffected by recent events.

They said the group was implementing a financial restructuring to strengthen the long term viability of ERH Communications and ERH Holdings.

The statement said: "Following a recent senior level and board restructuring which has seen five directors leaving the group, the remaining board is confident Communications and Holdings is now on a sound footing to trade successfully going forward and seeks continued support from customers, suppliers and employees.

"Unfortunately, the financial restructuring has resulted in the closure of Building and Construction, causing the unfortunate loss of a small number of jobs. However, where opportunities allow, the company is looking to secure employment within the unaffected companies.

"In the very difficult trading conditions of the past few years, Building and Construction has incurred significant trading losses.

"The directors have filed notice of intentions to appoint administrators for Building and Construction by October 31, 2014. Once appointed, they will formally communicate with all affected parties."

It said accountancy firm Grant Thornton was working on site in Dean Road.

Group chairman Ernie Hemmings said: "Having traded for 44 years, it is devastating to find what has occurred in the group over the last two years.

"However, I am immensely grateful for the support of our customers, creditors, workforce and dedicated team of senior managers working with Grant Thornton to secure a profitable viable business going forward. The support we have received is appreciated and very humbling.”

ERH Construction was the main contracting construction division involved in multi-million pound schemes such as care homes and school projects.

ER Hemmings was involved in general building schemes ranging from small houses to bigger scale projects, including having contracts with local councils.

ERH Communications provides installation, maintenance and construction services to roadside communications, civil engineering and traffic management schemes.

In its most recent results, released in August 2013, group turnover rose to £42 million, with pre-tax profit increasing to £1 million.

It said among its major contracts were those with Bristol Airport, Bristol City Council, Bath and North East Somerset Council and the University of the West of England.