COLEG Gwent is to make redundancies amid the closure of its failed training company which has cost it more than half a million pounds in just two years.

The most recent accounts for Coleg Gwent Business - the commercial training arm of Coleg Gwent - show the company has been haemorrhaging money since it opened in 2017.

They also show that Coleg Gwent loaned the training business over half a million pounds in the financial year ending July 31, 2018, in an effort to keep it afloat.

But less than a year later, the college has confirmed it will close Coleg Gwent Business, currently based at Royal Chambers in Newport City Centre.

It also confirmed that 7.4 full time equivelent (FTE) jobs are at risk of redundancy across the entire college. All affected staff have been told.

The consultation process for these redundancies is due to finish today (April 30), and it's unclear whether they will be mandatory or voluntary, the college says it has encouraged every member of staff at risk to apply for suitable posts across Coleg Gwent.

The redundancies are understood to be in the areas of commercial and employer engagement, curriculum management and administration.

A spokesman explained that though although Coleg Gwent Business will close, the services it provided for businesses, such as work based learning, apprenticeships and training for employers, would still be provided by the college.

They added that despite the redundancies, new jobs had been created in the Higher Education Support and Internal Communications department.

Public accounts on Companies House detail the training businesses short but stormy history.

Incorporated in 2016 under the trading name Coleg Gwent Training Ltd, its most recent accounts show it made of loss of £373,000 for the year ending 31 July, 2018.

Reacting to these losses, Coleg Gwent loaned it £611,000 and "committed to continue with financial support" in the hope that it could make a return on the investment in five years' time.

On top of that, there was a £64,000 actuarial loss on the pensions scheme attached to the training business.

The accounts also show that £617,000 is owed by Coleg Gwent Business to creditors, including Coleg Gwent itself, by July 2019, leaving the company's profit and loss account – which represented its accumulated profits, losses and distributions - £437,000 in the red.

Annual salaries for the year ending July 31, 2018, were recorded as £517,000, with the average monthly number of employees noted as five.

According to companies house, there were two directors of the company – Guy Lacey, principal of Coleg Gwent, and Stephen Owen, business development director of Coleg Gwent Business.

Accounts also record that no director received any remuneration in respect of their services towards Coleg Gwent Business.

Coleg Gwent released the following statement to the South Wales Argus:

"Coleg Gwent’s Board of Governors have approved a proposal for a number of changes to the College structure. The focus of the proposed changes are to ensure that the College continues the good work done to improve learner outcomes and strengthen employer engagement and involvement in curriculum development going forward.

"The focus of the proposed changes are to deliver a structure which significantly improves accountability, addresses the complexity and performance of the College’s employer engagement and commercial arrangements to better deliver a robust curriculum offer aligned with industry and support employer needs.

"In the current proposal, whilst there are a number of roles affected there is a total of 7.4 full time employment (fte) jobs at risk of redundancy across the areas affected; commercial and employer engagement and curriculum management and administration.

"These changes directly affect Coleg Gwent’s commercial training arm based at Royal Chambers in Newport City Centre. It is proposed to close, but work based learning, apprenticeships and training for employers would still be provided by the college.

"In addition to the reallocation of commercial training, and to support our dedication to our learners’ experience and provide an improved offer, we have created new jobs in Higher Education Support and Internal Communications.

"All members of staff have been notified of the proposed changes and the College is working closely with trade unions during this period of consultation. The consultation is due to close on 30 April."

Have you been affected by this news? Contact us anonymously by email sam.ferguson@gwent-wales.co.uk to tell us your story.