DONCASTER: Social housing contractors Keepmoat and Apollo have issued notices to hundreds of staff that they are at risk of redundancy ahead of the merger of the two firms.

The firms are set to sign a finalise a merger deal later this month to form a company with a turnover of over £1bn.

Keepmoat confirmed it had issued notices to staff at risk of redundancy, but would not put a figure on the number of staff at risk.

Ian Sutcliffe, appointed chief executive of Keepmoat in January, will head the merged business, said last month: "My first priority is pulling together the board to agree the shape of the merged businesses, so we get the best ideas, practices and people from the two firms."

Keepmoat recorded a loss of £50m last year when interest on its debts were taken into account.