The number of administrations in September has soared, equalling February’s peak of 32 and bringing this year’s total so far to more than 200.
One analyst said the higher tempo of business failures ─ a third higher than the 21 recorded by Creditsafe in August ─ marked a “worrying milestone”.
There have now been 223 administrations this year compared with 208 in the first nine months of 2024.
One of the largest victims was London-based Ardmore Construction Ltd (ACL), whose latest accounts, for the year to 30 September 2023, showed it made a pre-tax loss of £14m on a £313m turnover.
At the time, managing director Patrick Byrne blamed “supply chain inflation, supply chain failures and some poor management” for the “disappointing results” of the contracting business.
The construction firm has appointed two administrators from Begbies Traynor – Dominik Czerwinke and Jamie Taylor – and Jason Callender of Panos Eliades Callender & Co to administer its affairs.
Ardmore’s latest accounts showed it had almost halved its headcount from 432 to 244.
Another September casualty was Liverpool-based mechanical and electrical (M&E) specialist HE Simm.
The family-owned firm appointed administrators Patrick Lannagan, Adam Harris and Richard Hough of Forvis Mazars citing “enormous pressure on the business” that it could not withstand.
The M&E specialist posted a £10.4m pre-tax loss from turnover of £118.3m in its latest accounts for the 2023 calendar year, which showed it employed 128 staff.
“Sadly, recent circumstances have placed enormous pressure on the business that we have been unable to withstand,” said chief executive Gareth Simm.
“These have included a combination of factors: failure of a key client; the loss of a number of projects; delays to major schemes; increasingly commercially challenging client behaviours; and losses on London projects.”
All its employees have been made redundant.
HE Simm owed trade creditors £17.1m in its most recent accounts.
The firm’s project portfolio includes M&E work for John Sisk & Son at Wembley Park, London; for Downing Construction at River Street Tower in Manchester; and for Lendlease at Elephant Park, London.
Installation firm Baxter Kelly has also fallen into administration after seeing a steep rise in its cost of sales.
The Staffordshire-based firm appointed Kroll Advisory Ltd to oversee its affairs, with Benjamin Wiles and Philip Dakin named as joint administrators.
In its latest accounts, for the year ended 31 May 2024, directors warned that the retrofit firm was reliant on government-funded schemes and energy-efficiency incentives.
In 2024, its accounts showed turnover increased by 110 per cent from £20.5m to £43.1m and it had 154 staff. But its pre-tax profit had fallen from £2.2m to £1.4m and it warned its cost of sales had increased by 130 per cent from £16.2m to £37.4m.
Hull-based Kingston Modular filed for administration on 12 September, appointing Frazer Ulrick of Westgates.
Its latest accounts, for the year ending 31 May 2024, recorded a turnover of £12.6m, down from £17.2m, and a pre-tax loss of £563,400, down from of £77,400 the previous year. It had 87 employees with a wages bill of £3.5m.
Sharp spike
Jennifer Lockhart, partner and restructuring specialist at independent law firm Brabners, said September’s insolvency figures marked a “worrying milestone, with levels not seen since the pandemic”.
“This month’s data reflects a sharp spike at a time when the sector traditionally benefits from stronger performance at the tail end of the summer trading period,” she told Construction News.
“It adds to a growing picture of prolonged stress in the construction industry. The latest PMI results show activity declining for a ninth consecutive month, reinforcing the sense that confidence, demand and investment all remain subdued. Against this backdrop, it’s not surprising to see insolvencies tracking ahead of last year.
“Looking ahead, we expect financial resilience and risk mitigation to remain under intense scrutiny across the supply chain. Early engagement with advisers, robust cashflow forecasting and careful contractual management will be critical in navigating what is likely to be a difficult end to the year.”
Peter Vinden, director of advisory services at Leonard Curtis, mirrored Lockhart’s concerns and said the figure showed an “alarming” rise.
“The increase in employer’s national insurance contributions, a raft of new red tape slowing up projects and increasing costs and eroding margins are considerable factors contributing to a loss in confidence for an increasing number of business owners who cannot see a way forward,” he said.
“There is a real sense of fear that the chancellor will increase taxes again in her next budget, adversely impacting the property sector. Is it any wonder that agents are warning of falling sales and stagnant market conditions as purchasers await the next tranche of tax rises.”
| Company name | Location | Date of administration | Type of documents filed | Description of company activities |
| 178 PARK VIEW LTD | Orpington | 05 Sep | Appointment of receiver/manager | Construction of commercial buildings |
| 713 EMMERSON LTD | Peterborough | 05 Sep | In administration | Construction of domestic buildings |
| ACRE INVEST (COLLINGDON) LTD | Harpenden | 24 Sep | Appointment of receiver/manager | Development of building projects |
| ARDMORE CONSTRUCTION LTD | London | 02 Sep | In administration | Construction of commercial buildings |
| BALDEAGLE INVESTMENTS LTD | London | 11 Sep | Appointment of receiver/manager | Development of building projects |
| BAPTT SHOPFITTERS LTD | Swansea | 26 Sep | In administration | Manufacture of other fabricated metal products n.e.c. |
| BAXTER KELLY LTD | Staffordshire | 17 Sep | In administration | Construction of domestic buildings |
| BEAUFORD 3 LTD | Waterlooville | 17 Sep | Appointment of receiver/manager | Other letting and operating of own or leased real estate |
| BLUE OCEAN BUILDING LTD | Warrington | 24 Sep | In administration | Construction of commercial buildings |
| CALATRAVA CAPITAL LTD | London | 18 Sep | Appointment of receiver/manager | Development of building projects |
| CALLEVA HOMES (BISHOPS) LTD | Berkshire | 18 Sep | Appointment of receiver/manager | Development of building projects |
| CARDINAL ELECTRICAL LTD | Portsmouth | 13 Sep | In administration | Electrical installation |
| CITY & SUBURBAN (MONIER) LTD | Barnet | 25 Sep | Appointment of receiver/manager | Development of building projects |
| COLSHAW CONSTRUCTION LTD | Newcastle Under Lyme | 17 Sep | In administration | Development of building projects |
| CROWNHILL TOPSOIL & AGGREGATES LTD | Rogiet | 30 Sep | In administration | Other specialised construction activities n.e.c. |
| EGLOSHAYLE 4 LTD | Dartford | 29 Sep | Administration Order | Construction of domestic buildings |
| EXPRESS HOUSING GROUP LTD | Egham | 30 Sep | Appointment of receiver/manager | Construction of domestic buildings |
| H.E. SIMM & SON LTD | Liverpool | 11 Sep | In administration | Electrical installation |
| HILBRE HOMES LTD | Wirral | 12 Sep | Appointment of receiver/manager | Construction of domestic buildings |
| KINGSTON MODULAR SYSTEMS LTD | Hull | 12 Sep | In administration | Construction of commercial buildings |
| MULTI UTILITY U.K. LTD | Lancashire | 09 Sep | In administration | Construction of utility projects for electricity and telecommunications |
| N&L JENKINS AND SONS LTD | Bolton | 16 Sep | Appointment of receiver/manager | Development of building projects |
| NEXUS UTILITIES LTD | Kidlington | 27 Sep | In administration | Other construction installation |
| OROCCO LTD | Dalkeith | 01 Sep | In administration | Joinery installation |
| PENTALEC LTD | Kent | 18 Sep | In administration | Electrical installation |
| PREMIER CIVILS MIDLANDS LTD | Nottingham | 19 Sep | Appointment of receiver/manager | Site preparation |
| PRIORY CAPITAL INVESTMENT LTD | Isle of Wight | 18 Sep | Appointment of receiver/manager | Other construction installation |
| PROVIDENCE GATE BRETHERTON LTD | Preston | 05 Sep | Appointment of receiver/manager | Development of building projects |
| REGALPOINT (BYFLEET) LTD | Sevenoakes | 30 Sep | Administration Order | Development of building projects |
| RIDDLES BROS LTD | Strabane | 30 Sep | In administration | Operation of gravel and sand pits |
| THE MITCHELL GROUP LTD | Horsham | 17 Sep | In administration | Development of building projects |
| UKPI (TRIMSARAN) LTD | Worcester | 19 Sep | Appointment of receiver/manager | Development of building projects |