Revealed: the 38 firms that went into administration in March

Thirty-eight construction companies fell into administration in March.

Not only was the total eight higher than February’s tally and 23 more than January, but it also marked an all-time high since Construction News began publishing monthly administrations data from Creditsafe in January 2020.

The previous record was set in February 2020 with 36 administrations.

The first-quarter (Q1) total of 83 insolvencies was almost another record, beaten only by the 90 business collapses recorded in Q1 2020.

“A lot of construction is typically low-margin – and, really, that means there’s not an awful lot of ability [for companies to] take knocks,” said Allan Kelly, a Newcastle-based partner in the restructuring team at FRP Advisory. “There’s not much wiggle room, and if there is a problem like inflation or a bad contract, it can completely derail a business.”

Among the most notable casualties in March was Northern Irish M&E contractor William Coates Ltd, which had been in business since 1964. Scott Murray and Ian Davison of Keenan Corporate Finance were appointed as joint administrators of the company on 2 March.

William Coates specialised in commercial, industrial and educational projects in Northern Ireland and the UK mainland. It was the M&E subcontractor for Gilbert-Ash on significant completed projects such as the £60m extension of the National Portrait Gallery in London and a business school (pictured) at the University of Brighton in Sussex.

In its most recent set of annual accounts, made up to 31 March 2021, the County Antrim-based firm posted full-year turnover of £13m – down by 25 per cent on the previous year – although it still made a modest profit of £38,321 against a loss of £2.4m in 2020.

Six other companies that collapsed in March were large enough to file detailed accounts with Companies House. CN previously reported on the demise of cladding firm Jessella and Jarvis Contracting (both based in Hertfordshire), as well as the failure of M&E specialist Norstead (sister firm of Newcastle-based Metnor, which itself went under in February).

Yorkshire blues

The March list also includes Torpoint Ltd, which began trading in 1993 and boasted a portfolio of completed residential and educational projects in northern England, especially Yorkshire.

In its most recent set of audited accounts for the year ending 28 February 2022, the company recorded net assets of almost £4.6m, while turnover surged by 22.5 per cent to £24.2m.

However, six months later, Torpoint noted “cashflow pressures” arising from a combination of payment delays, higher material prices “and a delay in the sale of properties” built by its development subsidiary Torpoint (Littlemoor) Ltd, which remains in business.

Company directors attempted to stave off disaster by extending terms of credit with suppliers, chasing payment of overdue retentions and taking out an additional loan facility.

Eventually, however, Rushtons Insolvency was appointed as administrator for the Bradford-based contractor.

Castlehouse Construction Ltd was another Yorkshire-based contractor to fail in March. The company had a track record of industrial and commercial projects in northern England, including several supermarkets for Lidl.

Administrators from Minerva have been appointed.

Castlehouse recorded turnover of £23.6m for the year ending 31 March 2022, up from £21.09m the previous year, but higher “administrative expenses” pushed profitability into the red with a net loss of £132,452.

Interpath was appointed as administrative receiver last month for Rutherford Estates Ltd, a construction subsidiary of the collapsed cancer-treatment provider Rutherford Health Group.

In its most recent accounts for 2019/20, turnover at Rutherford Estates grew by £1m to reach £1.5m, although net liabilities totalled £33.6m.

Directors admitted that “there are material uncertainties of the going concern assumption of the [Rutherford Health] Group, which has in turn caused material uncertainty of its ability to provide continuing financial support” to Rutherford Estates.

Only three of the four planned Rutherford oncology centres were operational by the time Covid hit the UK in March 2020, and disruption triggered by the pandemic caused the entire group to be wound up in June 2022.

CN reported in early April that Channel Islands-based contractor Garenne Construction Group Ltd was placed into administration after the liquidation of its subsidiary, Camerons, while County Durham-based steel supplier Intelligent Steel Solutions is set to be liquidated by mid-April.

So will the situation across the industry deteriorate further? Brian Burke, a restructuring specialist and managing director of independent advisory firm Quantuma, said that some firms could “reposition their cost base” by picking up contracts and finishing off work left by collapsed companies.

However, the cost of materials and labour each remain too high, in Burke’s view, and chancellor of the exchequer Jeremy Hunt did not address these industry-specific issues in last month’s Spring Budget announcement.

“The chancellor is clearly trying to bring inflation under control in general,” Burke said. “And, obviously, reduced inflationary pressures will be helpful to everybody. But in terms of specific measures that benefit the construction sector, I’m not aware of any in the Budget.”

 

Company name	Location	Date of administration	Type of documents filed	Description of company activities
ABS RESTORATION LTD	Liverpool	3 March	Administration order	Other specialised construction activities
AMBERCROFT CONSTRUCTION LIMITED	London	29 March	Administrative receiver appointed	Construction of domestic buildings
BOAT RACE HOUSE LIMITED	Berkshire	23 March	Administrative receiver appointed	Development of building projects
CARD PROPERTY DEVELOPMENTS LTD	Brecon	1 March	Administrative receiver appointed	Development of building projects
CASTLEHOUSE CONSTRUCTION LTD	Leeds	17 March	In administration	Construction of commercial buildings
CONAIR (UK) LIMITED	Devon	24 March	In administration	Plumbing, heat and air-conditioning installation
CTBO LTD	Sunderland	9 March	In administration	Electrical installation
DIWAN PROPERTY DEVELOPMENT LTD	London	6 March	Administrative receiver appointed	Construction of domestic buildings
E J CIVILS LIMITED	Lincoln	11 March	In administration	Construction of commercial buildings
FRED WATKINS (ESTATES) LIMITED	Gloucester	2 March	Administrative receiver appointed	Development of building projects
GRAVITY FLOORING (UK) LIMITED	London	31 March	Administration order	Floor and wall covering
HOMES BY TRAFALGAR DURHAM LIMITED	Durham	29 March	Administrative receiver appointed	Construction of commercial buildings
HURST ELECTRICAL CONTRACTORS LIMITED	Leeds	24 March	In administration	Electrical installation
ICD ENERGY GROUP LIMITED	Barnsley	27 March	Administration order	Plumbing, heat and air-conditioning installation
JAMES WOOD (ELMER ARLYSS) DEVELOPMENTS LIMITED	London	11 March	In administration	Development of building projects
JARVIS CONTRACTING LIMITED	Hertfordshire	11 March	In administration	Construction of commercial buildings
JESSELLA LIMITED	Hertfordshire	9 March	In administration	Development of building projects
MULBURY HOMES (GREG STREET) LIMITED	Cheshire	20 March	Administrative receiver appointed	Development of building projects
NATIONWIDE FRAME SERVICES (NORTH WEST) LIMITED	Lancashire	14 March	In administration	Glazing
NORSTEAD LIMITED	Newcastle upon Tyne	9 March	In administration	Electrical installation
OHC PROPERTY FIVE LIMITED	York	23 March	Administrative receiver appointed	Development of building projects
OHC PROPERTY FOUR LIMITED	York	8 March	Administrative receiver appointed	Development of building projects
PEAR TREE DRIVE LIMITED	London	14 March	In administration	Development of building projects
R O’DONNELL PLANT & CIVIL LTD	Hull	28 March	In administration	Construction of other civil engineering projects
RAM SAFETY SOLUTIONS UK LTD	Cheshire	28 March	In administration	Other specialised construction activities
REVO LEISURE SERVICES LIMITED	Berkshire	22 March	In administration	Other specialised construction activities
RUTHERFORD ESTATES LIMITED	Hereford	3 March	Administrative receiver appointed	Development of building projects
RUTHERFORD INFRASTRUCTURES LIMITED	Hereford	3 March	Administrative receiver appointed	Development of building projects
STEPSANDCO LIMITED	London	21 March	Administrative receiver appointed	Construction of domestic buildings
STOAK HOMES LIMITED	Surrey	27 March	Administrative receiver appointed	Construction of domestic buildings
SUMMER HOUSE LONDON LIMITED	London	10 March	Administrative receiver appointed	Development of building projects
TORPOINT LIMITED	Bradford	28 March	Administration order	Development of building projects
TRIBUS ENERGY SOLUTIONS LIMITED	Durham	29 March	Administration order	Construction of other civil engineering projects
WARMECH LTD	Worcestershire	30 March	In administration	Construction of other civil engineering projects
WEST HOE DEVELOPMENTS (PLYMOUTH) LTD	Plymouth	2 March	Administrative receiver appointed	Development of building projects
WESTBRIDGE DEVELOPMENTS LIMITED	Bolton	13 March	Administrative receiver appointed	Development of building projects
WILLIAM COATES LTD	County Antrim	9 March	In administration	Electrical installation
WINREM LTD	Kent	29 March	In administration	Other construction installation