Construction insolvencies accounted for nearly one-fifth of insolvencies declared in the last twelve months
Data released from the government’s Insolvency Service have found that construction insolvencies accounted for 19% of businesses going into administration or declaring bankruptcy.
The construction industry was itself highest of the top five industrial sectors for insolvencies, beating out retail and hospitality services at a respective 16% and 13%.
The administrative and support service sector and the professional, scientific and technical activities both trailed behind at 10% and under.
The findings reflected a turbulent decade for construction
The analysis from the Involvency Service noted that construction insolvencies have outnumbered other industrial sectors consistently over the last decade (with the exception of hospitality related services during the height of COVID-19 lockdowns in Q4 of 2020).
All sectors saw a significant leap in the number of insolvencies since this time last year, though the construction industry’s 4,165 increased by nearly a thousand (3,213 in March 2022).
Whilst construction has shown sporadic growth over the last few months, the industry is still facing the lingering impact of the war in Ukraine and Brexit impacting the supply chain, with inflation rises compounding economic issues for companies of all sizes.
Recent construction insolvencies include:
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Metnor Construction Limited
Killingworth-based Metnor Construction Limited, which fell into administration in February of this year, recently met with creditors to discuss next steps.
Steve Ross, partner at FRP and joint administrator, said in February: “Metnor Construction was a long-established and major main North East building contractor that has delivered on significant projects across the UK but wasn’t immune to the impact of rising costs, which ultimately led to its insolvency.”
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Corniche Construction Ltd in Crawley
West Sussex firm Corniche catered for a variety of clients, ranging from education to ecclesiastical developments in the South of England.
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Topside Group Limited
Walling, window and door specialist Topside Group delivered on a number of projects in the North East and often worked with Morgan Sindall and BAM Construction.
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J M Scully Limited
Dorset based J M Scully was set up in 1983 by Mike Scully and was more recently run by his son Michael Scully. Their latest turnover figures indicated a pre-tax loss of £2.3m.
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Lane End Developments Construction Ltd
Takeover talks regarding the prominent housing developer in the North West, Warrington based Lane End, fell through earlier this year.
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Sterling Services Limited
45 employees were made redundant in late April when Sterling Services went into administration.
Interpath Advisory, who were appointed joint administrators, commented that Sterling Services had been hit by “wider group cashflow pressures and cross guarantees” which “ultimately resulted in additional liabilities arising and no access to ongoing funding.”
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Sturminster UK Ltd
The family-run company based in Bournemouth specialised in retail and commercial fit outs.
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ME Construction Limited
Once featured in the Sunday Times’ Fast Track 100 List and recognised as the UK’s fastest growing privately owned construction company, administrators were appointed to the Romford company on 13th April.
Harriet Clough
Twitter: @Harriet_PBC
