Ardmore Group Ltd has plunged deeper into the red amid losses on legacy jobs and the collapse of its contracting arm following a “significant” adjudication award.
The release of audited accounts for the year to 30 September 2024 – following a four-month delay – showed the group’s pre-tax loss quadrupled from £10.8m to £42.4m, while turnover dropped by 14 per cent from £403.1m to £345.9m.
As a result, its pre-tax margin dropped to -12.2 per cent compared to -2.7 per cent the previous year.
The firm attributed the drop in turnover to delayed contract awards, “slower progress on a limited number of projects, and a more selective approach to work acquisition” as it sought to reduce its exposure to risk.
The deeper loss reflected “further losses on a small number of legacy construction projects” and the collapse of its contracting business Ardmore Construction Ltd last August, it added.
While that event occurred after the period covered by the latest accounts, it was included as “part of the group’s separation of discontinued activities”, Ardmore Group said.
“The preparation and publication of the accounts followed this process, reflecting the complexity of formally concluding these matters.”
The group also associated its deeper pre-tax loss with what it described as a “significant” building liability order (BLO) adjudication award against Ardmore Construction in December 2024 – also after the period covered by the accounts.
The High Court ordered Ardmore Construction to pay £15m to BDW in relation to alleged fire safety defects on the Crown Heights development in Basingstoke, which achieved practical completion between 2003 and 2004.
Ardmore Group’s accounts included a section on contingent liabilities that dealt exclusively with the introduction of BLOs.
They acknowledged that the group of companies “have received multiple claims, or notices of intention to raise a claim, relating to historic contracts” delivered by Ardmore Construction.
While that company is now in administration, other Ardmore companies “may also be held jointly and severally liable for claims involving a relevant liability, where it is deemed just and equitable”, the accounts added.
Ardmore Group said it cannot assess the likely outcome of ongoing potential BLO claims, given their “vague nature, a lack of supporting evidence from claimants, and the lengthy timeframes involved before a reliable estimate of financial cost can be determined”.
Cash at bank and in hand eroded from £84.3m to £27.6m, although the accounts said that cash resources at the year-end were “sufficient to meet ongoing operational requirements”.
No dividends were paid out, and the group held no external bank loans or ovedrafts.
Its average monthly headcount rose from 515 to 638 staff, resulting in a heftier annual wage bill of £38.6m compared with £35.3m the year before.
The accounts said the firm had put in place a series of “targeted actions” to address “project-specific issues and the broader operating model” of the group.
These included the closure of its in-house joinery and metal workshops as a step towards “reducing exposure to manufacturing-related overhead and execution risk”, the accounts said.
Chairman Cormac Byrne said the latest results were “anomalous”, adding that the group’s underlying performance and medium-term prospects were more positive.
“These results reflect a difficult period for the group, that has tested every part of the business, but they do not reflect where Ardmore is now or the direction we are heading,” he added.
“Trading performance improved materially following the year-end and continued through 2025,” Ardmore Group said in a press release accompanying the results.
It added that it expects to report an £11m pre-tax profit for the year to 30 September 2025, “supported by a robust order book, improved delivery performance and a continued focus on governance and execution”.
The group retains an active contracting arm called Ardmore Construction Group, which focuses on residential and hotel refurbishment jobs in London and South East England.
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Ben Vogel