Ardmore Construction Ltd has filed a notice of its intention to call in administrators.
The notice was filed at the High Court yesterday (28 August).
None of the other companies within the Ardmore Group have followed suit.
In its last published accounts, for the year to 30 September 2023, Ardmore Construction Ltd made a pre-tax loss of £14m on £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.
He added that a restructure meant new construction contracts would be held by other group companies in future.
It made £110m of provisions for liabilities in the period, up from £59.3m in 2022, but only had net assets of £12.8m — a factor prompting an information order application from Barratt Developments’ main trading arm BDW.
In February, the High Court denied BDW’s attempt to access details of Ardmore Construction’s sister companies before liability is decided in an £85m defects case.
Information orders can be made by the High Court under the Building Safety Act 2022 (BSA). If approved, they compel companies to provide information to a potential applicant for a building liability order (BLOs) — also introduced under the BSA — detailing their assets and associations with another company.
BLOs can force contractors and developers to pay for faults even if liability is technically held by a joint venture, subsidiary or sister company that has been shut down or is unable to pay.
BDW was considering applying for a BLO, but it first applied for an information order about Ardmore Construction Group Ltd, Ardmore Group Ltd and Ardmore Group Holdings Ltd.
But the judge in the BDW case rejected the application, in a ruling that legal experts believe significantly narrows the scope of future BLOs.
BDW was pursuing Ardmore Construction Ltd over five schemes: Crown Heights in Basingstoke; Explorer Court in Plymouth; Pierhead Lock in the Isle of Dogs; Galleria in Peckham; and Citiscape in Croydon.
Court records show claims against Ardmore Construction Ltd have also been lodged by companies including Taylor Wimpey, Bellway and Thames Valley Housing Association.
Taylor Wimpey has lodged simultaneous legal claims against Ardmore Construction Group Ltd, Ardmore Group Ltd and Ardmore Group Holdings Ltd.
Ardmore referred Construction News to Begbies Traynor for further information about the administration.
Begbies Traynor has been contacted for comment.
Read More
Ian Weinfass