{"id":853949,"date":"2025-06-07T09:12:04","date_gmt":"2025-06-07T14:12:04","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/07\/one-step-forward-and-two-steps-back-as-administrations-rise-again\/"},"modified":"2025-06-07T09:12:04","modified_gmt":"2025-06-07T14:12:04","slug":"one-step-forward-and-two-steps-back-as-administrations-rise-again","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/07\/one-step-forward-and-two-steps-back-as-administrations-rise-again\/","title":{"rendered":"\u2018One step forward and two steps back\u2019 as administrations rise again"},"content":{"rendered":"
\n

The number of administrations jumped by a third in May compared with April.<\/p>\n

The latest monthly data from Creditsafe shows that 28 firms entered into administration in May \u2013 a rise of 33 per cent compared with April, which saw 21 failures.<\/p>\n

May\u2019s figure is a 17 per cent rise on the same month last year, when 24 administrations were recorded.<\/p>\n

In the first five months of 2025, there was a 5 per cent year-on-year increase in construction sector administrations, with 122 compared to 116.<\/p>\n

One of the biggest names to go under in May was London groundworks and reinforced concrete frame specialist Corbyn Construction<\/a>.<\/p>\n

The firm posted a \u00a3435,000 pre-tax profit from a \u00a332.8m turnover in its most recent accounts, covering the year to 30 June 2023.<\/p>\n

It recorded revenue of \u00a346.1m and made a pre-tax loss of \u00a35.1m the year before.<\/p>\n

\u201cDifficult contracts from the pandemic period have finished and material prices are now stable and, in most cases, falling,\u201d Corbyn said in the 2023 accounts.<\/p>\n

The contractor, based in Gallions Reach in east London, carried out groundworks and delivered concrete frames for jobs in the capital, including for major mixed-use and residential buildings up to 29 storeys high.<\/p>\n

Its clients included Galliford Try, Hill, Weston Homes, Telford Homes, Mulalley, Higgins and Taylor Wimpey, according to an overview of projects on its website, which is still live.<\/p>\n

Another firm to go under in May was commercial building manufacturer Jans Offsite Solutions<\/a>.<\/p>\n

The Antrim-based firm is a subsidiary of Jans Holdings Ltd, which is still operating.<\/p>\n

Its latest accounts, for the year ending 31 December 2023, said the firm had experienced losses but they were part of an overall strategic plan to grow and develop the business, and the directors expected the company to generate a profit in the next 18 months.<\/p>\n

The majority of the businesses entering administration in May were based in the South, with 18 firms going under in the region.<\/p>\n

Of the others, eight were based in Northern England, one in Northern Ireland and one in Scotland.<\/p>\n

Outlook<\/h3>\n

Gareth Belsham, director of Bloom Building Consultancy, told Construction News<\/em> that measures to help the industry had come too late.<\/p>\n

\u201cIt feels like a case of one step forward and two steps back on the insolvency front,\u201d he said.<\/p>\n

\u201cEven though May saw some positive news for the construction industry \u2013 a cut in the Bank of England base rate and some blockbuster new order figures for Q1 \u2013 these came too late for dozens of construction firms that went under during the month.<\/p>\n

\u201cIn part this is because of the length of time it takes a heavily indebted firm to fall into administration. While lack of cash is likely to have delivered the final blow to most of those that failed in May, many will have been grappling with insufficient orders and dangerously tight margins for some time.\u201d<\/p>\n

Peter Vinden, director of advisory services at Leonard Curtis, said the month-on-month rise in the number of administrations in May showed that there were still problems within the construction sector.<\/p>\n

\u201cOrders for new commercial buildings are down. It appears that a combination of government policies, principally the rise in employers’ National Insurance contributions<\/a>, [the] threatened introduction of new employment laws, increased inheritance taxes and the raiding of private pensions is causing investors in the commercial sector to be hesitant,\u201d he said.<\/p>\n

\u201cThere is a lot of \u2018sitting on hands\u2019 at the moment. Contractors are fighting with each other to win work in the commercial sector and having to cut tender prices without being able to pass on these cuts down their supply chains.<\/p>\n

\u201cI anticipate UK construction having a tough 2025 and I predict that there will be more failures to come in our sector.\u201d<\/p>\n

Atul Kariya, head of real estate and construction at MHA, said the news did not bode well for the UK economy.<\/p>\n

\u201cWe are increasingly seeing that the combination of a high tax burden and complex and onerous regulation is both disincentivising and delaying companies from investing in new staff and development projects,\u201d he said.<\/p>\n

\u201cIt is therefore no surprise that we\u2019re seeing stagnant growth and falling confidence across the construction sector. Given that construction often acts as a leading indicator for the wider economy, this does not bode well for the UK\u2019s broader economic outlook for 2025.\u201d<\/p>\n

However, Belsham believes the \u00a32.5bn of new orders placed across the construction industry in the first quarter of this year may provide hope.<\/p>\n

\u201cWhile we\u2019re far from turnaround territory, the economic backdrop is becoming a little more benign and this should give some struggling firms a chance to reset and put themselves on a more sustainable footing,\u201d he added.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Company name<\/strong><\/td>\nLocation<\/strong><\/td>\nDate of administration<\/strong><\/td>\nDocuments filed<\/strong><\/td>\nDescription of company activities<\/strong><\/td>\n<\/tr>\n
BC LEEDS DEVCO LTD<\/td>\nLondon<\/td>\n25 May<\/td>\nAppointment of receiver\/manager<\/td>\nBuying and selling of own real estate<\/td>\n<\/tr>\n
BISHOPS COURT (TORQUAY) LTD<\/td>\nTorquay<\/td>\n07 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
BLEUPROPERTY LTD<\/td>\nLondon<\/td>\n13 May<\/td>\nAppointment of receiver\/manager<\/td>\nConstruction of domestic buildings<\/td>\n<\/tr>\n
BOWDEN ROAD DEVELOPMENTS LTD<\/td>\nBristol<\/td>\n09 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
BUILDING FOR HUMANITY CIC<\/td>\nAccrington<\/td>\n05 May<\/td>\nAppointment of receiver\/manager<\/td>\nConstruction of domestic buildings<\/td>\n<\/tr>\n
CORBYN CONSTRUCTION LTD<\/td>\nLondon<\/td>\n21 May<\/td>\nIn administration<\/td>\nConstruction of other civil engineering projects n.e.c.<\/td>\n<\/tr>\n
DACO CONSTRUCTION (NORFOLK) LTD<\/td>\nNorfolk<\/td>\n20 May<\/td>\nIn administration<\/td>\nOther building completion and finishing<\/td>\n<\/tr>\n
DJC LEISURE LTD<\/td>\nSouthport<\/td>\n06 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
HIGHLANDS HIDEAWAY LTD<\/td>\nSouthport<\/td>\n07 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
HOSPITAL PIPELINE INSTALLATIONS LTD<\/td>\nPaisley<\/td>\n14 May<\/td>\nIn administration<\/td>\nOther specialised construction activities n.e.c.<\/td>\n<\/tr>\n
JANS OFFSITE SOLUTIONS LTD<\/td>\nAntrim<\/td>\n22 May<\/td>\nIn administration<\/td>\nConstruction of commercial buildings<\/td>\n<\/tr>\n
LANE BRITTON AND JENKINS LTD<\/td>\nCheltenham<\/td>\n16 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
LW&P (BICKNACRE) LTD<\/td>\nNorfolk<\/td>\n21 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
MARDEN NEW HOMES LTD<\/td>\nWestcliff-on-Sea<\/td>\n22 May<\/td>\nAppointment of receiver\/manager<\/td>\nConstruction of domestic buildings<\/td>\n<\/tr>\n
MARGREITER LTD<\/td>\nLondon<\/td>\n21 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
MARINE DRIVE LTD<\/td>\nLondon<\/td>\n02 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
MHL2 LTD<\/td>\nBlyth<\/td>\n16 May<\/td>\nIn administration<\/td>\nRepair of other equipment<\/td>\n<\/tr>\n
MOXIE DEVELOPMENTS LTD<\/td>\nLondon<\/td>\n12 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
PATERSON ASSOCIATES (NE) LTD<\/td>\nMiddlesbrough<\/td>\n15 May<\/td>\nIn administration<\/td>\nOther specialised construction activities n.e.c.<\/td>\n<\/tr>\n
PLB DEVELOPMENTS LTD<\/td>\nExmouth<\/td>\n01 May<\/td>\nAppointment of receiver\/manager<\/td>\nConstruction of domestic buildings<\/td>\n<\/tr>\n
RANDALL WATTS SPV 1 LTD<\/td>\nMaldon<\/td>\n23 May<\/td>\nIn administration<\/td>\nConstruction of commercial buildings<\/td>\n<\/tr>\n
RAPID RESIDENTIAL LTD<\/td>\nRichmond<\/td>\n27 May<\/td>\nIn administration<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
ROGERS CORY PARTNERSHIP LTD<\/td>\nHook<\/td>\n01 May<\/td>\nIn administration<\/td>\nConstruction of other civil engineering projects n.e.c.<\/td>\n<\/tr>\n
SALTERNS ROAD DEVELOPMENT LTD<\/td>\nPoole<\/td>\n02 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
VILACREST RESIDENTIAL LTD<\/td>\nLondon<\/td>\n22 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
WMS ENTRANCE SYSTEMS LTD<\/td>\nElland<\/td>\n21 May<\/td>\nIn administration<\/td>\nOther construction installation<\/td>\n<\/tr>\n
ZENWISH LTD<\/td>\nLondon<\/td>\n22 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n
ZENWISH RESIDENTIAL LTD<\/td>\nLondon<\/td>\n22 May<\/td>\nAppointment of receiver\/manager<\/td>\nDevelopment of building projects<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Read More<\/a>
\n Nicola Harley<\/p>\n","protected":false},"excerpt":{"rendered":"

The number of administrations jumped by a third in May compared with April. The latest monthly data from Creditsafe shows that 28 firms entered into administration in May \u2013 a rise of 33 per cent compared with April, which saw 21 failures. May\u2019s figure is a 17 per cent rise on the same month last<\/p>\n","protected":false},"author":1,"featured_media":853950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38653,3704],"tags":[],"class_list":{"0":"post-853949","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-one","8":"category-forward"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/853949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=853949"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/853949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/853950"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=853949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=853949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=853949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}