The construction industry has faced challenging conditions, experts say (Image: Getty Images)
A UK construction company has gone into administration after facing financial difficulties. Caldwell Construction employs over 400 people, by March 2025, it had a revenue of around £58million.
The company is based in the town of Warrington and in the city of Stoke-on-Trent. The contractor provides groundworks services for several national housebuilders. Its administrator has been appointed as PKF Littlejohn Advisory.
The company has faced strain on cashflow (Image: Getty Images)
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Paul Smith, a partner at PKF Littlejohn Advisory, said: “The construction sector has faced challenging trading conditions over recent years, including increasing costs, delays to schemes and wider market uncertainty.
“These pressures were exacerbated at Caldwell in recent weeks, placing significant strain on cashflow and operations.
“The PKF Littlejohn Advisory team in Manchester and Leeds had worked closely with Caldwell’s management over the past few months to explore all available options and potential solutions for the business.
“Unfortunately, despite extensive efforts, it was not possible to secure a way forward that would allow the company to continue trading outside of an insolvency process.”
Last year, even though the company turned over £58million, its profit was less than £1million.
The company had a revenue of around £58million (Image: Getty Images)
Nick Stockley, partner at law firm Mayo Wynne Baxter, said there is a chance the company could be rescued and restructured, but there will likely be a negative impact on the supply chain, reports Construction Management.
“As Caldwell Construction Limited has gone into administration, there will be a better chance of either rescuing the company as a going concern or providing a better return to creditors than if the company went into liquidation,” Stockley said.
“In a situation like this, the administrators will see if there is some chance that the company can be rescued. As the company is making an annual revenue of £58.4m there appears to be a viable business there.
“However, the company may be suffering from significant cashflow difficulties which leave it ‘unable to pay their costs as they fall due’.
“The process of administration gives the company protection from immediate legal action whilst the administrators consider how the business can be restructured.”
Caldwell Construction has worked with major national housebuilders and developers including the Vistry Group, who confirmed Caldwell operatives have been pulled off its sites.
A Vistry spokesperson said: “We have been in consultation with Caldwell Construction and it is unfortunate that this action has been taken.
“To ensure there are no delays to construction programmes, we are in discussion with alternative subcontractors from our preferred supplier listings to continue the works.”
Caldwell Construction has sponsored a stand at its local team, Stoke City FC’s, Bet365 Stadium since 2019.
The groundworks and civil engineering firm has faced difficult trading conditions over recent years.