Ardmore’s construction business goes into administration

Ardmore has confirmed that its construction business has gone into administration with the firm pointing the finger at a recent High Court judgement for its collapse.

The London contractor said its construction group, which includes Ardmore Construction Group, Ardmore Major Projects, Regeneration, Fit-out, Hotels & Commercial and Landmark, “has been placed into administration” with staff turning up for work at the affected businesses this morning told to go home.

In a statement, it added: “The administration follows the profound impact of the recent Building Liability Order judgment relating to the Admiralty Quarter project, which completed in 2009.

“The judgment has affected client confidence, payment terms and certified values across a number of live projects, materially affecting the construction group’s ability to continue trading in the normal way.”

Last month, a High Court judge ordered several Ardmore firms to pay Crest Nicholson nearly £15m in a case relating to cladding at 19 residential buildings at Admiralty Quarter in Portsmouth.

The firms argued that they could not afford to pay and would be at risk of insolvency if they did.

The High Court case ruled that Building Liability Orders introduced under the Building Safety Act 2022 could be used to extend liability for building defects beyond the original contractor to parent companies and associated businesses within the same corporate group.

Ardmore said that the Ardmore Group “has not entered into administration but has applied to enter into a moratorium process, which will allow it to continue trading while its position is reviewed”.

This morning, Ardmore Group applied for a company moratorium – designed to give it temporary protection from creditor action while rescue options are explored.

The moratorium application names two insolvency practitioners from BTG as respondents. BTG was appointed administrator of original construction business, Ardmore Construction Ltd, which went into administration last summer.

In its statement, Ardmore said: “This [moratorium] step is intended to allow Ardmore to continue preparing its appeal against the BLO judgment. Earlier this week, Ardmore was granted permission to appeal to the Court of Appeal, with the Court also granting expedition given the importance of the issues raised.

“Ardmore believes the appeal raises issues of wider public importance for the construction industry, including the circumstances in which a Building Liability Order may be made and the extent to which liabilities may be imposed on group companies in respect of historic projects.”

Ardmore, which is facing several claims from housebuilders including Bellway and Barratt as well as Thames Valley Housing Association, is working on several jobs across the capital including a £154m residential scheme at Shoreditch Park called Britannia which is nearing completion.

Earlier this year, Ardmore said it expected to turn in a profit for 2025 after the firm racked up a pre-tax loss of £42m for the year to September 2024.

Accounts filed at Companies House show the firm’s losses for the period widened from the near £11m loss it made in 2023. Turnover for the period was down 14% to £346m with year-end cash standing at £27.6m.

An Ardmore spokesperson added: “This is a deeply disappointing outcome for the construction group, its employees and its stakeholders.

“Our focus is now on preserving value in the wider Group, protecting the continuing businesses where possible, and pursuing the appeal against a judgment which we believe raises important questions for the wider industry.”