Loss-making jobs, client delays and wet weather helped send historic contractor Jerram Falkus under, new report says

The directors of historic contractor Jerram Falkus had concluded the firm “was unlikely to have a long-term future” months before it went into administration, a report into its collapse has said.

FRP Advisory was appointed administrator for the 140-year-old firm in February, bringing to an end a history that stretched back to 1884.

At the time it collapsed, the firm, which was based in Shoreditch, had 40 staff while in its last set of accounts for the year to July 2024, had a turnover of £50m while pre-tax losses narrowed from £5.4m in 2023 to £342,000.

In its report, FRP said: “A number of contracts had suffered from delays, planning constraints, limited margins and high working-capital demands. By mid-2025, the directors concluded that the company was unlikely to have a long-term future.”

At the time of the administration, FRP said Jerram Falkus had six contracts half of which “had moved into loss-making and cash-negative positions”.

It said the firm was also hit by the wet weather of the first weeks of the new year stalling progress while the firm was hit by client delays and changes. FRP said: “Delays on one contract required significant funding and had squeezed working capital, with £1.8m of costs incurred but have not yet reimbursed by the client.”

Jerram Falkus was also hit by new contract awards being delayed, FRP said, while £500,000 of retentions began falling due. FRP said the firm had concluded that it was facing a £1.8m cash deficit in March and April this year. “The directors concluded that the company would be unable to fund the cash shortfall,” it added.

In all, Jerram Flakus collapsed owing £10m to creditors including £8.2m to trade creditors and just over £1m to employees. HMRC is owed £737,000.

Unsecured creditors have been told there will be sufficient funds to recoup some of the money they are owed.