Administrators from Begbies Traynor were appointed to Ardmore Construction Limited last week as part of a restructuring of the London-based Ardmore Group.
After pivoting its main contracting activities from Ardmore Construction Limited (ACL) to the recently established Ardmore Construction Group Limited, ACL is now considered a legacy business 鈥� it has not taken on new work since 2021.
ACL has not taken on new work since 2021 and has been weighed down by long-running post-Grenfell cladding-related litigation regarding projects completed up to 20 years ago. In the case of BDW Trading Limited v Ardmore Construction Limited [2024] EWHC 3235, the Technology *& Construction Court upheld an adjudicator鈥檚 decision requiring Ardmore to pay 拢14m to BWT (a Barratt Developments company).
ACL鈥檚 most recent accounts show a 拢14.1m pre-tax loss on turnover of 拢313m in the year to September 2023. In the same year Ardmore Construction Group made a loss of 拢16.5m on 拢401m turnover. Neither company has yet filed accounts for 2024.
With ACL now being wound up, Ardmore Construction Group is forecasting a return to profit in the current financial year, with a projected post-tax profit of 拢2.5m for the year to September 2025, following the close-out of historic liabilities and a renewed focus on delivery through its specialist construction companies.
Over the past six months, the group has worked to reduce ACL鈥檚 remaining liabilities, including negotiating the closeout of multiple performance and retention bonds.
Chairman and owner Cormac Byrne said: 鈥淭he last two years have tested the entire industry, but we鈥檝e emerged stronger. We鈥檝e taken tough decisions, restructured how we work, and focused on delivery that we know we can control, which has brought us back to profit.
鈥淎CL played a major role in our history, but it no longer fits how the group operates. The decision to close it has been taken and we鈥檙e now just drawing that chapter to a close, with minimal disruption to the wider business.鈥�
He said that there would be no impact on live contracts or current projects as a result of ACL's closure.
Got a story? Email news@theconstructionindex.co.uk
