A company in the construction sector has entered administration, jeopardizing over 400 jobs. Caldwell Construction Limited, established in 2007, has enlisted administrators from PKF Littlejohn Advisory. The firm specializing in groundworks and civil engineering operates from offices in Stoke-on-Trent and Warrington, Cheshire.
Paul Smith, a Partner at PKF Littlejohn Advisory UK LLP, highlighted the industry’s tough trading environment marked by rising costs, project delays, and overall market uncertainty. Despite generating a turnover of £58.4 million last year, the company struggled with an operating profit of less than £1 million. Smith noted that recent pressures at Caldwell exacerbated cashflow issues and operational challenges.
Efforts by PKF Littlejohn Advisory’s Manchester and Leeds teams to explore solutions for Caldwell were unsuccessful, leading to the company’s insolvency. Joint Administrator Oliver Collinge emphasized the directors’ decision to seek administration, with a focus now on assisting employees and stakeholders while evaluating the business’s status and assets.
In a separate incident, Consumer Energy Solutions, an energy provider in south Wales, also collapsed into administration, impacting nearly 300 employees. The company, with sites in Swansea and Rhondda Cynon Taf, abruptly ceased trading according to a notice on their website. The closure left staff reeling, with one employee expressing distress over the sudden job insecurity. Consumer Energy Solutions attributed the restructuring and job losses to the conclusion of the UK Government-backed Energy Company Obligation 4 scheme, which supported home energy efficiency upgrades like insulation and solar panels.