Written ByKeith Steven
Managing Director
Keith is the Managing Director of KSA Group Insolvency Practitioners which has been established for 25 years. The company has undertaken more CVA led rescues than any other firm. Read our case studies to see how.
Every business is different, however there are particular issues that construction businesses face which are unique to the sector.
Often with low margins and tough trading conditions, cash flow can be a problem. Below is a list of problems we’ve seen happen in the industry:
It might be that an additional loan is not what is required…. As turnaround practitioners, our specialists can help tackle these issues with you to get your construction business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improved financial reporting, Time to Pay deals, CVAs and pre-pack administrations. We can also find finance for construction companies in distress.
We also have industry specific turnaround experts who can act as non executive directors, chairman or turnaround managers. We have turned around construction companies from £500k to £25m sales.
Call us on 0800 9700539 for free expert advice and a talk through your options. We can visit you onsite to discuss your specific situation.
Monthly Insolvency Statistics: February 2025
After seasonal adjustment, the number of registered company insolvencies in England and Wales was 2,035 in February 2025, 3% higher than in January 2025 (1,978) but 7% lower than the same month in the previous year (2,188 in February 2024). Company insolvencies over the past year have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels. Company insolvencies in February 2025 consisted of 393 compulsory liquidations, 1,520 creditors’ voluntary liquidations (CVLs), 115 administrations and 7 company voluntary arrangements (CVAs). There were no receivership appointments. Compulsory liquidations were higher than in January 2025, while CVLs, administrations and CVAs were lower. The (seasonally adjusted) number of compulsory liquidations in February 2025 was the highest monthly number since September 2014.One in 191 companies on the Companies House effective register (at a rate of 52.4 per 10,000 companies) entered insolvency between 1 March 2024 and 28 February 2025. This was a decrease from the 57.6 per 10,000 companies that entered insolvency in the 12 months ending 29 February 2024. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.CVLsIn February 2025, CVLs accounted for 75% of all company insolvencies. The number of CVLs decreased by 2% from January 2025 and was 13% lower compared to the same month last year (February 2024) after seasonal adjustment.In 2024, the number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.Compulsory liquidationsSeasonally adjusted compulsory liquidations in February 2025 were 41% higher than in January 2025 and 49% higher than in February 2024. In recent months, compulsory liquidations have escalated. The greatest monthly number since September 2014 was February 2025.Compulsory liquidations rose 14% from 2023 to 2024, the highest amount since 2014. This increased from record lows in 2020 and 2021, despite constraints on statutory demands and winding-up petitions (leading to compulsory liquidations).AdministrationsThe number of administrations in February 2025 was 18% fewer than in January 2025 and 27% lower than in February 2024, after seasonal adjustment.In 2024, administrations rose 2% from 2023 and were slightly higher than 2015–2019 totals. Since 2022, administrations have increased from an 18-year low in 2021 during the COVID-19 epidemic.CVAsThe number of CVAs was 42% lower in February 2025 than February 2024 and 50% lower than in January 2025. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average.What is causing the changes?The most common creditor in any insolvency is HMRC. In the last few months, having held back for many years as companies have recovered from the recent headwinds, HMRC is now losing patience with companies that owe tax.
Read
The Original Factory Shop Looking at a CVA
The Original Factory Shop (TOFS), bought by Modella Capital just four weeks ago, is working with advisers at Interpath on a potential company voluntary arrangement, Sky News has reported.Modella is looking at a CVA in order to close underperforming businesses and impose rent reductions on others.Potential reorganisation suggestions are also believed to include a significant distribution centre.There will undoubtedly be some job losses among TOFS's employees, which was estimated to be around 1,800 at the time of last month's takeover, if any so-called "landlord-led" CVA caused store closures. What is a landlord led CVA? A CVA allows the company to terminate its liabilities under a lease provided that the majority of creditors by value (75%) agree. Landlords who do not have large arrears or rent owed to them are permitted in law to vote to the value of only 12 months rent. In the majority of cases, landlords make up a small proportion of the total debts so they are routinely out voted by suppliers, HMRC etc.This explains why many retailers use this as a way of reducing rental costs as they can make up a high proportion of the companies costs but not their liabilities. So in other words they can get rid of loss making stores and not be on the hook for the 5 year lease. By applying pressure on landlords, by threatening a CVA, they can get rent reductions on premises that might otherwise have to close.TOFS, which sells beauty brands such as L'Oreal, the sportswear label Adidas and DIY tools made by Black & Decker, has about 180 outlets.We will keep this page updated once we know more.
Read
Atlas Leisure Homes Goes Into Administration
After a period of challenging trading, East Yorkshire caravan manufacturer, Atlas Leisure Homes, has appointed administrators at FRP Advisory and laid off 180 employees.From its base in Hull, Atlas has been manufacturing static caravans and vacation homes for almost 50 years.It recorded turnover of £68.8m in its most recent set of accounts, covering the year ending 30 September 2023, with a pre-tax profit of £69,000.The business, which had a sharp rise in demand during the epidemic and constructed a second manufacturing facility in 2020, had experienced a drop in its order book at a time when operational expenses had skyrocketed.The company has undergone two more reorganisation exercises in the last two years, and the decision to appoint administrators comes after efforts to obtain new financing.With the administrators now assisting staff members with applications to the Redundancy Payments Service, around 180 positions within the company have been eliminated.A few employees have been kept on board to help the administrators conduct a an orderly wind up of the company.“The caravan and holiday homes industry benefitted significantly from the boom in staycations during and after the Covid-19 pandemic.“However, with demand falling away and an influx of new homes having come to the market, operating conditions have become extremely difficult for manufacturers who are contending with the dual challenge of increased costs.“Despite the best efforts of the management team, unfortunately the business was unable to continue trading solvently without new investment.“Regrettably this has meant the loss of a long-standing business and employer in the community.” stated Mark Hodgett, partner at FRP and co-administrator of Atlas Leisure Homes.However, operating conditions have gotten very tough for producers, who are also facing the simultaneous problem of rising costs, as demand has decreased and a flood of new homes has entered the market."Unfortunately, despite the management team's best efforts, the company could not continue to operate profitably without further funding."Unfortunately, this has resulted in the loss of a long-standing company and employer in the neighbourhood.""We, alongside our competitors, have shared in the market downturn that followed the pandemic in what has been a very challenging few years for everyone in the industry." stated Steven McGawn, managing director of Atlas Leisure Homes."The Board and shareholders had enlisted outside investors to help the business thrive, and we had created a lot of interest in moving the company ahead.But in the end, a solution couldn't be reached, and we regretfully had to put the company into administration."I know a lot of people will look back on our more than 50 years of trading with great pride and fondness, so it is a very disappointing time."
ReadMonthly Insolvency Statistics: January 2025
After seasonal adjustment, 1,971 companies became insolvent in January 2025, up 6% from December 2024 and 11% from January 2024. After three years, the average absolute change between consecutive months has been 12%.After declining in the early 2000s, company insolvencies soared during the 2008-09 crisis. Government support measures during the COVID-19 epidemic in 2020 and 2021 reduced monthly volumes to their lowest ever. Creditor Voluntary Liquidations (CVL) numbers rose above pre-pandemic levels in 2022, although compulsory liquidations and administrations remained low. CVLs reached a record high and compulsory liquidations matched 2015-19 levels in 2023, bringing insolvency numbers to a 30-year high. The 2024 total was slightly lower than 2023 because CVLs decreased more than other insolvency categories.Figure 2: Company insolvencies during the second half of 2022 have reached 2008-09 recession levels. English and Welsh monthly firm insolvencies by type, January 2000–January 2025, seasonally adjusted.CVLs CVLs represented 78% of company insolvencies in January 2025. CVLs rose 9% from December 2024 and 14% from January 2024 after seasonal adjustment. Compulsory liquidations The seasonally adjusted number of compulsory liquidations in January 2025 was 5% fewer than in December and January 2024. Administrations January 2025 saw 10% more administrations than December 2024 and 9% more than January 2024 following seasonal adjustment. CVAs The number of CVAs decreased by 13% in January 2025 compared to January 2024 and 18% from December 2024. Numbers remain low compared to historical levels. There were 9% more CVAs in 2024 than in 2023 and approximately 80% more than in 2022, which had the lowest yearly total since 1993. Despite this increase, 2024's number was just under 60% of the 2015–2019 average.
Read
In The Style in Administration
In The Style has gone into administration. FTS Recovery are the administrators.Adam Frisby launched the business in 2013.The fast-fashion store has suffered a decline in its financial performance in recent years, despite aligning itself with several well-known social media influencers.The future of its remaining employees, as well as its brand and other assets, will be uncertain following its collapse into administration.According to one source, the process could result in a pre-pack administration that involves Baaj Capital.Before announcing his most recent departure last year, Mr. Frisby made at least two appearances back at the company.In March 2023, Baaj Capital purchased In The Style, which had previously been valued at over £100 million, for just over £1 million.In 2019, it went public on the junior AIM market in London.
Read