Caldwell Construction, a groundworks specialist based in Stoke-on-Trent and Warrington, has entered administration following financial difficulties. The firm, which employed over 400 staff and subcontractors, reported a revenue of £58 million for the year ending March 2025.
Caldwell Construction’s Financial Struggles
On Thursday, PKF Littlejohn Advisory UK LLP was appointed as administrators after Caldwell’s management was unable to stabilize the company’s finances. Paul Smith, a partner at the advisory firm, stated that the construction sector is under significant pressure and Caldwell was no exception.
“The construction sector has faced challenging trading conditions over recent years,” said Smith. He highlighted issues such as rising costs, project delays, and general market uncertainty, all of which intensified in recent weeks at Caldwell, severely impacting cash flow and operations.
Efforts to Rescue Caldwell Construction
Despite months of discussions and efforts to explore potential rescue options, no viable solutions were found to avoid insolvency. Joint administrator Oliver Collinge emphasized that the decision to enter administration was tough but necessary.
“The directors at Caldwell have taken the difficult decision to place the company into administration,” Collinge noted. He added that their immediate focus is to support employees and assess the business’s assets.
Impact on Employees and Stakeholders
- Over 400 employees affected by the administration.
- Joint administrators are prioritizing support for staff.
- Future steps will focus on evaluating the company’s assets.
Challenges in the Construction Sector
The decision to enter administration reflects broader challenges faced by groundworks and civils contractors. Payment delays, escalating costs, and slowdowns in scheme progress continue to squeeze margins within the housebuilding supply chain.
Caldwell’s situation underscores the ongoing struggles in the construction industry as it navigates a turbulent economic landscape.
