en.Wedoany.com Reported - London contractor Ardmore has confirmed its construction business has entered administration, blaming a recent High Court judgment.
The London-based company said its construction group, including Ardmore Construction Group, Ardmore Major Projects, Regeneration, Fit-out, Hotels & Commercial, and Landmark, has been placed into administration, with affected staff told to go home this morning. In a statement, the company said the administration was triggered by the far-reaching impact of a recent Building Liability Order judgment related to the Admiralty Quarter project, completed in 2009. The judgment has affected client confidence, payment terms, and certified valuations on several ongoing projects, effectively undermining the construction group's ability to continue trading in the normal way.
Last month, a High Court judge ordered several Ardmore companies to pay nearly £15m to Crest Nicholson over cladding issues on 19 residential blocks at the Admiralty Quarter project in Portsmouth. The companies argued they could not afford to pay and would face insolvency if forced to do so. The High Court ruled that under the Building Liability Order, introduced by the Building Safety Act 2022, liability for building defects could be extended from the original contractor to parent companies and related entities within the same corporate group.
Ardmore said the Ardmore Group has not entered administration but has applied for a moratorium process, which allows it to continue trading while its financial position is reviewed. This morning, the Ardmore Group applied for a company moratorium, aiming to provide temporary protection from creditor actions while exploring rescue options. The moratorium application named two insolvency practitioners from BTG as respondents, with BTG appointed as administrator of the original construction business, Ardmore Construction Ltd, which entered administration last summer.
In its statement, Ardmore said the moratorium is intended to allow the company to continue preparing its appeal against the Building Liability Order judgment. Earlier this week, Ardmore was granted permission to appeal to the Court of Appeal, which ordered an expedited hearing given the importance of the issues. The company believes the appeal raises issues of broad public importance for the construction industry, including the circumstances under which a Building Liability Order can be made and the extent to which liabilities can be imposed on group companies in relation to historic projects.
Ardmore is facing claims from several housebuilders, including Bellway, Barratt, and Thames Valley Housing Association. Meanwhile, the company is working on various projects across London, including a £154m residential project in Shoreditch Park, named Britannia, which is nearing completion. Earlier this year, Ardmore expected to return to profitability in 2025, following a pre-tax loss of £42m for the year ending September 2024. Accounts filed with Companies House show the company's loss for that period widened from a loss of nearly £11m in 2023, with turnover falling 14% to £346m and year-end cash at £27.6m.
An Ardmore spokesperson said this is an extremely disappointing outcome for the construction group, its employees, and stakeholders. The company's focus is now on protecting the value of the wider group, preserving ongoing operations where possible, and appealing a judgment they believe raises important questions for the broader industry.
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