PKF Littlejohn to oversee administration of Caldwell Construction
PKF Littlejohn Advisory has been appointed administrator of Caldwell Construction. The firm will oversee the sale of its remaining assets, after cash-flow difficulties overwhelmed the firm.
The UK has one of the highest rates of builder collapses in the G7, and some of the worst payment times – resulting in poor cash-flow throughout the supply chain. While larger construction firms are working to preserve working capital to deal with this, it is especially bad news for the small businesses who make up 98% of the construction sector.
With a fall in output – the S&P Global UK Construction Purchasing Managers’ Index argued that November saw output sink to its lowest level since 2020 – and Turner & Townsend forecasting in its latest UK Market Intelligence report that tender prices in real estate will lift by 3.5% each year throughout 2026-28, a construction crunch may be on the horizon.
Amid these pressures, a building firm based in Stoke-on-Trent and Warrington has fallen into administration, putting more than 400 jobs at risk. Founded in 2007, Caldwell Construction provides groundworks services for several national housebuilders, with revenue to March 2025 of around £58 million.
The firm saw revenue fall from £65.4 million a year earlier – however, it recovered from an operating loss of nearly £2.2 million in 2024, to post an operating profit of around £936,000 in its most recent accounts. But with its cashflow issues reportedly worsening over recent weeks, the firm was left with no option but to appoint administrators from PKF Littlejohn Advisory.
Paul Smith, one of the joint-administrators, said, “The construction sector has faced challenging trading conditions over recent years, including increasing costs, delays to schemes and wider market uncertainty. These pressures were exacerbated at Caldwell in recent weeks, placing significant strain on cashflow and operations.”
The PKF Littlejohn Advisory team in Manchester and Leeds had worked closely with Caldwell’s management over the past few months to explore all available options and potential solutions for the business. Ultimately, though, it was “not possible to secure a way forward that would allow the company to continue trading outside of an insolvency process.”
Joint-administrator Oliver Collinge added, “The directors at Caldwell have taken the difficult decision to place the company into administration. Our immediate focus is now on supporting employees and stakeholders while we assess the position of the business and its assets.”
