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.
Written ByKeith Steven
Turnaround Director
Keith is the Turnaround Director of RMT Accountants & Business Advisors. Prior to being acquired by RMT his company KSA Group has undertaken more than 300 CVA led rescues. Read our case studies to see how.
Poundland In Administration Move
Poundland has filed an intention to appoint administrators according to multiple sources. The main purpose of this will be to ensure that the company has a breathing space of at least 10 days to try and sell the business. The owners, Gordon Brothers, who bought the company for £1 back in 2025, are looking to sell the business. If the sale falls through, it is likely to enter insolvency. The company did look at a possible CVA earlier but this does not appear to be on the cards now. The Martin Group are reported to be the only buyer interested in a sale as a going concern. So if it fails then administration is likely. According to Sky the owners have just parachuted in 3 directors to the board including the restructuring expert Stephen Welch. A Poundland spokesman said: “We confirm that Barry Williams, Andy Bond and the Poundland leadership team have been working with the Martin Property Group on an MBO. “While the Martin Property Group is their preferred partner, the leadership team’s sole intention is to work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that’s already taking shape.” Poundland employs 13,000 people and has 600 stores. Since the cost of living crisis, there has been strong competition from other discounters like B&M and Poundstretcher. Poundstretcher themselves used a CVA to reduce costs. They exited in 2022 paying just 12p in the £1 to its unsecured creditors If such a big retailer were to fail, this would send shockwaves through the sector and would be a political headache for the Labour Government.
ReadWhat is Business Asset Disposal Relief?
Business Asset Disposal Relief which allows you to pay less capital gains tax, at 18% on gains of all qualifying assets which are sold. It is applied when you sell your business, and usually in a Members Voluntary Liquidation (MVL). Capital Gains Tax is the tax on profit when you are selling something which has increased by value. Important Note; The Chancellor has announced in the 2026 Budget a new "Founders Relief" that will allow a lifetime allowance of £10m to be taxed at just 10% on the disposals of shares in a high growth business. Exactly how this will work is not clear yet. Am I eligible for the relief? To qualify for Business Asset Disposal Relief, you must meet one or more of the following criteria: You must be disposing all or a part of a business, where you were a sole trader or business partner. Even if you dispose of the assets after, you are still eligible. However, you must own the business for over a year before you sell it and if you are closing the business, the assets must be sold within 3 years. You have at least 5% shares, securities or voting rights within the company being sold. You are also eligible if you have had the chance to buy your shares at least a year before the sale. For this, you must have been an employee of the firm for at least a year, and the company must be one which focuses on trading, instead of those which involve little trading, for example, those that focus purely on investment. You lent an asset to the business and it is being sold. This only applies if your assets were used for a year before the shares were sold, or if you have already sold 5% of your part of the business or shares. You’re selling shares which you got through an Enterprise Management Incentive scheme, after the 5th April 2013. How do I work out the tax I will have to pay? Work out the gains of all the qualifying assets Add all the gains together (deduct any losses) to get the total taxable gain available for Business Asset Disposal Relief Deduct any tax-free allowance You will pay 18% tax on what is left. Following the first Labour Budget it has been it has been confirmed that the relief remains but from April 2027 the rate will go up to 18% from the current 10%
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What Is A Statutory Demand?
Facing an HMRC winding up petition? Company Rescue provides urgent, confidential support to stop compulsory liquidation. Speak to a licensed insolvency practitioner today.
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Cambridge Analytica Is Put Into Administration
Originally published in 2018. Re-edited and updated for clarity.
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Torsion Projects Goes Into Administration
Leeds-based construction firm Torsion Projects Limited has ceased trading and entered administration, resulting in the redundancy of all 54 employees. Established in 2015, the company specialised in the construction of care homes across the UK and formed part of the wider Torsion Group. The company had experienced sustained cashflow difficulties following the termination of several contracts, leaving it unable to cover its operating costs. Despite efforts by the directors to secure fresh investment, the business was unable to continue trading. All construction sites were handed back to developers or funders before James Clark and Rick Harrison of Interpath were appointed as joint administrators. James Clark said the company's financial difficulties had become insurmountable and confirmed that support was being provided to affected employees. The collapse follows the administration of fellow group company Torsion Construction Limited in July, which provided contracting services to Torsion Developments in the student accommodation sector. However, Torsion Developments Limited and Torsion Care Limited are not in administration
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