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 Risk
Poundland is at risk of going into administration; it has been reported. 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 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.
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Guide to Pre Pack Administration Process and Procedures
Pre pack administration is an insolvency procedure which allows an insolvent company to sell its assets to a buyer before appointing administrators. It’s a powerful, legal way of selling the business on to a trade buyer or third party.
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The Ultimate Company Voluntary Arrangement (CVA) Frequently Asked Questions Guide
These questions and answers will give more detailed background to the CVA technique. If you have any further general or specific questions email us.
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My Company Can’t Pay Its VAT – What Are The Options?
What happens if we can't pay our VAT bill to HMRC on time? What can we do? There are a number of options that you can consider such as a debt management plan, time to pay arrangement or even a CVA if your business is viable but just behind on HMRC tax payments. Most importantly though you must act.
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Company Insolvencies Fall Back In August 2026
There were 1,946 company insolvencies in August 2026, 1% higher than in July 2026 but 3% lower than in August 2025. August 2026 saw lower numbers of CVLs but higher compulsory liquidations and administrations than July 2026. CVLs In August 2026, CVLs accounted for 74% of all company insolvencies. The number of CVLs was 4% lower than in July 2026, and 9% lower than in August 2025. The average monthly number of CVLs in the first eight months of 2026 was 7% lower than the average monthly number in 2025. In 2025 CVL volumes slightly decreased by 2% from 2024 and by 10% from the record-high number registered in 2023. The past four years have seen the highest four numbers of CVLs 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 liquidations The number of compulsory liquidations in August 2026 was 8% higher than in July 2026 and 5% higher than in August 2025. The average monthly number of compulsory liquidations in the first eight months of 2026 was 5% lower than the 2025 monthly average. In 2025, compulsory liquidations were at the highest levels since 2012, having increased by 15% compared to 2024 volumes. This continued an increase from record low levels seen in 2020 and 2021, while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations). Administrations The number of administrations in August 2026 was 44% higher than in July 2026 and 60% higher than in August 2025. The average monthly number of administrations in the first eight months of 2026 was 36% higher than the 2025 monthly average. This was driven by higher numbers between March and August 2026, when more than 250 connected companies in the Real Estate sector entered administration. What Is The Trend? Last month there was a slight uptick in the number of insolvencies but this now seems to have been reversed. This backs up some signs that insolvency volumes are easing compared with the very high levels seen in recent years. The average monthly number of CVLs during the first seven months of 2026 was 7% lower than the 2025 average, while compulsory liquidations were 6% lower. More broadly, average monthly company insolvencies during 2026 have been 6% lower than the monthly average recorded over the preceding three years. This has mainly been driven by lower numbers of CVLs. So, while insolvency levels remain high, the current picture looks more like a period of stabilisation than a renewed upward trend. The wider business environment has not changed significantly. Many companies continue to face pressure from employment costs, energy prices, borrowing costs, weak demand and historic debt. However, these pressures are not currently translating into a fresh surge in formal insolvencies. Our experience earlier in 2026 was that HMRC had increased enforcement activity against companies with tax debts that had been allowed to build up over a long period. This included winding-up petitions and greater use of enforcement officers. Such action can often become the immediate trigger for either a compulsory liquidation or for directors to place a company into creditors’ voluntary liquidation. For now, the August figures suggest that insolvency levels are in fact falling. What is very interesting is that there was a similar fall in August 2024. Keen readers will note that this was a couple of months prior to the first big labour budget under Rachel Reeves. We are seeing similar falls of insolvencies prior to the next big Budget under Any Burnham. Could it be that HMRC and other creditors are holding back a bit. It is more likely though that during periods of uncertainty big decisions are not taken that can have a knock on effect on the insolvency statistics.
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