Groundworks and civil engineering contractor Caldwell Construction has entered administration following the filing of a notice of intention to appoint administrators earlier this week.
PKF Littlejohn Advisory has now been appointed as administrator to the business. Caldwell Construction employs more than 400 people across operations in Stoke-on-Trent and Warrington and reported revenue of approximately £58m for the year to March 2025.
The company’s most recent accounts, filed at Companies House in March, showed a loss of around £170,000 for the 2024/25 financial year, compared with a profit of £2.9m in the previous year. Despite the deterioration in profitability, directors stated in the accounts that the business was “performing well”, while noting margin pressure arising from increased material and labour costs, the completion of fixed-price legacy contracts, and a slowdown in the housing market.
However, Paul Smith, partner at PKF Littlejohn Advisory UK LLP, said this week that wider industry pressures had significantly affected the business in recent weeks.
He said “challenging trading conditions” had placed “significant strain on cashflow and operations at Caldwell”.
Smith added:
“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.
“Unfortunately, despite extensive efforts, it was not possible to secure a way forward that would allow the company to continue trading outside of an insolvency process.”
Founded in 2007, the company specialises in foundations, sewers, storm water attenuation systems, hard and soft landscaping, and the construction of carriageways and footpaths.
Joint Administrator Oliver Collinge said:
“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.”
As Caldwell Construction enters formal insolvency, stakeholders often face significant uncertainty. Here is a breakdown of the legal framework and what it means for those affected.
Administration is a powerful statutory process governed by the Insolvency Act 1986. It is triggered when a company is insolvent and can no longer meet its debts. An independent Licensed Insolvency Practitioner (IP) is appointed to take control from the directors. A key feature is the statutory moratorium a legal “shield” that instantly stops all legal actions, such as winding-up petitions or bailiff visits, providing the “breathing space” needed to rescue the business or achieve a better result for creditors than immediate closure.
The law dictates a strict hierarchy for the distribution of funds. Fixed charge holders (typically banks with security over property) are paid first. Once the administrator’s fees are covered, preferential creditors are next; this includes employees (for specific arrears) and HMRC for taxes like VAT and PAYE. Following these are floating charge holders, and finally, unsecured creditors which include trade suppliers and customers who are at the back of the queue and frequently receive only a small fraction of their debt.
Entering administration does not mean all jobs are instantly lost. For the first 14 days, the administrator assesses the company’s viability and may make redundancies. If a member of staff is kept on past this 14-day window, the administrator “adopts” their contract, meaning their ongoing wages and rights become a priority expense. Those made redundant can claim for unpaid wages and notice pay via the Redundancy Payments Service if the company has insufficient assets to cover these costs.
Suppliers and customers are generally unsecured creditors. Suppliers should stop granting credit under old agreements and negotiate “pro-forma” (upfront) terms for any new supply to the administrator.
Written ByRobert Moore
Marketing Manager
Rob has over two decades of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at RMT to develop strategic marketing programmes to support the business plan and drive more company rescues.
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