£58m-turnover groundworks company enters administration

A prominent groundworks company based in Stoke-on-Trent and Warrington has fallen into administration amid longstanding adverse trading conditions. Caldwell Construction provides groundworks services for several national housebuilders and employs more than 400 staff.

In the year to March 31 2025, Caldwell Construction Limited reported turnover of £58.4 million, down from £65.4 million a year earlier, but recovered from an operating loss of nearly £2.2 million the previous year to post an operating profit of around £936,000.

Despite this improved performance, administrators said the company had been hit by the challenging conditions that have impacted the construction sector over the past few years, with its cashflow issues reportedly worsening over recent weeks.

The company filed a notice of intention (NOI) to appoint administrators earlier this week, subsequently appointing administrators from PKF Littlejohn Advisory.

Paul Smith, a partner at PKF Littlejohn Advisory UK LLP, 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.”

Smith added that PKF Littlejohn Advisory’s Manchester and Leeds teams had worked closely alongside the company’s management in recent months to explore potential solutions for the business.

"Unfortunately,” he continued, “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."

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."

In its most recent accounts, the company’s fixed assets were valued at around £13 million and current assets at £25.3 million, with total equity amounting to £14.8 million.

Caldwell Construction was founded in 2007 and grew to become a prominent supplier of groundworks and civil engineering services to developers and housebuilders. The company was a partner of Stoke City FC, with the South Stand of the club’s bet365 Stadium being named 'The Caldwell Construction Stand'.

For a legal perspective, we spoke to Nick Stockley, partner at Mayo Wynne Baxter.

"As Caldwell Construction Limited has gone into administration, there will be a better chance of either rescuing the company as a going concern or providing a better return to creditors than if the company went into liquidation.

In a situation like this the administrators will see if there is some chance that the company can be rescued.

As the company is making an annual revenue of £58.4m, there appears to be a viable business there.

However, the company may be suffering from a significant cashflow difficulties which leave it “unable to pay their costs as they fall due”.

The process of administration gives the company protection from immediate legal action whilst the administrators consider how the business can be restructured.

That restructure will involve either a significant downsizing restructure and/or a sale of the company’s assets.

Regardless of what rescue measures are considered, jobs will inevitably be lost and creditors will not be paid, that will have a negative impact up and down the supply chain.

The company’s directors will have appointed administrators to protect themselves from personal liability.

They have also given themselves the chance of setting up a new company which can take on existing contracts and, where possible, limit the damage to the supply chain."

Share this article

Latest Building and Construction Businesses for Sale

View more businesses for sale