Wed, 16 Jul 2025 | ADMINISTRATION
An Edinburgh-headquartered cybersecurity firm which generated turnover of close to £45 million in 2023 has fallen into administration. Adarma Limited collapsed after losing a major customer, which put pressure on its cashflow, and failing to raise new funds.
Founded in 2009, Adarma had grown to become one of the UK’s leading cybersecurity providers, employing a total of 176 staff across its offices in Edinburgh and London, and had clients from the banking and luxury goods industries.
In accounts for the year ending December 31 2023, the company reported turnover of £44.7 million, down slightly from £47.4 million a year earlier, and saw its post-tax losses widen from around £10,000 to just over £80,000.
This drop in revenue was attributed to the end of a three year contract with Nationwide, which did not renew after 2022, but directors stated the firm’s run rate had recovered by the end of the year, with the expectation that profits would continue growing.
However, the loss of a major customer is understood to have resulted in significant financial pressure. Despite directors pursuing fresh investment or a buyer for the business, the failure of these fundraising efforts meant that directors had “no choice” but to place the company into administration.
Employees were reportedly informed last week in a conference call that the business would cease operations. Will Wright and Alistair McAlinden of Interpath Advisory were subsequently appointed as joint administrators on July 14.
Upon their appointment, the business ceased trading and 173 staff, including 120 at the Edinburgh office, were made redundant. The three remaining employees have been retained to assist the joint administrators in winding up the business.
Will Wright, UK CEO at Interpath and joint administrator of Adarma Limited, said: “Adarma had built a strong reputation in the cyber security sector, but sustained margin and cashflow pressures ultimately proved insurmountable.”
“Like many in the industry, the business faced intense competition, rising operational costs, and a continual need for investment. Given Adarma’s financial position, we’ve made the difficult decision to cease trading.”
In its 2023 accounts, the company’s fixed assets were valued at £2.2 million and current assets at £22.6 million, with net assets amounting to £15.3 million.
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