A civil engineering and groundworks company, Caldwell Construction Limited, has gone into administration, endangering over 400 jobs. The company, established in 2007, has enlisted administrators from PKF Littlejohn Advisory, with offices in Stoke-on-Trent and Warrington, Cheshire.
Paul Smith, a Partner at PKF Littlejohn Advisory UK LLP, highlighted the tough conditions in the construction sector in recent years, citing rising costs, project delays, and market uncertainties. Despite reporting a turnover of £58.4 million last year, Caldwell’s operating profit was under £1 million. Smith stated that recent challenges have strained the company’s cashflow and operations.
Efforts to explore alternatives and solutions for Caldwell’s business were made by the PKF Littlejohn Advisory teams in Manchester and Leeds over the past few months. However, the company ultimately could not find a viable path forward outside of insolvency.
Joint Administrator Oliver Collinge confirmed the company’s decision to enter administration, emphasizing the immediate focus on supporting employees and stakeholders while evaluating the business’s assets. This development follows the recent collapse of Consumer Energy Solutions, a separate entity, impacting nearly 300 staff in south Wales.
Consumer Energy Solutions, with locations in Swansea and Rhondda Cynon Taf, abruptly ceased trading, leaving employees uncertain about their future just before the holiday season. The company attributed the restructuring and job losses to the conclusion of the UK Government-backed Energy Company Obligation 4 scheme it operated, which aimed to assist homeowners in energy-saving upgrades like insulation and solar panels.