Ardmore’s construction business has been placed into administration, a move the company attributes directly to a recent High Court judgment concerning the Admiralty Quarter project. This decision has led to staff being sent home from affected businesses this morning.
The administration impacts several entities within Ardmore’s construction group, including Ardmore Construction Group, Ardmore Major Projects, Regeneration, Fit-out, Hotels & Commercial, and Landmark. The company stated that the judgment has significantly impacted client confidence, payment terms, and certified values across multiple ongoing projects, rendering normal trading impossible.
Key Takeaways
- Ardmore’s construction business has entered administration.
- The collapse is linked to a High Court ruling over the Admiralty Quarter project.
- The ruling involved Building Liability Orders (BLOs) and a £15m payment to Crest Nicholson.
- Ardmore Group itself has applied for a moratorium to continue trading while exploring rescue options.
- The company is pursuing an appeal against the BLO judgment, citing wider industry implications.
The High Court Judgment and its Fallout
The critical High Court ruling, which occurred last month, ordered several Ardmore firms to pay housebuilder Crest Nicholson nearly £15 million. This payment was related to cladding issues at 19 residential buildings at Admiralty Quarter in Portsmouth. Ardmore had argued that paying this sum would put them at risk of insolvency.
The case highlighted the application of Building Liability Orders (BLOs), introduced under the Building Safety Act 2022. These orders allow liability for building defects to extend beyond the original contractor to parent companies and associated businesses within the same corporate group.
Ardmore Group’s Response and Appeal
While the construction business has gone into administration, Ardmore Group has stated it has not entered administration. Instead, it has applied for a company moratorium. This process is designed to provide temporary protection from creditors while the company reviews its options and continues to prepare its appeal against the BLO judgment.
Ardmore has been granted permission to appeal to the Court of Appeal, with the case being expedited due to the significant issues it raises for the construction industry. The company believes the appeal addresses broader public importance concerning the circumstances under which BLOs can be made and the extent of liability imposed on group companies for historic projects.
Financial Performance and Future Outlook
Ardmore has been facing claims from various housebuilders and housing associations. The company was working on several projects in London, including the £154 million Britannia residential scheme in Shoreditch. Earlier this year, Ardmore had projected a profit for 2025, following a pre-tax loss of £42 million for the year ending September 2024. This loss represented a widening from the nearly £11 million loss recorded in 2023. Turnover for the period decreased by 14% to £346 million, with year-end cash reserves standing at £27.6 million.
An Ardmore spokesperson expressed deep disappointment regarding the outcome for the construction group, its employees, and stakeholders. The focus is now on preserving value within the wider Group, protecting continuing businesses where possible, and vigorously pursuing the appeal against a judgment that Ardmore believes raises critical questions for the entire industry.
