Ardmore administrators press ahead with litigation after £3.4m HMRC recovery

Ardmore Construction Limited’s administrators expect to make a distribution to unsecured creditors after recovering approximately £3.4 million from HM Revenue & Customs, while work continues on intercompany balances, insurance claims and potential litigation.

Dominik Thiel-Czerwinke and Jamie Taylor of BTG Begbies Traynor, together with Jason Callender of Panos Eliades Callender & Co, were appointed joint administrators of the construction company on 28 August 2025. The administration has since been extended by 12 months with creditor consent.

During the six months to 27 August 2026, the administrators recovered approximately £3.41 million from HMRC relating to overpayments and credits on the company’s PAYE/NIC account, together with £18,580 from debtors, £9,001 in bank interest, £9,090 from a utilities refund and £513 from the company’s former bankers. The receipts and payments account shows total asset realisations of approximately £3.44 million during the period.

The HMRC recovery has materially improved the anticipated outcome for creditors. The administrators said there are no known secured or preferential creditors and that sufficient funds are expected to be available to pay HMRC’s secondary preferential claim in full. They also now expect a distribution to unsecured creditors, although the level of the dividend will depend on the final value of claims and further recoveries.

A number of potential recoveries remain outstanding. The administrators are pursuing intercompany loan balances, although some counterparties are themselves subject to insolvency proceedings and the amounts ultimately recoverable remain uncertain. They are also dealing with debtor claims, a Nexus insurance claim and potential recovery of a terminal loss relief claim. Claims involving Kinetica and the company’s outstanding debtor and retention balances also remain unresolved.

Investigations and litigation work are continuing. The administrators said they have reviewed the company’s books and records and potential antecedent transactions, while solicitors have been instructed on matters including building regulations and cladding claims, a potential claim against Nexus, litigation involving Kinetica and Fenwick Elliott, and various contractual and insurance issues.

The administrators currently propose to exit the process by distributing available funds to unsecured creditors and then moving Ardmore Construction into dissolution, although a company voluntary arrangement or liquidation remains possible if circumstances change.

Read the administrators’ report here.