Caldwell Construction enters administration amid cashflow pressures in UK construction sector

Caldwell Construction Limited, a groundworks contractor serving national housebuilders, has entered administration following a period of acute cashflow pressure tied to challenging conditions across the UK construction sector.

PKF Littlejohn Advisory has been appointed administrator of the business, which operates from Stoke-on-Trent and Warrington and employs more than 400 people. The company reported revenue of approximately £58 million for the year to March 2025.

Paul Smith, a partner at PKF Littlejohn Advisory, said the construction market has been under sustained strain from rising costs, project delays, and broader uncertainty, factors that intensified at Caldwell in recent weeks and placed significant pressure on liquidity and day-to-day operations. He said advisers had worked closely with management over several months to assess restructuring options and potential solutions, but no viable pathway emerged that would allow the business to continue trading outside a formal insolvency process.

The appointment follows Caldwell filing a notice of intention to appoint administrators, a step that signaled mounting financial stress as the company sought protection while exploring rescue options.

Joint administrator Oliver Collinge said the directors took the decision to place the company into administration after concluding that no alternative solution was available. He said the immediate priority is to support employees and other stakeholders while the administrators assess the position of the business and its assets.