Torsion Construction collapses after funding efforts fail

Torsion Construction Limited has entered administration after rising costs, contract margin pressure and delays to major capital events exhausted the Leeds-based contractor’s liquidity.

James Clark and Howard Smith of Interpath were appointed joint administrators on 29 July 2026. The business ceased trading immediately, with most of its 115 employees made redundant and a small team retained to assist with the orderly wind-down.

Torsion specialised in residential and living-sector projects, including purpose-built student accommodation, build-to-rent schemes and retirement developments. The construction arm was reportedly working across 12 live sites before the appointment, with the company and administrators engaging with clients and funders over the future of those projects.

The administration followed a failed attempt to secure additional funding after the directors filed a notice of intention to appoint administrators on 20 July. Interpath said no viable solution could be found to support the company’s continued operations.

Torsion attributed its collapse to a combination of reduced construction activity, rising input costs, delays to significant capital events and project-specific commercial difficulties. Direct payment arrangements introduced on several contracts protected clients and payments to parts of the supply chain, but reduced the working capital available to the company.

The contractor had expanded rapidly before its failure. Turnover increased to £165.4 million in the year ended 30 June 2025 from a restated £117.2 million, while pre-tax profit rose to £814,155 from £403,571. Despite the growth, the company operated on thin margins and employed an average of 147 people during the year.

The administration applies only to Torsion Construction. Other businesses within the wider group, including Torsion Care, Torsion Projects, Torsion Homes and Torsion Developments, continue to trade.