What Torsion's collapse reveals about the margin problem in construction companies

Jessica Williams and Holly Hampton of Mishcon de Reya review the collapse of Torsion Construction, which entered administration in July 2026 despite turnover exceeding £165 million and a secured pipeline of approximately £660 million, highlighting how wafer-thin profit margins, declining cash reserves, payment delays and project-specific setbacks can undermine even rapidly growing contractors, while placing the failure in the context of persistently elevated UK construction insolvencies, the particular vulnerability of specialist subcontractors and the importance of monitoring cash flow, payment behaviour and working capital rather than relying on headline revenue or order books as indicators of financial health.

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