{"id":126160,"date":"2023-05-09T13:17:31","date_gmt":"2023-05-09T12:17:31","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=126160"},"modified":"2023-05-09T13:53:13","modified_gmt":"2023-05-09T12:53:13","slug":"construction-insolvencies-higher-than-any-other-sector-in-last-year","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-insolvencies-higher-than-any-other-sector-in-last-year\/126160\/","title":{"rendered":"Construction insolvencies higher than any other sector in the last year"},"content":{"rendered":"<h2>Construction insolvencies accounted for nearly one-fifth of insolvencies declared in the last twelve months<\/h2>\n<p>Data released from the government&#8217;s <a href=\"https:\/\/www.gov.uk\/government\/statistics\/company-insolvency-statistics-january-to-march-2023\/commentary-company-insolvency-statistics-january-to-march-2023\" target=\"_blank\" rel=\"noopener\">Insolvency Service<\/a> have found that construction insolvencies accounted for 19% of businesses going into administration or declaring bankruptcy.<\/p>\n<p>The construction industry was itself highest of the top five industrial sectors for insolvencies, beating out retail and hospitality services at a respective 16% and 13%.<\/p>\n<p>The administrative and support service sector and the professional, scientific and technical activities both trailed behind at 10% and under.<\/p>\n<h3>The findings reflected a turbulent decade for construction<\/h3>\n<p>The analysis from the Involvency Service noted that construction insolvencies have outnumbered other industrial sectors consistently over the last decade (with the exception of hospitality related services during the height of COVID-19 lockdowns in Q4 of 2020).<\/p>\n<figure style=\"width: 768px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/image_data\/file\/182945\/sector_timeseries_quarter.svg\" alt=\"A line chart showing the change over time in the quarterly number of insolvencies in the five sectors with the most insolvencies over the past five years. The data is in Table A1a of the accompanying industry tables.\" width=\"768\" height=\"512\" \/><figcaption class=\"wp-caption-text\">Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)<\/figcaption><\/figure>\n<p>All sectors saw a significant leap in the number of insolvencies since this time last year, though the construction industry&#8217;s 4,165 increased by nearly a thousand (3,213 in March 2022).<\/p>\n<p>Whilst construction has <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-activity-continues-to-grow-in-the-uk-according-to-april-pmis\/125936\/\" target=\"_blank\" rel=\"noopener\">shown sporadic growth<\/a> over the last few months, the industry is still facing the lingering impact of the war in Ukraine and Brexit <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/seven-issues-that-will-affect-supply-chains-in-2023\/119926\/\" target=\"_blank\" rel=\"noopener\">impacting the supply chain<\/a>, with inflation rises compounding economic issues for companies of all sizes.<\/p>\n<h3>Recent construction insolvencies include:<\/h3>\n<ul>\n<li>\n<h4>Metnor Construction Limited<\/h4>\n<\/li>\n<\/ul>\n<p>Killingworth-based Metnor Construction Limited, which fell into administration in February of this year, recently met with creditors to discuss next steps.<\/p>\n<p>Steve Ross, partner at FRP and joint administrator, said in February:\u00a0&#8220;Metnor Construction was a long-established and major main North East building contractor that has delivered on significant projects across the UK but wasn\u2019t immune to the<a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/rising-inflation-depleting-construction-industry-confidence-gleeds-winter-survey\/120823\/\" target=\"_blank\" rel=\"noopener\"> impact of rising costs<\/a>, which ultimately led to its insolvency.&#8221;<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">Corniche Construction Ltd in Crawley<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>West Sussex firm Corniche catered for a variety of clients, ranging from education to ecclesiastical developments in the South of England.<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">Topside Group Limited<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>Walling, window and door specialist Topside Group delivered on a number of projects in the North East and often worked with Morgan Sindall and BAM Construction.<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">J M Scully Limited<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>Dorset based J M Scully was set up in 1983 by Mike Scully and was more recently run by his son Michael Scully. Their latest turnover figures indicated a pre-tax loss of \u00a32.3m.<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">Lane End Developments Construction Ltd\u00a0<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>Takeover talks regarding the prominent housing developer in the North West, Warrington based Lane End, fell through earlier this year.<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">Sterling Services Limited<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>45 employees were made redundant in late April when Sterling Services went into administration.<\/p>\n<p>Interpath Advisory, who were appointed joint administrators, commented that Sterling Services had been hit by \u201cwider group cashflow pressures and cross guarantees\u201d which \u201cultimately resulted in <a href=\"https:\/\/www.pbctoday.co.uk\/news\/digital-construction\/construction-technology-news\/building-resilient-construction-business-payapps\/125812\/\" target=\"_blank\" rel=\"noopener\">additional liabilities arising<\/a> and no access to ongoing funding.\u201d<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">Sturminster UK Ltd<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>The family-run company based in Bournemouth specialised in retail and commercial fit outs.<\/p>\n<ul>\n<li>\n<h4><span data-gazettes=\"CompanyName\" data-gazettes-class=\"Company\">ME Construction Limited\u00a0<\/span><\/h4>\n<\/li>\n<\/ul>\n<p>Once featured in the Sunday Times&#8217; Fast Track 100 List and recognised as the UK\u2019s fastest growing privately owned construction company, administrators were appointed to the Romford company on 13th April.<\/p>\n<p><strong>Harriet Clough<\/strong><\/p>\n<p><a href=\"mailto:hclough@pbctoday.co.uk\" target=\"_blank\" rel=\"noopener noreferrer\">hclough@pbctoday.co.uk<\/a><\/p>\n<p>Twitter:\u00a0<a href=\"https:\/\/twitter.com\/Harriet_PBC\" target=\"_blank\" rel=\"noopener noreferrer\">@Harriet_PBC<\/a><\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Construction insolvencies accounted for nearly one-fifth of insolvencies declared in the last twelve months, according to figures released from the government&#8217;s Insolvency Service<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[20347,908],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-126160","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-administration","8":"tag-economy"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Construction insolvencies higher than any other sector in the last year<\/title>\n<meta name=\"description\" content=\"Construction insolvencies accounted for nearly one-fifth of insolvencies declared in the last twelve months\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-insolvencies-higher-than-any-other-sector-in-last-year\/126160\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction insolvencies higher than any other sector in the last year\" \/>\n<meta property=\"og:description\" content=\"Construction insolvencies accounted for nearly one-fifth of insolvencies declared in the last twelve months\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-insolvencies-higher-than-any-other-sector-in-last-year\/126160\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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