A major UK construction company has plunged into administration after 52 years in business, leaving nine projects in limbo, including a scheme worth £500 million. Ardmore Group, founded by Irish brothers Cormac and Patrick Byrne in 1974, is well-known for its building projects across London. The company has worked on projects at the Raffles hotel and The Ned, as well as partnered with housebuilders such as Barratt Redrow, Berkeley and Crest Nicholson.
Notice of intention to appoint administrator
The firm has filed a notice of intention to appoint an administrator while a number of projects remain unfinished. These include Tribeca London, a major mixed-use campus in King's Cross, valued at £500 million. Work was stopped on a number of sites, ranging from luxury hospitality schemes in the West End to residential blocks in East London, on Thursday, June 11. The notice came after Ardmore Group missed payments to staff and subcontractors.
Projects affected
As well as Tribeca London, the firm had been working on hotels in Mayfair and Kensington. It has also been forced to halt the construction of flats in Earl's Court and Hackney Wick. The construction arm of Ardmore Group was placed into administration last year to protect the wider business. However, Crest Nicholson won a High Court challenge against the company over remediation costs at its Admiralty Quarter development in Portsmouth, a waterfront scheme of 19 buildings.
Company statement
On the court decision, Ardmore Group said: "The administration follows the profound impact of the recent Building Liability Order (BLO) judgment relating to the Admiralty Quarter project, which was completed in 2009. The judgment has affected client confidence, payment terms and certified values across a number of live projects, materially affecting the construction group’s ability to continue trading in the normal way."
They continued: "This is a deeply disappointing outcome for the construction group, its employees and its stakeholders. Our focus is now on preserving value in the wider Group, protecting the continuing businesses where possible, and pursuing the appeal against a judgment which we believe raises important questions for the wider industry."
Financial impact
Crest Nicholson was awarded close to £15 million, with the case paving the way for other builders to bring forward claims against the company, including Taylor Wimpey, Bellway and Barratt Redrow. According to its latest Companies House filings, Ardmore Group recorded a pre-tax loss of £42.6 million during the year to September 2024.
