{"id":537700,"date":"2026-02-06T11:48:49","date_gmt":"2026-02-06T11:48:49","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=537700"},"modified":"2026-02-06T13:40:02","modified_gmt":"2026-02-06T13:40:02","slug":"ardmore-loss-quadruples-amid-problem-jobs-and-contracting-arm-collapse","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/ardmore-loss-quadruples-amid-problem-jobs-and-contracting-arm-collapse-06-02-2026\/","title":{"rendered":"Ardmore loss quadruples amid problem jobs and contracting arm collapse"},"content":{"rendered":"

Ardmore Group Ltd has plunged deeper into the red amid losses on legacy jobs and the collapse of its contracting arm following a \u201csignificant\u201d adjudication award.<\/p>\n

The release of audited accounts for the year to 30 September 2024 \u2013 following a four-month delay<\/a> \u2013 showed the group\u2019s pre-tax loss quadrupled from \u00a310.8m to \u00a342.4m, while turnover dropped by 14 per cent from \u00a3403.1m to \u00a3345.9m.<\/p>\n

As a result, its pre-tax margin dropped to -12.2 per cent compared to -2.7 per cent the previous year<\/a>.<\/p>\n

The firm attributed the drop in turnover to delayed contract awards, \u201cslower progress on a limited number of projects, and a more selective approach to work acquisition\u201d as it sought to reduce its exposure to risk.<\/p>\n

The deeper loss reflected \u201cfurther losses on a small number of legacy construction projects\u201d and the collapse of its contracting business Ardmore Construction Ltd<\/a> last August, it added.<\/p>\n

While that event occurred after the period covered by the latest accounts, it was included as \u201cpart of the group\u2019s separation of discontinued activities\u201d, Ardmore Group said.<\/p>\n

\u201cThe preparation and publication of the accounts followed this process, reflecting the complexity of formally concluding these matters.\u201d<\/p>\n

The group also associated its deeper pre-tax loss with what it described as a \u201csignificant\u201d building liability order (BLO)<\/a> adjudication award against Ardmore Construction in December 2024 \u2013 also after the period covered by the accounts.<\/p>\n

The High Court ordered Ardmore Construction to pay \u00a315m to BDW in relation to alleged fire safety defects on the Crown Heights development in Basingstoke, which achieved practical completion between 2003 and 2004.<\/p>\n

Ardmore Group\u2019s accounts included a section on contingent liabilities that dealt exclusively with the introduction of BLOs.<\/p>\n

They acknowledged that the group of companies \u201chave received multiple claims, or notices of intention to raise a claim, relating to historic contracts\u201d delivered by Ardmore Construction.<\/p>\n

While that company is now in administration, other Ardmore companies<\/a> \u201cmay also be held jointly and severally liable for claims involving a relevant liability, where it is deemed just and equitable\u201d, the accounts added.<\/p>\n

Ardmore Group said it cannot assess the likely outcome of ongoing potential BLO claims, given their \u201cvague nature, a lack of supporting evidence from claimants, and the lengthy timeframes involved before a reliable estimate of financial cost can be determined\u201d.<\/p>\n

Cash at bank and in hand eroded from \u00a384.3m to \u00a327.6m, although the accounts said that cash resources at the year-end were \u201csufficient to meet ongoing operational requirements\u201d.<\/p>\n

No dividends were paid out, and the group held no external bank loans or ovedrafts.<\/p>\n

Its average monthly headcount rose from 515 to 638 staff, resulting in a heftier annual wage bill of \u00a338.6m compared with \u00a335.3m the year before.<\/p>\n

The accounts said the firm had put in place a series of \u201ctargeted actions\u201d to address \u201cproject-specific issues and the broader operating model\u201d of the group.<\/p>\n

These included the closure of its in-house joinery and metal workshops as a step towards \u201creducing exposure to manufacturing-related overhead and execution risk\u201d, the accounts said.<\/p>\n

Chairman Cormac Byrne said the latest results were \u201canomalous\u201d, adding that the group\u2019s underlying performance and medium-term prospects were more positive.<\/p>\n

\u201cThese results reflect a difficult period for the group, that has tested every part of the business, but they do not reflect where Ardmore is now or the direction we are heading,\u201d he added.<\/p>\n

\u201cTrading performance improved materially following the year-end and continued through 2025,\u201d Ardmore Group said in a press release accompanying the results.<\/p>\n

It added that it expects to report an \u00a311m pre-tax profit for the year to 30 September 2025, \u201csupported by a robust order book, improved delivery performance and a continued focus on governance and execution\u201d.<\/p>\n

The group retains an active contracting arm called Ardmore Construction Group, which focuses on residential and hotel refurbishment jobs in London and South East England.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ardmore Group Ltd has plunged deeper into the red amid losses on legacy jobs and the collapse of its contracting arm following a \u201csignificant\u201d adjudication award. The release of audited accounts for the year to 30 September 2024 \u2013 following a four-month delay \u2013 showed the group\u2019s pre-tax loss quadrupled from \u00a310.8m to \u00a342.4m, while …<\/p>\n","protected":false},"author":135716,"featured_media":531078,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552],"tags":[],"class_list":["post-537700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial"],"yoast_head":"\nArdmore loss quadruples amid problem jobs and contracting arm collapse | Construction News<\/title>\n<meta name=\"description\" content=\"Ardmore Group Ltd has plunged deeper into the red amid losses on legacy jobs and the collapse of its contracting arm following a \u201csignificant\u201d\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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