Ardmore Group Ltd has filed for court protection against creditor action, following a series of insolvency filings by multiple entities within the construction group. According to court records, the group submitted an application for a moratorium on 11 June, while separate filings for administration were made for Ardmore Construction Group Ltd and several subsidiaries, including Ardmore Major Projects Ltd, Ardmore Regeneration Ltd, Ardmore Fitout Ltd, and Landmark Facades Ltd.
Why is Ardmore Group seeking insolvency protection?
The recent filings follow a £53.4m High Court claim lodged by housebuilder Bellway. According to court documents provided by litigation analytics firm Solomonic, Bellway is seeking building liability orders (BLO) against Ardmore-linked firms regarding alleged structural defects at the City Peninsula development in Greenwich. Bellway’s claim, which cites the Building Safety Act 2022, alleges that defects in the concrete structure and transfer slabs pose a “very serious health and safety risk.” No defendants have filed a formal defence to these claims as of mid-June.
Under the Building Safety Act 2022, building-safety liabilities can be extended to associated companies through Building Liability Orders (BLO), a legal mechanism increasingly used in construction litigation.
How does a moratorium differ from administration?
The moratorium applications, lodged under Part A1 of the Insolvency Act 1986, provide temporary protection from creditor action while the firm explores rescue options. Unlike the administration process, which transfers control to an insolvency practitioner, a moratorium leaves company directors in charge while a monitor oversees the process, according to the legislation. This move follows the administration of Ardmore Construction Ltd, which entered the process on 28 August last year.
What is the financial state of the Ardmore firms?
Financial records for the year ending 30 September 2024 highlight significant losses across the group. Ardmore Construction Group Ltd reported a turnover of £343.8m with a pre-tax loss of £42.6m, representing a margin of -12.4 per cent. Similarly, Ardmore Group Ltd posted a £42.4m pre-tax loss on £345.9m turnover, and Ardmore Major Projects Ltd recorded a -30 per cent margin with a £29.3m loss. These figures underscore the financial pressure facing the group alongside ongoing legal liabilities.
When reviewing construction liability, check for “associated company” status. Recent precedents, such as the £14.9m judgment against seven Ardmore-linked firms regarding the Admiralty Quarter development, demonstrate that courts are increasingly willing to hold related entities accountable for building safety defects.
Frequently Asked Questions
- What is a Building Liability Order (BLO)?
A BLO allows a court to extend building-safety liabilities from one company to its associated companies, as established under the Building Safety Act 2022. - Who is managing the Ardmore moratorium?
The applications name two insolvency practitioners from BTG as respondents to act as monitors. - Are all Ardmore firms in administration?
No. As of 11 June, Ardmore Hotels & Commercial remains the only operational subsidiary of the construction group that has not lodged an administration application.
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