A company in the construction sector has gone into administration, jeopardizing over 400 jobs. Caldwell Construction Limited, established in 2007, has enlisted administrators from PKF Littlejohn Advisory. This firm specializing in groundworks and civil engineering operates from offices in Stoke-on-Trent and Warrington, Cheshire.
PKF Littlejohn Advisory’s Partner, Paul Smith, mentioned that the construction industry has been facing tough market conditions, with escalating costs, project delays, and overall market uncertainty in recent years. Despite reporting a turnover of £58.4 million last year, Caldwell’s operating profit was under £1 million. Smith explained that mounting pressures in the past weeks strained the company’s cashflow and operations.
Efforts to explore solutions for Caldwell’s challenges were fruitless, leading to the decision to go into administration. The focus now is on assisting employees and stakeholders while evaluating the business’s situation and assets.
In a separate incident, Consumer Energy Solutions in south Wales also fell into administration, affecting around 300 employees. Distinct from Caldwell, Consumer Energy Solutions operates in Swansea and Rhondda Cynon Taf. The company ceased trading abruptly, leaving staff shocked and uncertain about their future just before the holiday season.
The company attributed the restructuring and job losses to the conclusion of the UK Government-backed Energy Company Obligation 4 scheme it operated. This initiative, aiding homeowners in energy-efficient upgrades, is set to end this year. Joint administrators have taken charge, and further work for customers is halted.
The administration of Consumer Energy Solutions is isolated and does not impact other companies within the City Energy Group.