A civil engineering and groundworks company, Caldwell Construction Limited, has gone into administration, putting more than 400 jobs in jeopardy. The company, established in 2007, has offices in Stoke-on-Trent and Warrington, Cheshire, and has appointed administrators at PKF Littlejohn Advisory. Paul Smith, a Partner at PKF Littlejohn Advisory UK LLP, stated that the construction industry has been facing tough trading conditions, with rising costs, project delays, and market uncertainties in recent years.

Despite reporting a turnover of £58.4 million last year, Caldwell Construction’s operating profit was under £1 million. Smith mentioned that the company had been struggling with cash flow and operational issues due to increasing pressures in the past few weeks. The administrators, along with Caldwell’s management, explored various options to save the business, but unfortunately, they could not find a viable solution to avoid insolvency.

The Joint Administrator, Oliver Collinge, confirmed that Caldwell’s directors made the difficult decision to enter administration. The focus now is on providing support to employees and stakeholders while evaluating the company’s assets and overall situation. This development follows the collapse of Consumer Energy Solutions, a separate entity in south Wales, which also recently entered administration, affecting nearly 300 employees. The two companies are not linked.

Consumer Energy Solutions, with locations in Swansea and Rhondda Cynon Taf, abruptly ceased trading, leaving employees distraught after learning about their job risks just before the holiday season. The company announced its inability to fulfill any further customer work. The restructuring and job cuts were attributed to the conclusion of the UK Government-backed Energy Company Obligation 4 scheme, which supported home energy upgrades. With the scheme’s end approaching, Consumer Energy Solutions faced financial challenges, leading to its closure under the joint administrators, James Saunders and Michael Lennon of KR8 Advisory Limited.

The administration of Consumer Energy Solutions Limited does not involve any other entities within the City Energy Group.