Ripples from the Grenfell Tower disaster were still being felt last year when a major London construction firm entered administration after recording a £14 million loss in recent years. Ardmore Construction Ltd (ACL) was a large company known for erecting high-end apartment blocks and mixed-use developments in the capital.
But after the Grenfell Tower fire in 2017, the government launched a major review of cladding used on high-rise buildings, and changes to the law were made in the Building Safety Act. The sweeping changes meant that methods of construction, and particularly the use of cladding, were re-examined across the UK construction industry.
Firms like ACL faced huge remediation costs to bring old projects up to speed with new legislation, and in the case of ACL it faced six claims for such work totalling more than £150 million.
Post-Grenfell changes to the law meant that all construction projects completed in the past 30 years faced a review under the new rules. Acccording to business finance firm Rise Funding, ACL spent around £80 million fixing previous construction projects to bring them up to the new standards.
However, the huge spending layout hit the company’s balance sheet hard and in 2023 ACL recorded a £14 million loss on a £313 million turnover. Company directors said “supply chain inflation” and “some poor management” contributed to the loss, but the extended liability period under the Building Safety Act was the final blow.
On August 28, around 51 years to the day of its incorporation, the former giant of London construction firms was put into administration. Other Ardmore Group businesses remain unaffected and continue to trade profitably.
The Construction Enquirer reports group chairman Cormac Byrne said the ending of ACL was part of a restructuring strategy. Revenues for the group were forecast to rise beyond £400 million in 2026.
Mr Byrne said: “After a difficult period for the whole industry, we’re pleased to be forecasting a return to profit. We’ve made the structural changes needed to deliver more selectively, with better control and fewer risks, and it’s paying off.
“ACL played a huge role in our story, but it no longer reflects how the group operates today, and this is simply the final step in that journey.”
