Negative cashflow and inflationary headwinds have tipped Bromley construction company Claritas Group into administration.
Claritas founder and CEO, Jon Wardle, announced the Group’s voluntary liquidation on Friday, 2 June.
Wardle said company losses due to inflationary pressures had been “too great”.
He paid special thanks to staff, and to supply chain partners who he described as the “most important cog” in the industry.
Wardle also made a plea to recruiters on behalf of his workforce.
He apologised profusely for the Group’s “sad demise”, adding he hoped to work in construction “for years to come”.
Financial position – latest
Company accounts for the year ended 31 March 2022 show…
- Turnover: £50,488,426 (2021: £36,938,551)
- PBT: £455,851 (2021: £581,932)
- Cash: £1,382,897 (2021: £6,620,256)
- Employees: 113 (2021: 77)
Sector insolvency
The construction sector is the ‘most significant contributor to insolvency figures’ in the UK, with recent data showing an increasing number of firms going out of business.
More than 300 firms ceased trading in February alone, according to the Insolvency Service, representing a near 13% rise since January and more than 6% for the same period in the previous year.
In March this year, that figure rose to 405, representing 18% of all insolvencies across the UK in the same month, reported credit score company CreditSafe.
Figures also show more than 4,100 construction companies ceased trading in the year to February, the second highest on record for the same period since the financial crash.
Jon Wardle statement
“Today (2 June) I am sad to announce that Claritas Group has started the process of a Creditors’ Voluntary Liquidation,” said Wardle.
“Firstly, I must thank every member of the Claritas team that kept supporting me, each other, all our customers that supported the group and our supply chain until the very end. I am sorry that this decision will affect you and your families and will be forever grateful for your support and commitment. If you are currently recruiting or planning to, then please do look for a member of the Claritas team to fill your vacancy.
“Thank you to those customers that over the last couple of years have recognised and supported Claritas Group and the industry through the many challenges we have faced together and most recently the inflationary pressures that have not just affected the construction industry but the whole economy. I am truly sorry for the impact that this will have on your projects, people and businesses.
“The challenge of cash flowing and managing the losses associated with the inflationary pressures of these uncertain times was just too great.
“To our supply chain who supported us to the end. I thank all of you and I am truly sorry for the impact on you, your respective employees and supply chains. In many ways, you are the most important cog in our diverse and fragmented industry.
“To the many consultants that we have worked with and that have supported us over the years. Thank you. Successful construction projects are delivered by teams and the roles that you play are critical to those successes. I am passionate about our industry and if nothing else I hope that the Claritas Group’s sad demise can provide inspiration for a more sustainable and collaborative industry.
“Construction is what I know, what I am passionate about and I hope that I am afforded the opportunity to continue my personal journey in this great industry, and I look forward to working with and or talking about it with you for years to come.
“Right now, I am truly sorry if you are being affected by the Claritas Group’s failure in any way.”
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