Another company is falling into admin as the battle begins to stop the business from dissolving altogether
The Torsion Construction administration will stave off complete collapse for a little longer, allowing time for the company’s affairs to be put in order.
At time of announcement, the company has around 12 active construction sites, and the last figures showed the company having a turnover of £165m.
Just the construction company is affected so far
The rest of the Torsion Group are currently unaffected by this move, including the development and care home operations.
Torsion Construction specialised in building student accommodation, retirement living spaces, and build-to-rent buildings, with projects in the North and Midlands.
The intent to appoint administrators comes following issues with liquidity and commercial problems related to their projects. The company now has temporary legal protection from creditors until the directors have considered funding or restructuring options.
A statement from the Torsion Group reads: “Torsion Group confirms that the directors of Torsion Construction Limited have filed a Notice of Intention to Appoint Administrators.
“This decision has not been taken lightly. It follows a prolonged period of exceptionally challenging trading conditions across the UK construction sector, together with a number of commercial events that have materially impacted the liquidity of the construction business.
“Over the past two years, Torsion Construction has experienced significant short-term liquidity pressures arising from a combination of delayed capital events, project-specific commercial matters, regulatory changes and wider market conditions.
“In addition, the introduction of direct payment arrangements on a number of projects successfully protected clients, supported project continuity and safeguarded payments to many supply chain partners, but significantly reduced the working capital available to the construction business.
“The Notice of Intention provides a period of legal protection while the Board continues to work closely with its investors, funders and professional advisers to pursue a number of advanced liquidity initiatives and determine the best possible outcome for the business and its stakeholders.
“This process relates solely to Torsion Construction Limited. Torsion Care, Torsion Homes and Torsion Developments all continue to operate and remain focused on delivering for their customers, investors and funding partners. Torsion Care & Torsion Projects are operationally and contractually independent from Torsion Construction Limited and continue to trade as normal.
“Over recent years, the Group has been implementing a strategic transition towards Construction Management and Development Management activities. This reflects a deliberate move towards a lower-risk, more capital-efficient operating model that is better aligned with current market conditions, while retaining the expertise, relationships and delivery capability that have always underpinned the business.
“Our immediate priorities are to support our employees, maintain continuity across live projects wherever possible, work constructively with our clients, funders and supply chain partners, and achieve the best possible outcome for all stakeholders.
“We recognise that today’s announcement will create uncertainty and concern, and we would like to thank our employees, clients, consultants, investors, funders and supply chain partners for their continued professionalism, loyalty and support during this period. Further updates will be provided as the process progresses.”
Construction sees the highest number of collapses
In July last year, analysis by Shakespeare Martineau found that of the 783 businesses that entered administration in H1 2025, 10% of them were construction businesses. This means 79 construction businesses filed for administration in the first six months of 2025.
While this is down from H1 2024’s 105, the overall number of administrations is still 3% higher than in 2023.
Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “While the year-on-year drop in administrations is worthy of note, the overall picture for business remains challenging.
“The North West becoming the worst-hit region is a significant shift. This suggests that distress is becoming more geographically widespread, no longer concentrated in Greater London and the South East. Local economic factors – including legacy pandemic debt, delayed investment and supply chain costs – continue to weigh heavily.
“These figures, while worthy of note, do not detract from the fact that the trading environment for many businesses remains highly challenging. Many companies are surviving through short-term fixes, but without sustained growth, improved consumer confidence and better access to funding, there are still choppy waters to navigate.”
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