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Administration · 29 April 2024

ARJ Construction

Main contractor · Stevenage · East Anglia

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What happened

ARJ CONSTRUCTION LIMITED (company number 05537501), incorporated in 2005, entered administration on 29 April 2024. Its status at Companies House is now: liquidation.

Why it failed

Loss-making projects caused by unrecoverable inflation in material and labour costs drained cash reserves, so the company could not complete its existing contracts without significant new funding.

  • Main reason: Losses on contracts
  • Cost inflation
  • Cash flow

Our summary of the reasons given in the administrators' proposals. These record the administrators' and directors' account of what happened.

An administrator, a licensed insolvency practitioner, takes control of the company to try to rescue it, sell the business or get a better result for creditors than a liquidation.

Timeline

The last accounts and payment report before the failure, then what happened, with the time between each.

  1. 30 April 2023

    Last accounts filed were made up to this date

    12 months later

  2. 29 April 2024

    Administration started

    12 months later

  3. 25 April 2025

    Administration ended

  4. 25 April 2025

    Creditors' voluntary liquidation started (shareholders resolved to wind up)

AccountsPayment reportInsolvency

Before it failed

Key figures

Turnover in its last accounts, year to Apr 2023
£117.0m
Accounts at Companies House
Profit before tax, year to Apr 2023
£2.8m
Accounts at Companies House
Staff, year to Apr 2023
136
Accounts at Companies House
Net assets, year to Apr 2023
£8.5m
Accounts at Companies House
Owed to unsecured creditors (estimated), as at 29 April 2024
£13.5m
of which trade creditors £7.6m. HMRC owed £282k. Expected return to unsecured creditors: expected, amount not yet known
Administrators' proposals (includes £5m owed to subcontractors)

The last accounts filed were full accounts made up to 30 April 2023, 12 months before it went into administration.

The full filing history, including any late filings, charges and director changes, is on Companies House.

Lessons learned report

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