A leading UK construction firm has entered administration after reporting a £5.9 million pretax loss for the year ending March 31, 2024. According to reports, FK Group and two of its subsidiaries have submitted notices of their intention to appoint administrators.
It is believed that Cheshire-based FK Group has been affected by industry headwinds, including delays around the building safety regime and an ongoing unspecified legal issue related to the collapsed tier one contractor ISG. The company's turnover dropped by 23% to £100.6million.
During the same timeframe, FK Construction - the company's primary contracting arm - posted a pretax loss of £7.5 million. This sharp downturn came after its revenue fell by half, and the business had to account for £5.5 million in exceptional costs linked to an ongoing legal dispute with ISG.
FK Facades, the division responsible for curtain walling and rainscreen systems, recorded a pretax profit of £1.2 million on revenues of £57.2 million during the same period. Meanwhile, Companies House shows that the 2024/25 accounts for all three businesses are currently overdue.
A recent High Court ruling went against FK Facades in a case concerning remedial work on the roof of a commercial building in Ashton Moss, Greater Manchester.
The judge decided that Paragon was entitled to recover £80,500, along with the adjudicator's fees. FK Group, the parent company established in 1979, had been a prominent player in the sector, ranking fourth in the most recent CN Specialists Index for building envelope contractors.
FK Group was a longstanding UK buildingenvelope contractor, recognised for delivering roofing, cladding, façade systems and full envelope solutions on major construction schemes.
Established in 1979, it expanded into one of the sector's top performers and most recently held fourth place in the CN Specialists Index for buildingenvelope firms.
The group comprised several key divisions, including FK Construction, which served as its principal contracting arm; FK Facades, specialising in curtain walling and rainscreen systems; and FK Group Ltd, the overarching holding company.
