Cheshire-based construction firm FK Group enters administration after 5.9m losses

FK Group and two of its subsidiaries have filed notices of their intention to appoint administrators

A prominent Cheshire-based construction company has collapsed into administration following a £5.9 million pretax loss for the financial year concluding on March 31, 2024. Reports indicate that FK Group, alongside two subsidiary companies, has filed documentation signalling their intent to appoint administrators.

FK Group, which lists its headquarters as based in Stockport Road, Altrincham, is understood to have been battered by sector-wide challenges, including hold-ups surrounding building safety regulations and an unresolved legal matter connected to the collapse of tier one contractor ISG. Turnover plummeted by 23% to £100.6million, reports the Express.

Over the same period, FK Construction – the group’s main contracting operation – reported a pretax loss of £7.5 million. This dramatic decline followed a 50% slump in revenue, whilst the firm was forced to absorb £5.5 million in exceptional costs arising from the continuing ISG legal dispute.

FK Facades, the arm specialising in curtain walling and rainscreen systems, managed to deliver a pretax profit of £1.2 million against revenues of £57.2 million during the identical timeframe. Records at Companies House reveal that the 2024/25 accounts for all three entities remain outstanding.

A recent High Court judgment ruled against FK Facades in proceedings relating to remedial works on a commercial building’s roof in Ashton Moss, Greater Manchester. The judge ruled in favour of Paragon, granting them the right to reclaim £80,500, in addition to the adjudicator’s fees.

FK Group, a parent company founded in 1979, had been a significant force within the industry, securing fourth place in the latest CN Specialists Index for building envelope contractors.

FK Group was a well-established UK building envelope contractor, known for its expertise in delivering roofing, cladding, façade systems and comprehensive envelope solutions on major construction projects.

Since its inception in 1979, it grew into one of the industry’s leading entities, most recently clinching fourth position in the CN Specialists Index for building envelope companies.

The group was made up of several crucial divisions, including FK Construction, which functioned as its main contracting arm; FK Facades, focusing on curtain walling and rainscreen systems; and FK Group Ltd, the overarching holding company.