The number of construction companies in “critical” financial distress has soared in the past 12 months, according to an insolvency specialist.
Begbies Traynor said that the number of construction sector firms in its worst financial category rose to 7,361 in the third quarter (Q3) of 2025, compared with 4,324 at the same point in 2024 – a year-on-year rise of just over 70 per cent.
The number had already risen to 6,999 in the second quarter of the year.
The rating is based on the company’s Red Flag Alert system, which screens firms for sustained or marked deterioration in key financial ratios and indicators including those measuring working capital, contingent liabilities, retained profits and net worth.
Begbies Traynor said that the…