The number of UK construction companies in ‘significant’ distress has risen 13.9% from Q2 2024, while the number in ‘critical’ distress has increased 15.8% to 6,999, according to Begbies Traynor.
The corporate recovery specialist has produced its quarterly Red Flag Alert reports on British corporate health for almost two decades.
In the second quarter of 2025 there were 102,285 UK construction companies in ‘significant’ distress, meaning that they are struggling to meet their financial obligations. This is 13.9% more than in Q2 2024.
The number of UK construction companies in ‘critical’ distress, a more severe category indicating potential insolvency, was 6,999 – an increase of 15.8% on a year before.
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