Latest figures from Begbies Traynor’s Red Flag Alert, which monitors the financial health of UK companies, show that the number of construction companies in ‘critical’ distress in the third quarter of 2025 reached 7,361. This is 70.2% higher than in the same period last year.
The number of construction firms experiencing ‘significant’ distress – a lower grade of woe – was up 14.6% year-on-year to 103,551 in the third quarter (July-September) but only up by 1.2% on the second quarter’s figure.
Areas of the industry hit hardest by ‘significant’ distress in the past year were companies delivering:
- Specialised design activities – up 23.5% to 6,799
- Development of building projects – up 23.2% to…