Enrok Construction, a contractor with a presence across the Midlands, has entered administration. The company, with offices in Ednaston, Derbyshire, and Stafford, faced challenges including the insolvency of a crucial supplier and contract delays, resulting in mounting cashflow pressure. 

Before administration, Enrok completed the construction of 51 residential units in the West Midlands. This featured a development of 19 affordable homes for citizens on Wellington Road in Handsworth. Additionally, the company undertook projects such as a £4 million medical centre in Nuneaton and contributed to the Glassworks residential scheme in Nottingham. In the financial snapshot captured in the firm’s latest available accounts until the end of May 2022, Enrok reported assets totaling approximately £563,000 and creditors amounting to nearly £433,500.

The directors, recognising the inevitability of insolvency, made the difficult decision to appoint administrators. Following this administration, seven out of eight company employees were made redundant. Tim Bateson, director at Interpath Advisory and joint administrator, highlighted the persistent challenges in the construction sector as the main reasons behind the administration. While the company can no longer trade, the administrators aim to support the affected employees and explore interest in the company’s live contracts.

In the broader context, Enrok’s situation adds to the concerning trend in the UK’s construction industry, where companies grapple with headwinds like cost inflation and material shortages. The construction sector has had thousands of businesses go into administration recently. The thin profit margins, often inherent in fixed-price contracts, have added to these challenges and led to an increase in distress and insolvencies. Further, news like this underscores the urgency for stakeholders in the construction sector to navigate the evolving landscape smartly.

For more in-depth insights about insolvencies in the UK, stay tuned to Administration List.