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UK: Leeds-based contractor Torsion Construction has filed a Notice of Intention to Appoint Administrators (NOI) following a prolonged period of liquidity pressures.
The company, established in 2015, has delivered major residential and student accommodation developments across the UK.
The company said the decision follows exceptionally challenging trading conditions, project-specific commercial issues and reduced working capital despite measures taken to protect clients and supply chain payments.
The proposed administration relates only to Torsion Construction. Other group businesses, including Torsion Care and Torsion Projects, are stated to be operationally and contractually independent and continue to trade as normal.
Last year, Torsion recorded revenues of £164 million, up from £117 million in 2024, and a pre-tax profit of £800,000. Dividends of £539,000 were paid during the period, according to company accounts.
It is understood Torsion Construction is currently working on 12 live sites in Manchester, Leeds, and Sheffield. These include the 234-unit Hollis Croft BTR scheme in Sheffield, a 35-storey PBSA scheme for Torsion Group and Citylife which topped out in December, and Zentra’s One Victoria, a 129-unit apartment scheme on Great Ducie Street in Manchester that is nearing completion.
In a statement the firm said: “Torsion Group confirms that the directors of Torsion Construction Limited have filed a Notice of Intention to Appoint Administrators. This decision has not been taken lightly. It follows a prolonged period of exceptionally challenging trading conditions across the UK construction sector, together with a number of commercial events that have materially impacted the liquidity of the construction business. Over the past two years, Torsion Construction has experienced significant short-term liquidity pressures arising from a combination of delayed capital events, project-specific commercial matters, regulatory changes and wider market conditions.”
“In addition, the introduction of direct payment arrangements on a number of projects successfully protected clients, supported project continuity and safeguarded payments to many supply chain partners, but significantly reduced the working capital available to the construction business. The Notice of Intention provides a period of legal protection while the Board continues to work closely with its investors, funders and professional advisers to pursue a number of advanced liquidity initiatives and determine the best possible outcome for the business and its stakeholders. This process relates solely to Torsion Construction Limited. Torsion Care, Torsion Homes and Torsion Developments all continue to operate and remain focused on delivering for their customers, investors and funding partners. Torsion Care & Torsion Projects are operationally and contractually independent from Torsion Construction Limited and continue to trade as normal.”
“Over recent years, the Group has been implementing a strategic transition towards Construction Management and Development Management activities. This reflects a deliberate move towards a lower-risk, more capital-efficient operating model that is better aligned with current market conditions, while retaining the expertise, relationships and delivery capability that have always underpinned the business. Our immediate priorities are to support our employees, maintain continuity across live projects wherever possible, work constructively with our clients, funders and supply chain partners, and achieve the best possible outcome for all stakeholders. We recognise that today’s announcement will create uncertainty and concern, and we would like to thank our employees, clients, consultants, investors, funders and supply chain partners for their continued professionalism, loyalty and support during this period. Further updates will be provided as the process progresses.”
Highlights:
- Leeds-based contractor Torsion Construction has filed a Notice of Intention to Appoint Administrators (NOI) following a prolonged period of liquidity pressures
- The company, established in 2015, is believed to be working on 12 live schemes, predominantly in the north of England
- It said the decision follows exceptionally challenging trading conditions, project-specific commercial issues and reduced working capital despite measures taken to protect clients and supply chain payments
- Last year, Torsion recorded revenues of £164 million, up from £117 million in 2024, and a pre-tax profit of £800,000
