Directors at the construction company, which reported an annual turnover of £165 million, had been exploring a range of rescue options before worsening trading conditions across the UK construction sector forced the business into administration.
The Enquirer understands the company has been working with stakeholders to arrange direct payments to subcontractors in an effort to reduce disruption across its supply chain, while the majority of its 115 employees have been made redundant.
At the time of the administration, the construction division was delivering work across 12 active sites and is continuing to work with project funders to secure the completion of as many developments as possible.
In a statement the firm said: “Torsion Group confirms that Torsion Construction Limited is in administration.
“This follows a prolonged period of exceptionally challenging trading conditions across the UK construction sector, together with a number of project-specific commercial events that placed unsustainable pressure on the liquidity of the construction business.
“Over the past two years, Torsion Construction experienced rising costs, reduced construction activity, delays to significant capital events and a number of major commercial challenges.
“The introduction of direct payment arrangements on several projects successfully protected clients, maintained project delivery and safeguarded payments to many supply chain partners, but significantly reduced the working capital available to the construction business. Despite extensive efforts to secure a sustainable solution, administration became the only viable option.
“This process relates solely to Torsion Construction Limited.
“All other Torsion businesses, including Torsion Care, Torsion Projects, Torsion Homes, Torsion Developments, continue to operate as normal and remain focused on delivering for their clients, customers, investors and funding partners.
“Our immediate priorities are to work closely with the administrators, support employees affected by the administration, assist subcontractors and suppliers wherever possible, and continue working constructively with clients, investors, funders and other stakeholders to minimise disruption across live projects.
“Torsion has already been progressing a strategic transition towards Construction Management and Development Management activities, reflecting a lower-risk, more capital-efficient delivery model better suited to current market conditions while retaining the expertise and relationships that have always underpinned the business.
“We recognise this will continue to be an unsettling time for many people and thank our employees, clients, consultants, investors, funders and supply chain partners for their continued professionalism, support and patience.
“Where appropriate, further updates will be provided as the administration process progresses.”
James Clark, Managing Director at Interpath and Joint Administrator of Torsion Construction Limited said: “Torsion Construction has faced many of the immense challenges that have confronted leadership teams right across the sector. Despite its efforts to find a sustainable solution and protect its clients from those pressures, the business’ liquidity ran out of road.
“With regret, Torsion Construction could not continue in its current form and was left with no other option but to cease trading. We have a team providing the appropriate information and support to staff as we work through an orderly wind down of operations.”
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