Leeds-based Torsion Construction Limited has filed a notice of intention to appoint administrators as its directors pursue funding and restructuring options for the £165m-turnover contractor. The filing, made on 20 July 2026, gives the construction business a short period of legal protection from most creditor action while discussions continue with investors, funders, clients and professional advisers.
It is an important development, but it does not mean that Torsion Construction has already entered administration. No administrator had been appointed at the time of publication, leaving several potential rescue and restructuring routes open.
LCM assessment: the notice is serious, but it should be understood as a protected window for negotiations rather than confirmation that the business has reached the end of the road. Torsion’s directors are still pursuing options that could preserve projects, employment and parts of the construction operation.
Jump to: What has Torsion filed? | How the contractor grew | Why growth did not prevent pressure | Direct-payment arrangements | What happens to live projects? | One Victoria update | Wider Torsion businesses | Employees and supply chain | What happens next? | LCM verdict | FAQ
What Has Torsion Construction Filed?
Torsion Construction Limited has filed a notice of intention to appoint administrators. The filing creates temporary legal protection while the company considers whether additional funding, investment, a sale or another restructuring solution can be completed. A notice of intention is not the same as an administrator being formally appointed. The company remains responsible for its operations during this period, although significant decisions will need to be coordinated closely with its lenders, advisers, clients and other stakeholders.
Torsion said the decision followed a prolonged period of difficult UK construction-market conditions and a number of commercial events that had materially affected the liquidity of the construction business. The company identified delayed capital events, project-specific commercial matters, regulatory changes and wider market conditions as pressures experienced over the previous two years.
Its board is continuing to work with investors, funders and professional advisers on liquidity initiatives. Immediate priorities include supporting employees, maintaining continuity on live projects where possible and working constructively with clients and supply-chain partners.
The filing provides time for a solution to be negotiated. Formal administration remains possible, but it is not the only available outcome.
How Torsion Construction Became a £165m Contractor
The situation is particularly significant because Torsion Construction had experienced substantial growth during the previous three financial years. Turnover increased from approximately £56.9m in the year to June 2023 to £117.2m in 2024. It then rose by another 41% to approximately £165.4m in the year ending 30 June 2025.
Pre-tax profit also increased, moving from approximately £116,000 in 2023 to £404,000 in 2024 and £814,000 in the latest reporting period. Operating profit exceeded £1m in 2025. The growth was supported by larger contracts, an expanded regional presence and work across purpose-built student accommodation, build-to-rent, residential and retirement-related developments. Management had previously referred to a secured project pipeline of around £660m, while external clients represented approximately 61% of the construction company’s latest annual turnover.
| Financial year | Turnover | Pre-tax profit | Approximate pre-tax margin |
|---|---|---|---|
| 2023 | £56.9m | £116,000 | 0.2% |
| 2024 | £117.2m | £404,000 | 0.3% |
| 2025 | £165.4m | £814,000 | 0.5% |
At first glance, the figures describe a successful and expanding regional contractor. The difficulty becomes clearer when the profits are considered in relation to the volume and complexity of work being delivered.
Why Rising Turnover Did Not Prevent Liquidity Pressure
Construction businesses do not fail solely because they lack turnover. They can also encounter serious pressure when the cash required to deliver work leaves the business faster than payments are collected. Torsion Construction’s pre-tax margin remained at approximately half of one per cent in its latest reported year. Some industry reporting referred to a margin of around 0.7%, which appears to correspond more closely with operating profit.
At either level, the available margin was narrow compared with the size of the contracts being managed. A relatively modest cost overrun, delayed payment, disputed account or programme change could absorb a significant proportion of annual profit. Cash reportedly reduced from approximately £5.5m to £3.5m during the latest financial period, despite turnover and reported profit increasing. This does not mean the company was necessarily making operational losses across every project. It demonstrates that accounting profit and available working capital are not the same thing.
A contractor can recognise revenue and profit in its accounts while still waiting for certified payments, funding retention balances, carrying disputed variations or paying wages and subcontractors ahead of receiving corresponding cash from a client.
Turnover shows the volume of activity passing through a business. It does not show how much unrestricted cash is available to meet payroll, project overheads and supply-chain commitments at a particular moment.
Direct Payments Protected Projects but Reduced Torsion’s Working Capital
The most important commercial explanation provided by Torsion concerns direct-payment arrangements introduced on a number of projects. The company said these arrangements protected clients, supported project continuity and safeguarded payments to many supply-chain partners. However, they also significantly reduced the working capital available to Torsion Construction.
Direct payments can be introduced where a developer or funder wants greater certainty that money will reach the subcontractors and suppliers carrying out the work. Instead of the full certified payment passing through the main contractor, some money may be paid directly to key trade contractors or material suppliers. This can be positive for the project. It can keep labour and materials on site, reduce disruption and give subcontractors confidence that current work will be paid.
The difficulty is that the main contractor may still be carrying site management, supervision, temporary services, insurance, plant, head-office costs, wages and other project overheads while receiving a smaller proportion of the project’s overall cash flow. Where that arrangement applies across several major contracts at the same time, the cumulative pressure can become substantial. The same mechanism can therefore produce two outcomes simultaneously: it can protect individual projects and supply-chain businesses while weakening the liquidity position of the company responsible for coordinating the work.
Direct payments should not automatically be interpreted as evidence that a project has failed. In Torsion’s case, they may have helped preserve work and supply-chain payments, but the company says they reduced the cash available to support its wider construction operation.
Regulatory and Project Timing Added Further Pressure
Torsion also identified regulatory changes and delayed capital events among the factors affecting liquidity. Several projects associated with the contractor sit within the residential and student-accommodation sectors, where the Building Safety Act and the Building Safety Regulator’s Gateway process can influence design development, approval periods and construction sequencing. Torsion’s Kirkstall Road student-accommodation development in Leeds secured Gateway 2 approval in 2025.
There is no evidence that the Building Safety Act was the sole cause of the company’s position. However, approval periods, information requirements and changes to project start dates can delay cash-generating activity and increase pre-construction costs. For a contractor with thin margins and several large schemes progressing simultaneously, the timing of approvals and capital events can become commercially significant.
What Happens to Torsion Construction’s Live Projects?
Torsion Construction is understood to have approximately 12 live sites, principally involving student accommodation, build-to-rent, residential and retirement-related construction across the North and Midlands. A complete verified list of the contracts covered by the administration notice had not been published at the time of writing. Projects publicly associated with Torsion Construction include Sky Gardens in Leeds, Hollis Croft in Sheffield, Flax Place and Kirkstall Road in Leeds, Westminster Works in Birmingham and One Victoria in Manchester.
However, not every scheme associated with the Torsion name should automatically be treated as an affected live construction contract. Some developments may sit within separate group companies, some may be at planning or pre-construction stage and others may be approaching completion.
The next steps are therefore likely to differ by project.
Advanced projects: schemes close to completion may be supported through additional funding, direct payments or a replacement management arrangement.
Projects with direct payments: key subcontractors may already have greater protection, helping work continue while the main contract is reviewed.
Earlier-stage projects: clients may need to decide whether to support Torsion, transfer the contract or appoint another delivery team.
Development-led schemes: the impact will depend on which group company holds the development interest and which legal entity entered the construction contract.
One Victoria Demonstrates How Project Continuity Can Be Protected
The clearest project-level response has come from Zentra Group in relation to the One Victoria residential development in Manchester. Torsion Construction was appointed as principal contractor for the 129-apartment scheme, which is now at an advanced stage.
Zentra said apartment fit-out was substantially complete, external façade work was in its final stages and approximately eight weeks of construction activity remained once suitable arrangements were established. The developer is discussing completion options with a potential replacement contractor and key subcontractors. Practical completion is now expected during the final quarter of 2026.
Zentra also said it did not expect the contractor situation to have a material adverse effect on the recoverability of its £4.1m loan to the project developer. The update illustrates why a contractor filing does not automatically mean that a project will be abandoned. Where substantial value has already been created on site, the client, lender and supply chain generally have a strong commercial incentive to establish a controlled route to completion.
One Victoria shows the practical focus now required across Torsion’s portfolio: protect the site, retain project knowledge, keep key subcontractors engaged and create a funded route through to completion.
The Wider Torsion Group Says Its Other Businesses Continue Trading
Torsion Group has emphasised that the notice relates specifically to Torsion Construction Limited. Its Care, Homes, Developments and Projects businesses are continuing to trade, with parts of the group described as operationally and contractually independent from the affected construction company. The distinction between the legal entities is important. A notice filed by the construction subsidiary does not automatically place every company carrying the Torsion name into administration.
The group has also been moving towards construction-management and development-management services, which it considers a lower-risk and more capital-efficient operating model. Under a traditional design-and-build contract, the main contractor can carry extensive responsibility for cost, programme, procurement, design coordination and supply-chain payment.
A construction-management model can place more contracts and payments directly between the client and trade contractors, leaving the management business to concentrate on coordination, technical delivery and project control. For Torsion, that transition could provide a route to retain experienced staff, project relationships and sector expertise while reducing the working-capital exposure associated with multiple large fixed-price contracts.
What the Filing Means for Employees and the Supply Chain
The company’s latest reported average workforce was approximately 147 employees. There had been no confirmed announcement of widespread redundancies at the time of publication. Torsion instead identified employee support and project continuity among its immediate priorities. For subcontractors and suppliers, the position will depend on the contract, project stage and payment arrangement.
Current payments: businesses covered by direct-payment arrangements may have greater certainty over recently certified work.
Future instructions: subcontractors will need confirmation that new work is authorised and funded before increasing their exposure.
Retentions: money held under existing contracts may be treated differently from current direct payments and will require project-specific clarification.
Insurance and warranties: clients must preserve the continuity of design responsibility, product warranties and professional appointments.
Site control: clear authority will be needed over access, safety management, temporary works, material ownership and instructions to the supply chain.
A constructive outcome would retain existing project teams and subcontractor knowledge wherever commercially possible. Replacing an entire delivery structure can create additional delay, mobilisation cost and technical risk, particularly on projects approaching commissioning or practical completion.
What Happens Next for Torsion Construction?
Several realistic outcomes remain possible during the protection period.
New liquidity: additional funding or refinancing could stabilise the business and allow the notice to be withdrawn.
Investment or sale: an investor or buyer could acquire or recapitalise the construction operation as a going concern.
Contract transfers: individual projects could be novated to new contractors or placed under developer-led completion arrangements.
Construction management: some remaining works could move to a model where clients appoint and pay trade contractors more directly.
Pre-arranged transaction: if an out-of-court rescue cannot be completed, a sale could potentially be implemented through a formal administration process.
Formal administration: administrators may ultimately be appointed if the company cannot secure a viable alternative.
No single outcome should yet be treated as inevitable. The eventual position will depend on the immediate funding requirement, the commercial performance of individual projects and the willingness of clients, investors and lenders to support continuity.
LCM Verdict: A Serious Filing, but Rescue Options Remain Open
Torsion Construction’s notice is a serious development for its employees, clients and supply chain, but it is not simply the story of a contractor that failed to secure enough work. The company expanded rapidly, reported rising profits and built a substantial pipeline. Its difficulty appears to have been converting that activity into enough unrestricted cash to support a growing portfolio of large and complex projects.
Exceptionally thin margins, project-specific commercial issues, delayed capital events, regulatory pressure and direct-payment arrangements combined to reduce the financial room available to the construction business. The direct-payment arrangements appear to have protected many subcontractors and helped keep projects progressing. Their unintended consequence, according to Torsion, was to reduce the working capital available to support the main contractor’s own overheads and wider operations.
There are still reasons for cautious optimism. Several projects are at advanced stages, clients are already exploring controlled completion arrangements, the wider group says its other businesses continue to trade and Torsion has been moving towards a less capital-intensive operating model. None of those factors guarantees that a rescue will be achieved. Rapid and transparent information will be essential, particularly around employee positions, project authority, subcontractor payment and the status of individual contracts.
Final LCM assessment: Torsion Construction has obtained a limited period in which to protect project value and negotiate a sustainable outcome. The next stage should be judged by how much of the business, workforce and live project portfolio can be preserved—not simply by whether a formal insolvency appointment follows.
Frequently Asked Questions
Has Torsion Construction entered administration?
No administrator had been appointed at the time of publication. The company has filed a notice of intention to appoint administrators, which creates temporary legal protection while rescue and restructuring options are considered.
No administrator had been appointed at the time of publication. The company has filed a notice of intention to appoint administrators, which creates temporary legal protection while rescue and restructuring options are considered.
Why did Torsion Construction file the notice?
The company cited liquidity pressures arising from delayed capital events, project-specific commercial matters, regulatory changes, wider market conditions and direct-payment arrangements that reduced working capital.
The company cited liquidity pressures arising from delayed capital events, project-specific commercial matters, regulatory changes, wider market conditions and direct-payment arrangements that reduced working capital.
Was Torsion Construction losing money?
Its latest reported accounts showed turnover of approximately £165.4m and pre-tax profit of around £814,000. The main concern appears to be liquidity and working capital rather than a simple absence of revenue or reported profit.
Its latest reported accounts showed turnover of approximately £165.4m and pre-tax profit of around £814,000. The main concern appears to be liquidity and working capital rather than a simple absence of revenue or reported profit.
How many live projects are affected?
The contractor is understood to have approximately 12 live sites, although a complete verified list had not been released at the time of publication.
The contractor is understood to have approximately 12 live sites, although a complete verified list had not been released at the time of publication.
Will the projects stop?
Not necessarily. Some projects may continue through direct payments, additional client support, contract transfers, construction-management arrangements or the appointment of replacement contractors.
Not necessarily. Some projects may continue through direct payments, additional client support, contract transfers, construction-management arrangements or the appointment of replacement contractors.
Are Torsion’s other businesses affected?
Torsion Group says its Care, Homes, Developments and Projects businesses continue to trade and that the current process relates specifically to Torsion Construction Limited.
Torsion Group says its Care, Homes, Developments and Projects businesses continue to trade and that the current process relates specifically to Torsion Construction Limited.
Can Torsion Construction still be rescued?
Yes. Potential routes include new funding, refinancing, investment, a business sale or project-by-project restructuring. Formal administration remains possible but is not yet the only available outcome.
Yes. Potential routes include new funding, refinancing, investment, a business sale or project-by-project restructuring. Formal administration remains possible but is not yet the only available outcome.
Sources and methodology: This editorial analysis was prepared using information available on 21 July 2026 from Companies House. The legal and project position may change quickly following publication. London Construction Magazine will update its reporting when further official filings, restructuring announcements or project-level statements become available.
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Expert Verification & Authorship: Mihai Chelmus
Founder, London Construction Magazine | Construction Testing & Investigation Specialist |
