South London contractor Claritas Group is set to be liquidated following issues caused by inflation.
Chief executive and founder Jon Wardle said in a statement that the firm had started the process of a creditors’ voluntary liquidation.
“The challenge of cash flowing and managing the losses associated with the inflationary pressures of these uncertain times was just too great,” he said.
Bromley-based Claritas was founded in 2014 as Airey Miller Construction before becoming AMCM and then Claritas Group in 2020. It underwent a rapid expansion in recent years, and specialised in both residential and commercial projects.
According to its accounts for the year ending 31 March 2022, Claritas turned over £50m – more than double the revenue of three years earlier, when it stood at £23.6m.
The group owed creditors £1.25m at the end of March 2022, up from £662,460 in 2021.
Wardle apologised for the impact of the firm’s demise on customers’ “projects, people and businesses”, and thanked them for their support during recent challenging times.
“To our supply chain who supported us to the end: I thank all of you and I am truly sorry for the impact on you, your respective employees and supply chains. In many ways, you are the most important cog in our diverse and fragmented industry,” he said.
Wardle, who was formerly a regional commercial director at Wates, concluded that he was “truly sorry if you are being affected by the Claritas Group’s failure in any way”.
In November 2021the firm was named as the replacement contractor on a £50m student-accommodation build in South Wales (pictured), called True Student Swansea, after the collapse of Create Construction. Create, which had also expanded rapidly in prior years, blamed the impact of rising costs for its demise.
As well as contracting, Claritas Group has development and plant-hire subsidiaries.