Top Service News
Construction cash flow is tightening, Our Ceo Emma Reilly FCICM explains what it means for your business.
Published on
We are midway through the first month of 2026, and from all of us at Top Service Ltd, we wish you a very happy New Year.
As we move into 2026, the UK construction sector continues to operate in a uniquely challenging environment. Economic data from late 2025 shows construction output remained subdued, driven by weaker demand across both residential and commercial markets. While there have been pockets of resilience, particularly within civil engineering, overall confidence across the industry remains cautious.
One of the clearest indicators of this pressure has been insolvency levels. Throughout 2025, construction continued to account for one of the highest proportions of corporate insolvencies in the UK, often representing around 16–17% of all business failures. Smaller and specialist subcontractors were particularly exposed, highlighting just how vulnerable businesses can be when operating on tight margins and under cash-flow pressure.
Although insolvency figures fluctuated during the year, the underlying trend was consistent: financial stress remains a significant risk across the supply chain.
At Top Service Ltd, we spent time reviewing the insolvencies in 2025 that had the greatest impact on the construction sector — and on businesses like yours. Two examples stand out.
Corbyn Construction Ltd entered administration on 15 May 2025, with over £120,000 in County Court Judgments at the point of appointment. Our team issued an early warning in November 2024, enabling members using our services to act decisively. As a result, almost £1 million in overdue invoices was successfully recovered before administration.
Similarly, Sheen Lane Developments Ltd went into administration on 26 March 2025, with £246,000 in outstanding CCJs. Following an early warning issued in October 2024, our team successfully collected £250,000 for members prior to the company’s collapse.
These examples clearly demonstrate the importance of reacting early to changes in credit information, accelerating escalation when risk indicators appear, and managing overdue invoices on a case-by-case, informed basis rather than relying on generic processes.
Our team also identified a significant rise in scams and fraud during 2025, with last year described internally as the most challenging they have experienced in this area. Fraud continues to have a serious impact not only on individual businesses, but on confidence across the wider construction industry.
We understand that as we head into 2026, anyone responsible for credit management within construction is facing pressure from every direction — including:
- Late payments and ongoing cash-flow strain
- Rising labour, material, and operational costs
- Increased overtrading risk as businesses chase volume
All of these factors reinforce the need for robust, proactive credit management — something we take very seriously at Top Service Ltd.
By working with us, you gain access to our market intelligence, specialist services, and experienced team, all focused on protecting your cash flow and reducing your exposure to risk. Now is the right time to ensure you fully understand where and how we can support your business.
Please contact us to explore how Top Service Ltd can help you strengthen your credit processes — and together, let’s make 2026 a more secure and successful year.