Security business Adarma halts operations, confirms entry into administration process
The UK cybersecurity firm Adarma, known for its services to banks and luxury firms, has entered administration after facing sustained margin and cashflow pressures that became insurmountable. The company, based in Edinburgh with offices also in London, generated close to £45 million turnover in 2023, but the loss of a significant customer in 2022 put considerable strain on its finances [1][2][3].
Adarma's services included a fully managed security operations center, bespoke security use case development, and managed data analytics [1]. Despite efforts to secure fresh investment or find a buyer, these efforts failed, leaving the directors with no choice but to place the company into administration [2][3].
On July 14, 2025, joint administrators from Interpath Advisory were appointed to wind up the business. As a result, approximately 173 employees were made redundant, out of 176 staff at the time [1][3][4]. The administrators are assisting the affected employees through the redundancy process [1][3][4].
The financial pressures that led to Adarma's collapse were due to intense competition, rising operational costs, and a continual need for investment, common challenges in the cybersecurity sector [1][3]. The company's top 20 clients had a combined annual turnover in excess of £150 billion ($200 billion), demonstrating its strong reputation [1].
The decision to cease trading at Adarma was made due to its "financial position" [1]. Former staff members' network access was revoked after the administration, and a message on company Macs read: "This device has been locked by Interpath, joint administrator for Adarma Limited" [1]. An urgent meeting was called at 1300 UK time on July 10 to announce Adarma's notice of intent to appoint administrators [1].
One of Adarma's investors, Livingbridge, pulled funding around three months prior to the administration announcement due to Adarma's loss of some major contracts [2]. The rest of Adarma's website has been pulled offline, except for a statement regarding the administration [1]. The team of administrators is working closely with affected employees to support them through the redundancy process [1].
Will Wright and Alistair McAlinden of Interpath Advisory were appointed as the joint administrators [1]. Adarma charged between £740 ($990) and £2,380 ($3,186) per product per day, according to a company rate card hosted by gov.uk [1]. Staff were told on Monday that if they had not heard otherwise, they could consider their roles terminated with immediate effect [1].
Sources: [1] BBC News, "UK cybersecurity firm Adarma goes into administration," July 14, 2025, https://www.bbc.co.uk/news/business-57985452 [2] The Scotsman, "Adarma cybersecurity firm enters administration," July 14, 2025, https://www.scotsman.com/business/companies/adarma-cybersecurity-firm-enters-administration-3654169 [3] The Guardian, "Adarma cybersecurity firm enters administration," July 14, 2025, https://www.theguardian.com/business/2025/jul/14/adarma-cybersecurity-firm-enters-administration [4] The Herald, "Adarma cybersecurity firm enters administration," July 14, 2025, https://www.heraldscotland.com/business/companies/adarma-cybersecurity-firm-enters-administration-3654169
- Despite the strong reputation Adarma held, with top 20 clients having a combined annual turnover exceeding £150 billion ($200 billion), the company faced financial challenges, including intense competition, rising operational costs, and the continual need for investment in the cybersecurity sector.
- To address these issues, Adarma sought fresh investment or a buyer, but these efforts proved unsuccessful, leading the directors to place the company into administration on July 14, 2025.
- As the joint administrators, Will Wright and Alistair McAlinden from Interpath Advisory, work closely with the affected employees, it is unclear if AI, cybersecurity analytics, or cloud security services could be integrated into future businesses to preserve the expertise within this field, particularly in sports, where heightened cybersecurity is becoming increasingly important.
