The Cost-Benefit Analysis of Installing Fire Sprinklers – Real-World Examples

When it comes to fire protection, the question isn’t just “Can we afford a sprinkler system?” but rather “Can we afford not to have one?” Thousands of businesses across the UK have discovered that without robust fire safety protocols—including automatic sprinklers—the financial, operational and reputational consequences can be devastating.

Below we share real examples of what happens when fire safety is lacking, and how installation of a proper system could have made all the difference.

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Example 1: Un-sprinklered warehouse destroyed – Gardman, Daventry

In March 2023, a newly-opened warehouse belonging to Gardman (a garden supplies distributor) was completely destroyed by fire. The building had no sprinkler system.

• Estimated stock loss: £20 million in garden-products.
• Turnover of the business (before fire): approx. £60.5 million, so the loss was a significant proportion.
• The rebuilding cost for the warehouse was projected at over £30 million, compared to what the sprinkler installation cost might have been.
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Key takeaway: A large company with a high value of stock and distribution commitments suffered catastrophic losses simply because a critical protection measure (sprinkler coverage) was omitted.

Example 2: Business fails to recover – Total Polyfilm, Lancashire

In May 2016, Total Polyfilm (a plastics manufacturer) experienced a fire at their unsprinklered factory.

• A business with £50 million turnover went into administration some years later due in part to the effects of the fire.
• The factory was fully destroyed, numerous jobs lost (200 jobs) after the fire.
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Key takeaway: Even a profitable business can collapse if fire safety is inadequate and recovery is delayed and complicated.

Example 3: Massive industrial estate fire – Bridgend, Wales

In January 2024, a 20,000 m² warehouse housing multiple businesses was destroyed by fire. The site had no sprinkler system.

• The blaze required large-scale fire-service mobilisation (10 fire crews, aerial ladders, etc).
• Multiple businesses lost premises, stock and continuity.
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Key takeaway: For multi-occupant industrial estates, the ripple effect of fire without sprinklers impacts many businesses—not just one owner.

Example 4: Fire safety failures / regulatory fines – Care Homes & Property Management

Poor fire safety doesn’t always result only in fire damage, but also regulatory enforcement and reputational damage. Two examples:

• Directors of a care-home company were fined nearly £125,000 after pleading guilty to multiple fire-safety offences across four premises.
• A property-management firm and its director were fined and ordered to pay costs after substandard fire safety practices that put residents at risk.
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Key takeaway: Substandard fire safety protocols—even without a major fire—can lead to heavy financial penalties, regulatory action, and potential business collapse.

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What These Examples Tell Us

1. Loss of stock, business interruption and rebuild costs can be massive.
   In the Gardman case, £20 million of stock was lost. In Total Polyfilm, the business collapsed despite previously healthy turnover.
2. The absence of sprinklers or other fire-suppression systems multiplies the damage.
   Several of the examples note explicitly that sprinkler systems were absent. Rapid fire spread, structural damage and business interruption followed.
3. Recovery can be slow or non-existent.
   Even where rebuilding is possible, many businesses never return to their pre-fire revenue or may fail altogether.
4. Regulatory & reputational risks come with inadequate fire safety.
   Fines, legal action, and loss of trust can follow from safety failures—even before fire occurs.
5. Choosing the “cheaper” short-term route often means higher long-term cost and risk.
   In many cases the savings from omitting a sprinkler system pale compared to losses after fire or penalties after failings.

How Installing Fire Sprinklers Mitigates These Risks

• Automatic sprinkler systems help to detect and suppress fires quickly, limiting spread and structural damage.
• They reduce business-interruption time, enabling companies to resume operations faster.
• They strengthen your fire-safety credentials—helping with insurance, regulatory compliance and building occupant confidence.
• They reduce the risk of large losses (stock, property, downtime) which—as the examples show—can dwarf the installation cost.

Why This Matters for Your Building / Business

At A&F Sprinklers we see first-hand how effective fire-sprinkler systems help protect businesses like yours. Whether you operate a warehouse, factory, hotel, residential block or commercial office, the cost of not having adequate protection can far exceed the cost of doing things properly.
With many major companies and estates facing £10’s-100’s of millions in losses or remediation (for example the remediation bill for the former Olympic Village was estimated at £432 million), it becomes clear that fire-safety is both a risk management and asset-protection strategy.

Conclusion

When you compare the futures of the companies in the examples above with those that had effective sprinkler protection, the message is clear: investing in fire-sprinkler systems is not simply a cost—it is a safeguard for continuity, asset protection and long-term business viability.

If you’d like to explore how a tailored sprinkler solution could protect your premises, assets and people, we’d be happy to provide a consultation and walk you through the options.

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