Offsite construction specialist Elements Europe has gone into administration after moving into main contracting.
The £42m turnover firm had been in business since 2005 with a manufacturing facility located in Telford, Shropshire.
The company specialised in off-site volumetric design and manufacturing of room modules and bathroom pods for use in residential developments, student accommodation, and hotels across the UK.
Historically the business acted as a subcontractor providing room modules and bathroom pods to its customer base.
In 2021 Elements expanded its offering and took on two construction projects as main contractors in Hackney, East London and in Birmingham.
Both the contracts incurred losses resulting in a significant cash requirement.
In response the directors sought to explore options for the sale, investment or refinancing of the company but ended up in administration.
Sam Birchall, managing director at Interpath and joint administrator, said: “Sadly Elements Europe has not been immune to the headwinds facing the construction sector. Our intention is to pause work on the ongoing contracts at East Road and Camp Hill whilst we explore options to rescue all or parts of the Elements business.”
The company had 217 employees with 141 made redundant while 76 members of staff have been retained to support the Joint Administrators with their duties.
Steve Absolom, managing director at Interpath and joint administrator, said: “As a priority, we will be providing support to those employees who have been impacted by redundancy. We are also seeking buyers for the Company’s assets, and would invite interested parties to make contact with us as soon as possible.”
Latest results for the firm for the year to December 31 2023 show a turnover of £42m and a pre-tax loss of £29.5m.
from Construction Enquirer https://ift.tt/o40Jl3V