Failed modular contractor lost more than £20m in first four months of this year

A modular construction specialist which collapsed last month lost more than £20m in the first four months of this year, an administrat6or’s report has revealed.

Elements Europe was set up in 2005 and was based in Telford and specialised in off-site volumetric design and manufacturing of room modules and bathroom pods for residential developments, student accommodation and hotels.

But it collapsed into administration last month aft6er racking up loss of more than £55m in 2023 and 2024 – which were mainly blamed on two construction projects it took on as main contractor.

The first was in Hackney, east London – called the East Road Project – with the second a project called Camp Hill in Birmingham.

Administrator Interpath said its losses in 2023 and 2024 were “primarily due to cost overruns and water ingress defects on various projects”.

And it revealed that in its first four months of trading this year, Elements Europe lost close to £23m by the end of April, taking total losses to close to £80m in less than two and a half years. “The Company remained solvent only as a result of unsecured shareholder loans,” Interpath added.

Interpath was called in early last month after a plan to sell the business failed and in its report the firm said 199 of Elements’ 217 staff have been made redundant.

Unsecured creditors are owed £8.7m while employees are owed a further £707,000. “Based on current realisation levels and anticipated costs, it remains uncertain whether a dividend will be paid to unsecured creditors,” Interpath added.

Interpath’s report showed that Elements Europe also owed £71.8m to its majority South Korean owner GS Engineering & Construction (GS).

GS has since taken over the running of a 21-storey office and hotel scheme in east London.