Company called Merit Industrialised Construction began trading earlier this month
A new offsite construction business called Merit Industrialised Construction has emerged out of last year’s collapse of Merit Holdings.
According to an administrators’ report earlier this month, Merit, whose other main trading businesses, Merit Group Services Limited and Merit Health Limited also collapsed, went under owing unsecured creditors more than £17m.
Interpath Advisory said contract disputes and project delays helped send the specialist, that once had plans to be a £450m turnover business, into administration last November.
In its report, Interpath said it completed a “substantial disposal of certain assets of the Group” to a company called Merit Industrialised Construction for £396,000 just before Christmas. The firm formally began trading on 5 January.
According to Companies House records, two directors of Merit Industrialised Construction were also directors of Merit Holdings.
The new firm will be based at its former site in Cramlington, Northumberland, and has been set up by “a group of former Merit directors, together with Modulex and HBEM, [to establish] Merit as a new, independently capitalised company”.
In a statement to Building, the firm said: “At this early stage, our focus is less on headline turnover or employee numbers and more on positioning the business to support sustained growth.
“Demand for industrialised, offsite facilities continues to increase and Merit Industrialised Construction has been established with a scalable model, strengthened governance and access to global manufacturing capability through Modulex and HBEM to meet that demand.
“Turnover and headcount will grow in line with secured pipelines and market need, with a deliberate focus on long-term, sustainable delivery for clients both nationally and internationally.”
It added: “The business currently employs a select core team, all of whom are previous Merit employees.”
Modulex is described as a global modular construction company backed by London-based Red Ribbon Asset Management, while HBEM is a specialist in advanced manufacturing environments.
Modulex, whose group managing director James Withey is joining the Merit board, said it is investing in a new 40-acre manufacturing facility in Mumbai, designed to produce fully fitted steel modular buildings, bathroom pods and doors and windows.
Suchit Punnose, founder of Red Ribbon Asset Management, said: “We have been talking to the Merit team for some time with regard to working together. The Merit platform provides Modulex with the IP to grow into new markets nationally.”
Merit will be led by chief executive Tony Wells who set up the original business in 2002. He said: “Merit represents a new chapter. The business has been established with new investment partners, new governance and a refreshed operating model.”
HBEM is chaired by Brad Antin, who also owns Caddy Group, a specialist construction recruitment business. He said: “This partnership brings together capital, intellectual property and international capability.
“It is positive that the research, development and innovation embedded within the acquired IP can now be progressed and made available to clients in the UK and overseas through a newly formed organisation.”
According to Interpath’s report, Merit employed 284 people when it collapsed and in the year to June 2025 had a turnover of £80m.
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