20-year-old Elements (Europe) Limited specialised in room modules and bathroom pods

More than 140 jobs have gone after a Shropshire-based modular construction specialist collapsed into administration yesterday (Wednesday).

Elements (Europe) Limited 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.

Sam Birchall and Steve Absolom from Interpath have now been appointed joint administrators, saying 141 staff have been made redundant with a further 76 kept on to assist with the administration.

elements

Elements Europe was set up in 2005

Interpath said the firm had historically acted as a subcontractor but four years ago took on two construction projects as main contractors in Hackney, east London 鈥� called the East Road Project 鈥� and a project called Camp Hill in Birmingham.

Interpath said: 鈥淯nfortunately, both these contracts have incurred losses, resulting in a significant cash requirement. In response, the directors sought to explore options for the sale, investment, and/or refinancing of the Company; however, when it became clear that a solvent outcome was not possible, the directors took steps to protect the interest of creditors by placing the Company into Administration.鈥�

Birchall said: 鈥淥ur 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.鈥�

Absolom added: 鈥淲e are also seeking buyers for the Company鈥檚 assets and would invite interested parties to make contact with us as soon as possible.鈥�

In its last set of results, filed last October for the year to December 2023, Elements Europe saw turnover nearly double to 拢42m but pre-tax losses widened considerably from 拢5.8m to 拢29m.

In a note accompanying the accounts, the firm said the initial provision for loss-making contracts was 拢15.6m but a review last August revised it upwards to 拢29m. 鈥淸This] was unknown when the 2023 accounts were initially prepared,鈥� it added.

鈥淭he Directors expect 2024 to be considerably better after many cost saving measures have been undertaken.鈥�

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