Thu, 05 Jun 2025 | ADMINISTRATION
Administrators are seeking a buyer for a £42 million-turnover offsite construction specialist based in Shropshire. Elements Europe has been operating since 2005, but fell into administration amid ongoing headwinds in the UK construction sector.
The company operated from a manufacturing facility in Telford and specialised in off-site volumetric design and manufacturing of room modules and bathroom pods, which were used across a range of settings, including hotels, residential developments and student accommodation.
The business had historically operated as a subcontractor, providing room modules and bathroom pods to customers, but in 2021 expanded its offering and served as main contractor on two construction projects in East London and Birmingham.
Both of these projects incurred losses, resulting in the business having a significant cash requirement. The firm’s directors subsequently sought to explore options, including a potential sale, investment or refinancing.
However, these efforts proved unsuccessful, and the company was forced to enter administration, with Steve Absolom and Sam Birchall of Interpath Advisory appointed as joint administrators. 141 of the company’s 217 staff were made redundant upon the appointment of the joint administrators, with 76 staff retained to assist in the process.
Sam Birchall said that the company had “not been immune to the headwinds facing the construction sector” and that the joint administrators intended to pause work on the firm’s ongoing contracts in East London and Birmingham while exploring options to rescue all or parts of the business.
Steve Absolom added: “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.”
In accounts for the year to December 31 2023, the company reported revenue of £42 million, up from £21.9 million a year earlier, but saw its post-tax losses increase significantly from £5.7 million to £29.5 million.
At the time, its fixed assets were valued at £5.4 million and current assets at £25.1 million. However, its net liabilities exceeded £17.5 million.
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