Fri, 11 Mar 2022 | ADMINISTRATION
Administrators are considering options, including a potential sale, after modular building firm Caledonian Modular fell into administration. The company, which is based in Edinburgh and has a manufacturing facility in Nottinghamshire, appointed administrators from Alvarez & Marshal earlier this week.
Caledonian Modular is a significant presence in the offsite market, working on numerous modular frameworks servicing jobs. The company designs and constructs permanent modular buildings, typically on a large scale, and works across markets including defence, hospitality, healthcare, residential and education.
The company’s registered headquarters is in Edinburgh, but it operates mainly from its head office and manufacturing facility in Carlton-on-Trent, Newark. The firm serves as both a principal contractor running projects end-to-end and as a modular specialist working alongside others.
In its most recent accounts, covering the year ending March 31 2020, the company reported a £2.8 million pre-tax loss on £45.3 million in turnover. However, in that report, directors said that they were confident of returning to stronger trading figures and forecast a profit in the year to March 31 2021. The firm also revealed that its principal shareholder MAK Capital had confirmed that it would continue to receive funding for at least a further year from March 2021.
However, the company has now filed for administration, with the business likely having been impacted by factors such as Brexit, the ongoing impact of COVID-19, supply chain issues and rising costs in materials and labour, which have affected a huge number of construction firms.
Mark Firmin and Mike Denny of Alvarez & Marsal were named as the firm’s joint administrators. An Alvarez & Marshal spokesperson said: "The administrators are continuing to trade the business while exploring all possible options for its future, including finding a new buyer.”
"Regrettably, 28 employees – around 10 per cent of the total workforce – have been made redundant as part of the administration process. Every effort will be made to support them during this difficult time."
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