Thu, 30 Nov 2023 | BUSINESS SALE
The business and assets of Module-AR Ltd, a modular construction firm based in Hull, have been acquired out of administration by a third party. The company fell into administration last month following a period of huge growth.
The firm reported turnover of close to £30 million in the year to April 2022, up 49 per cent from a year earlier. This followed a year in which its turnover had roughly tripled from £6.2 million in 2020. In 2022, the company also purchased a 100,000 sq ft new base on Hull’s Freightliner Road, a significant expansion from its previous facility, giving it the capacity to produce around 400 units per year.
The company had also seen growth in its order book last year and had completed a variety of major projects, including a 64-unit retirement village in Doncaster. However, in its most recent accounts, the company warned about the potential impact of project delays and rising prices.
While its turnover increased significantly in its accounts to April 2022 and pre-tax profits rose from £802,054 to £818,823, its margins began to be impacted and post-tax profits fell from £783,203 in 2021 to just under £640,000. At the time, the company owed creditors close to £7.1 million.
Dean Watson and Paul Stanley of Begbies Traynor were subsequently appointed as joint administrators of the company alongside Rikki Burton of Anderson Brookes on 27 October 2023. The joint administrators undertook a marketing campaign and entered into negotiations with several potential buyers, prior to ultimately securing a rescue deal. The sale of Module-AR's business and assets as a going concern, to an as-yet unnamed third party, secures more than 70 jobs.
Begbies Traynor partner and joint administrator Dean Watson commented: “We are pleased to have completed a going concern sale of the business, which safeguards the jobs of a loyal and skilled workforce. These are particularly challenging economic times for everyone in the construction sector but this acquisition saves jobs and enables operations to continue.”
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