The £42m-turnover company, established in 2005, operated a manufacturing facility based in Telford, Shropshire. It specialised in the off-site volumetric design and production of room modules and bathroom pods, primarily serving residential schemes, student accommodation, and hotel developments across the UK. Reports Contract Journal
Traditionally, the business functioned as a subcontractor, supplying modular units and bathroom pods to its client base. However, in 2021, Elements expanded its scope by taking on two main contracting roles for construction projects in Hackney, East London, and Birmingham.
Unfortunately, both projects resulted in substantial losses, creating a significant strain on the company’s cash flow. In an attempt to secure the business’s future, the directors explored potential options for a sale, investment, or refinancing. Despite these efforts, the company ultimately entered administration.
Sam Birchall, managing director at Interpath and joint administrator, said: “Sadly Elements Europe has not been immune to the headwinds facing the construction sector. Our 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.”
At the time of administration, the firm employed 217 staff. Of these, 141 were made redundant, while 76 have been retained to assist the Joint Administrators with ongoing operations.
Steve Absolom, managing director at Interpath and joint administrator, said: “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.”
According to the company’s most recent financial results for the year ending 31 December 2023, it reported a turnover of £42m and a pre-tax loss of £29.5m.
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