A modular building specialist which collapsed final month misplaced greater than £20m within the first 4 months of this yr, an administrat6or’s file has printed.
Components Europe was once arrange in 2005 and was once primarily based in Telford and specialized in off-site volumetric design and production of room modules and toilet pods for residential trends, pupil lodging and inns.
Nevertheless it collapsed into management final month aft6er racking up lack of greater than £55m in 2023 and 2024 – which have been basically blamed on two building tasks it took on as major contractor.
The primary was once in Hackney, east London – known as the East Highway Mission – with the second one a mission known as Camp Hill in Birmingham.
Administrator Interpath stated its losses in 2023 and 2024 had been “essentially because of price overruns and water ingress defects on quite a lot of tasks”.
And it printed that during its first 4 months of buying and selling this yr, Components Europe misplaced as regards to £23m by means of the tip of April, taking general losses to as regards to £80m in not up to two and a part years. “The Corporate remained solvent most effective on account of unsecured shareholder loans,” Interpath added.
Interpath was once known as in early final month after a plan to promote the trade failed and in its file the company stated 199 of Components’ 217 body of workers were made redundant.
Unsecured collectors are owed £8.7m whilst staff are owed an additional £707,000. “According to present realisation ranges and expected prices, it stays unsure whether or not a dividend might be paid to unsecured collectors,” Interpath added.
Interpath’s file confirmed that Components Europe additionally owed £71.8m to its majority South Korean proprietor GS Engineering & Building (GS).
GS has since taken over the operating of a 21-storey place of business and lodge scheme in east London.
