Elements Europe crashed into administration after a disastrous leap into main contracting triggered nearly £80m in losses, a bombshell report to creditors has revealed

The Telford-based modular specialist had built its reputation supplying bathroom pods and room modules, but its move into full-build projects saw losses spiral, plunging the business into administration last month.

In 2021, the firm stepped up from subcontractor to main contractor on a 23-storey hotel and office tower project at East Road in Hackney, and a 550-home build-to-rent scheme at Camp Hill in Birmingham. Both projects suffered severe cost overruns and water ingress issues, sending the business into a downward spiral.

Losses totalled £16.5m in FY23, surged to £41.2m in FY24, and deepened by another £22.9m in just the first four months of 2025.

The company stayed afloat only due to nearly £72m in unsecured loans from its majority shareholder, South Korean construction giant GS Engineering & Construction.

But by May this year, GS pulled the plug, refusing to inject any more funding. Efforts by corporate recovery and insolvency specialist Interpath Advisory to find a buyer or investor failed, forcing the directors to call in administrators on 4 June 2025.

In its creditors report, Interpath said: “Due to the continuing underperformance of the Camp Hill and East Road projects, the directors engaged us to assess options. No third-party offers were received, and GS confirmed they could not support the business further.”

Both projects were immediately shut down. The East Road contract was sold to GS Real Estate Development London for £100,000, while the Birmingham scheme was halted and its leftover stock and equipment is now being auctioned off.

Elements employed 217 staff when it went under – 199 have since been made redundant. Four transferred under TUPE and a small team remains to help wind down operations.

The modular firm went down owing around £8.7m to trade creditors.

Interpath warned it is still unclear whether unsecured creditors will see any return. Employees are expected to receive some payout, along with HMRC, but all other claims are on hold until asset sales are completed.