Elements Europe failed after an attempted move from subcontracting to main contractor.
After heavy contract losses, it South Korean owners called time.
Sam Birchall and Steve Absolom from Interpath Advisory were appointed joint administrators of Elements (Europe) Limited on Wednesday 4th June 2025.
The immediately made 141 of the company’s 217 employees redundant, with 76 retained to help the administrators with their duties.
Elements Europe was incorporated in 2005 and traded from a manufacturing facility in Telford. In 2019 it was taken over by South Korean construction giant GS Engineering & Construction.
It specialises in off-site volumetric design and manufacturing of room modules and bathroom pods for use in residential developments, student accommodation, and hotels across the UK.
Historically, the business acted as a subcontractor providing room modules and bathroom pods to its customer base. In 2021, the company expanded its offering and took on two construction projects as main contractor: the East Road project in Hackney, east London; and the Camp Hill project in Birmingham.
According to the administrators, both of these contracts incurred losses, resulting in a significant cash requirement. In response, the directors sought to explore options for the sale, investment and/or refinancing of the company. But when it became clear that a solvent outcome was not possible, the directors took steps to protect the interest of creditors by placing the company into administration.
The company had already been losing money even before these contracts went south. Latest accounts show that turnover in 2023 was £42m, which was double its 2022 turnover, but with a loss for the year of £29.5m, having made a loss of £5.7m in 2022.
Joint administrator Sam Birchall 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.”
Got a story? Email news@theconstructionindex.co.uk
#Koreans #pull #plug #Elements #Europe