Most existing staff to be transferred to new owner
Failed offsite schoolbuilder Eco Modular has been bought out of administration by Spatial Initiative Ltd.
The Hull-based construction business, which has been in operation since 2011, filed an administration notice roughly a month ago and later appointed PwC to oversee the process.
Joint administrators Jane Steer, Tim Higgins and Peter Dickens said the sale of the business, for an undisclosed fee, represented 鈥渢he best option available鈥� to creditors, to whom Eco Modular owed 拢5m, given the 鈥渟everely limited timescales鈥�.
The 鈥渧ast majority鈥� of the company鈥檚 65 employees will be transferred to the buyer, PwC added.
Latest accounts for Eco Modular for the year to December 2021 showed a turnover of 拢33.5m, along with a pre-tax profit of 拢244,000.
Explaining its decline, the administrators said the group had experienced 鈥渁 series of challenges鈥� from 2020 which meant it required additional funding to continue trading.
鈥淭hroughout 2022 the Group continued to experience significant delays on projects, resulting in operating losses, eroding the working capital available to the Group,鈥� they continued.
PwC was appointed to review its cash flow and carry out an independent business review last August, which resulted in a decision by the firm鈥檚 management that a sale was the most appropriate course of action.
Steer said: 鈥淭he completion of this transaction provides much needed certainty to over 50 members of staff after a period of understandable concern following the Group鈥檚 challenges over the past months.鈥�
In its last set of accounts for the year to December 2021, Manchester-based Spatial Initiative had a turnover of 拢18m and a pre-tax profit of 拢669,000.
No comments yet