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The company whose businesses include concrete frame firm J Reddington and contracting arm Midgard has snapped up stricken housing firm Caledonian Modular out of administration.

Administrators for the firm, which collapsed last month, said JRL Group鈥檚 move had saved 200 jobs at its Newark factory in the process.

Caledonian sank into administration more than three weeks ago after 60 years of trading with close to 30 jobs going following the appointment of administrator Alvarez & Marsal.

Announcing the sale to JRL, Mike Denny, managing director of Alvarez & Marsal, said 鈥淭he twin challenges of the pandemic and rising inflation have placed strain on balance sheets for businesses across the UK, including those in the construction sector.

鈥淲e are delighted to have secured a sale of the business to JRL Group, rescuing the UK鈥檚 largest modular construction specialist.鈥�

In its last set of accounts for the year to March 2020, Caledonian said income had shrunk from 拢50m to 拢45m with the firm鈥檚 pre-tax loss widening from 拢739,000 to 拢2.8m.

Based in Hertfordshire, JRL was founded in 1996 as a specialist groundwork and concrete frame contractor.

It has since grown to include a civils business, drylining arm, M&E division, demolition company and tower crane fleet 鈥� drawing comparisons with other self-delivery firms such as Laing O鈥橰ourke.

Midgard is building the Octagon tower, a 49-storey residential block on the Paradise scheme in the middle of Birmingham.

The 拢110m scheme for Singapore firm City Developments Limited has been designed by Glenn Howells Architects with Midgard expected to finish work in 2025.

In its last set of results for the year to December 2020, JRL said turnover slipped to 拢569m from a record 拢622 in 2019. Pre-tax profit fell 23% to 拢26m.

The firm, which claimed 拢3.5m in furlough cash during the year, had just under 1,650 staff during the period.