Mon, 13 Jan 2025 | ADMINISTRATION
Eco-friendly modular housing companies Connect Modular and Hope South West, have collapsed into administration.
The companies, both part of Cumnock, Scotland-based The Wee House Company, appointed FRP Advisory as administrators in early January according to a filing to Companies House.
A statement from FRP said: “Michelle Elliot and Callum Carmichael, partners with specialist business advisory firm FRP Advisory, have been appointed as joint administrators of Connect Modular Limited on January 6. They have also been appointed as joint provisional liquidators to related company, Hope South West Limited, on January 7. The companies were both part of The Wee House Group, a leading provider of high quality, sustainable, affordable, modular homes to housing associations, local authorities and community trusts across the UK.”
According to FRP the companies have suffered significant financial challenges in recent months due to rising operational costs and losses made on previous contracts, which has placed significant pressure on trading operations and cash flow.
FRP said all 38 employees at Connect Modular are being made redundant with 10 members of staff at Hope South West also losing their jobs.
In its most recent accounts for the year to 30 June 2023 Connect Modular had current assets of £2.28 million and creditor amounts falling due after more than one year of just over £3 million.
For the same period Hope South West had current assets of £2.3 million and credit amounts falling due after more than one year of £1.82 million.
Elliot said: “Connect Modular Limited and Hope South West Limited had built a strong reputation and track record in delivering high quality, affordable modular homes across Scotland. Unfortunately, following losses made on a number of historic contracts and rising operational costs, the businesses were facing significant cash flow pressure. Despite the best efforts of the director in exploring alternatives in recent weeks, the cash position deteriorated significantly placing unsustainable pressure on the business.”
Elliot said FRP would now focus on marketing the assets for sale.
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