Administrators have been called into Hull off-site construction firm M-Ar, an award-winning business where successive years of stratospheric growth have previously played out.
Officers of Begbies Traynor will look to salvage a future for the module specialist, which had recently expanded into a huge facility on Freightliner Road. Three practitioners have been appointed.
Module-Ar, as it is registered, is understood to have employed 85 at its peak, with a last recorded turnover of virtually £30 million. It has yet to file accounts for the most recent financial year, but added £10 million to its revenues in the 12 months to April 2022. The 49 per cent growth came on the back of a tripling from £6.2 million. Lower margins had set in, however, with the company - owned by Rob and Amanda Grimbleby - generating £639,870 profit, down from its £783,000 return in 2021.
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Late last year it completed the £3 million purchase of its sprawling 100,000 sq ft facility, which had given it the capacity to produce 400 units a year.
The 16-year-old business had moved from Melton in late 2020, initially leasing the former Actavo base where it also invested £2 million in plant equipment. It had set out to double its turnover in the next three years, and while it warned of a squeeze due to higher material and labour costs, directors had outlined how “an increasing amount of government backed or funded developments are playing a very significant role in helping industry weather the exceptional economic pandemic and make an impact on future building methodology”.
Off-site construction is seen as bringing a host of benefits, with lean production line processes and less disruption on sites. It is closely aligned to the strong caravan and holiday lodge sector that is concentrated in East Yorkshire.
Order book growth had been reported late last year, as the award-winning business flagged itself as an employer of choice. This summer it completed a 64-unit retirement village in Doncaster for Housing 21. It had also delivered for homelessness charity Centrepoint in London.
Paul Stanley, Dean Watson and Rikki Burton have been appointed, and Begbies Traynor has been contacted for comment on the reasons for the administration. Attempts to contact M-Ar directly have also been made.
In its last filing M-Ar had warned of the impact of programme delays and commodity price changes could have, as well as wider political and regulatory changes and production operation failures.
