JRL Group buys troubled modular specialist, saving 200 jobs

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Hinkley Point C Oct 2017 9512

Collapsed specializer contractor Caledonian Modular has been sold to JRL Group, redeeming much than 200 jobs.

Administrators Alvarez & Marsal negotiated the merchantability of the modular firm, which went nether past month. The steadfast had a fig of nationalist contracts anterior to its collapse, including deals to physique 2 schools nether a Department for Education (DfE) framework.

Caledonian Modular's latest accounts amusement that it incurred a £2.8m pre-tax nonaccomplishment successful the 12 months to 31 March 2020, pursuing a shortage of £739,000 successful the erstwhile year.

Alvarez & Marsal managing manager Mike Denny said: “The duplicate challenges of the pandemic and rising ostentation person placed strain connected equilibrium sheets for businesses crossed the UK, including those successful the operation sector.

“We are delighted to person secured a merchantability of the concern to JRL Group, rescuing the UK’s largest modular operation specialist. We privation the concern and its caller owners each occurrence for the future.”

Caledonian Modular entered into medication connected 10 March. The Midlands-based offsite-manufacturing specializer posted a turnover of £45.3m successful its astir caller published accounts. The institution was registered to an Edinburgh code but worked from a caput bureau successful Newark, Nottinghamshire.

Despite the losses, Caledonian’s directors had been assured of a stronger show successful the adjacent future. In February 2019, the steadfast secured a £38m declaration to present 2 schools, Haygrove School and The Sir Frederick Gibberd College, done the DfE framework.

In 2017, the steadfast besides supplied modular units to Laing O'Rourke astatine Hinkley Point C. Other notable sectors the institution operated successful see pupil accommodation, residential and healthcare.

The latest full-year results stated that Caledonian had “a tenable anticipation that the radical and institution person capable resources to proceed trading for the foreseeable future, and that the radical volition instrumentality to profitability”.

The institution was backed by MAK Capital. The latest accounts noted that the US steadfast was Caledonian’s main shareholder.