Scottish timber-based modular housing manufacturer Connect Modular has entered administration just over a year after doubling its turnover.
Connect Modular Ltd, based at a 120,000ft2 manufacturing site in Cumnock, East Ayrshire went into administration on January 6, according to a filing posted at Companies House.
FRP Advisory are believed to be acting as administrators and reports have emerged of some staff being laid off.
Connect Modular, part of The Wee House Group, completed its biggest development in July 2024 – a 101-home development for Cunninghame Housing Association some 18 weeks ahead of schedule. The ground-breaking £17million project in Shortlees, Kilmarnock was delivered with the support of East Ayrshire Council and funding from The Scottish Government.
Connect Modular houses are constructed in modules inside its manufacturing facility in Cumnock, where they are fitted out with kitchens, bathrooms, plumbing and electrics before being delivered to site.
Connect Modular lists Velocity Modular Ltd as its parent company.
Velocity Modular Ltd posted a group turnover of £11.8m in the year ended June 30, 2023 (2022: £6.6m), reflecting a 79% increase. It recorded a group pre-tax loss of £73,000 in the financial year (2022: £18,000 pre-tax loss).
Connect Modular director Jennifer Higgins set up the firm in 2013 with her father Ian Hope. Mrs Higgins is listed as having a 100% shareholding in the parent company, with Connect Modular and Velocity having the same registered office address.
In Velocity’s most recent annual accounts for the year ended June 30, 2023, Mrs Higgins gave an overview of the company’s performance.
“The growth in turnover in one year demonstrates the significant growth that the director and her team have worked so hard to achieve. “Given the significant inflationary pressures over the past few years, planning delays from the pandemic, and the level of investment in both staff and the business premises, there has been an impact on profit levels.
“However, the significant level of investment in staff and premises has not only allowed us to significantly increase the capacity in our factory, but it has allowed the business to convert a large pipeline of projects into the construction phase.”
The Group acquired Hope Homes (Scotland) Ltd in November 2022. Group modular capacity was stated as 215 homes annually.
“Successful completion of projects on time, on budget and with minimal snagging has secure the business a significant pipeline of work and influx of interest in future projects.”
Connect Modular specialises in the provision of affordable modular homes for housing associations, local authorities and community trusts. Under most contracts, Connect Modular takes on the principal contractor role, managing all aspects of the project from design and statutory consents to manufacture of housing and construction of ground and site works.
The company was recently recognised at the recent Chartered Institute of Housing, Scotland Housing Awards 2024.
