Specialist Elements Europe has just posted latest results showing a £5.7m pre-tax loss for the year to December 31 2022 on a turnover of £21.9m.
Fellow pod maker Off Site Solutions made a pre-tax loss of £2.1m from a turnover of £27.7m for the year to December 31 2022.
One industry expert said: “Times are fairly brutal in the bathroom pod market at the moment but all the big residential players know it is the only way forward for projects because there simply isn’t enough labour out there to build housing the traditional way.”
Another major firm in the bathroom pod market -Walker Modular – is managing to make money with a £960,000 pre-tax profit from a turnover of £45.7m for the year to March 31 2022.
Shane Walker, the founder of Walker Modular, said: “Choosing Walker Modular is not just about construction costs at the start of the project – it’s about securing a reliable and cost-effective supply chain for the entire lifespan of your building, ensuring long-term success and cost efficiency.”
Elements Europe said: “Elements Europe is actively addressing the challenges we faced in our 2022 performance and implementing strategies to enhance financial sustainability.
“Our commitment to transparency, responsible financial management, and our dedication to delivering high-quality construction solutions to our clients remain unwavering.
“Throughout 2022 and into 2023 we continued to underpin the business with substantial strategic pipeline opportunities, securing several bathroom pod orders and two significant hybrid modular
projects where we are acting as both manufacturer and main contractor.
“These projects are a £38m 23-storey hotel / office development in London and a £130m 550 unit build-to-rent development in Birmingham. Manufacturing output from our factory continues to increase to meet demand.
“Elements Europe appreciates the continued support of our stakeholders, in particular our majority shareholder GS E&C, a South Korean conglomerate with an annual group turnover in excess of $7billion. We are focused on achieving stronger financial stability while continuing to provide innovative and sustainable modular construction solutions.”
James Stephens, Managing Director of Offsite Solutions said, “I am pleased to report that in the nine-month period to the end of September 2023, we had already exceeded our turnover for the whole of 2022. We expect 2023 to be one of our best years for financial performance in our 19-year history.
“Our strong order pipeline and high level of repeat business mean that we are also on track to reach our sales target of £40m in 2024 with record profit levels.
“In order to meet the growing demand for our pods, we have a major transformation programme underway in our factories which will increase our manufacturing capacity by 50 per cent to 15,000 pods per year.
“The new production methodology will optimise workflows and productivity to help our clients address the construction skills shortages that are such a serious challenge for developers and contractors.”
