{"id":532293,"date":"2025-11-07T12:45:49","date_gmt":"2025-11-07T12:45:49","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=532293"},"modified":"2025-11-06T16:02:35","modified_gmt":"2025-11-06T16:02:35","slug":"modular-firm-went-under-after-client-withheld-585000","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/administrations\/modular-firm-went-under-after-client-withheld-585000-07-11-2025\/","title":{"rendered":"Modular firm went under after client withheld \u00a3585,000"},"content":{"rendered":"

Collapsed offsite specialist Kingston Modular Systems was unable to pay its debts after a dissatisfied client withheld \u00a3585,000, according to administrators.<\/p>\n

A report by an administrator from Westgates Restructuring said that the Hull-based company, which went into administration in September<\/a>, experienced a slowdown during 2024 due to delays in securing orders on major projects. That year it cut its headcount by around 30 people, to 70.<\/p>\n

But in July 2025, the firm was hit by a legal letter from a customer who claimed Kingston Modular had breached a contract, the report said.<\/p>\n

The client said it would offset what it claimed were its costs against another project \u2013 and denied that it was due to pay \u00a3585,000.<\/p>\n

Kingston Modular\u2019s directors disputed this, responding via solicitors, but according to the adminstrator were not given an opportunity to resolve any of the snagging or other issues raised.<\/p>\n

\u201cAs a result of this non-payment, the company\u2019s invoice financing facility provider froze the facility.<\/p>\n

\u201cThis caused significant cashflow issues resulting in them no longer being able to pay debts as and when they fell due,\u201d Westgates Restructuring\u2019s Frazer Ulrick wrote in the report.<\/p>\n

The customer and project are not named in the report.<\/p>\n

At its peak in the year to May 2023, the firm employed 100 people, achieved a turnover of \u00a317m and made a pre-tax profit of \u00a377,369.<\/p>\n

In August 2025, Westgates Restructuring helped Kingston Modular\u2019s directors try to sell the business. A joint bid of \u00a380,000 was received from two companies, but the offer was rejected as being too low. No further offer was made and the company filed for administration the following month.<\/p>\n

Formed in 2016, Kingston Modular operated from a factory in Hull and worked in the commercial, education, healthcare and leisure sectors. Its former website said it had also delivered \u201chigh profile government contracts including a four-storey project in central London\u201d.<\/p>\n

In total, 62 employees were made redundant in the summer, with 34 of those in August as the directors tried to sell the business and another 28 when the administrator was appointed.<\/p>\n

They are estimated to be owed a total of \u00a3124,530, which is expected to be recovered through the administration.<\/p>\n

The report did not detail how much was owed to unsecured creditors.<\/p>\n

Ulrick said company directors provided him with a debtor ledger showing that 11 entities owed Kingston Modular \u00a3623,777, including one said to owe \u00a3380,114.<\/p>\n

However, he found one of the debtors had issued a counterclaim worth more than the \u00a3380,114 and the costs of legal action to pursue it would not be worth the risk of pursuing the money.<\/p>\n

Four others totalling \u00a3157,532 were also the subject of disputes, with debt collectors advising that only around 25 per cent of the total could be expected to be recovered, after what would likely be a protracted legal process.<\/p>\n

Another \u00a359,203 was owed by a company, not named in the report, that recently went into liquidation.<\/p>\n

Kingston Modular is the latest in a series of offsite specialists to go out of business in recent years, following companies including Ilke Homes, Modulous, Mid Group, Eco Modular Buildings and Caledonian Modular.<\/p>\n

Antrim-based Jans Offsite Solutions went under in May<\/a>, and Scottish affordable housing specialist Connect Modular appointed administrators in January<\/a>.\u00a0Derby-based TopHat plunged more than \u00a350m into the red in the year to 31 October 2023 and ceased trading before the end of 2024, citing \u201cchallenging\u201d market conditions.<\/a><\/p>\n

Elsewhere, L&G wound down its offsite business in 2023<\/a>\u00a0after years of heavy losses and modular specialist Urban Splash House\u00a0entered administration in May 2022<\/a>, blaming operating issues at its factory in Derbyshire.<\/p>\n","protected":false},"excerpt":{"rendered":"

Collapsed offsite specialist Kingston Modular Systems was unable to pay its debts after a dissatisfied client withheld \u00a3585,000, according to administrators. A report by an administrator from Westgates Restructuring said that the Hull-based company, which went into administration in September, experienced a slowdown during 2024 due to delays in securing orders on major projects. That …<\/p>\n","protected":false},"author":43915,"featured_media":475217,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[554,552,39315],"tags":[],"class_list":["post-532293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-administrations","category-financial","category-offsite-mmc"],"yoast_head":"\nModular firm went under after client withheld \u00a3585,000 | Construction News<\/title>\n<meta name=\"description\" content=\"Collapsed offsite specialist Kingston Modular Systems was unable to pay its debts after a dissatisfied client withheld \u00a3585,000, according to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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