Lorne Stewart’s offsite-construction subsidiary is being wound up due to “prolonged losses and difficult market conditions”.
MDSL, which supplied corridor modules, plant skids and prefabricated pipework from a 45,000sq ft factory, has ceased trading and is “no longer a going concern”, Lorne Stewart’s board concluded.
The firm’s latest accounts said: “The inflationary pressures, supply chain constraints and difficulty in attracting and retaining [a] skilled workforce have been a significant headwind throughout the year which impacted the company’s margin and the stability of its supply chain.”
The accounts were prepared on a “break-up basis”, reflecting the “intention to realise assets and settle liabilities in the normal course of winding-up the business”, the company said.
The Telford-based subsidiary saw its turnover slump by 68 per cent to £427,000 in the year to the end of December 2024, resulting in an operating loss of £369,000. This was on top of a £435,000 loss in 2023.
The total “shareholders’ deficit” in the latest year was £8m.
The news came as MDSL’s parent company, LSRM Holdings, part of Lorne Stewart Group, saw its pre-tax loss narrow to £1.9m in 2024. This compared with a loss of £2.8m the previous year.
Turnover in the latest 12-month period fell from £121.6m to £102m.
LSRM pointed to “multiple factors” still affecting the industry, including inflation, the skills shortage, Brexit and supply chain insolvencies.
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James Wilmore