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L&G modular losses top £100m since creation
Modular house builder Legal & General Modular Homes recorded more than £30m in losses in the year to December 2019, meaning the organisation has racked up more than £100m in losses since it was established in 2016.
L&G Homes Modular Limited’s annual accounts said losses reached £30.6m last year, an increase on 2018 when the group recorded £20.7m in losses. L&G also posted losses of £46.1m and £9.2m in 2017 and 2016 respectively.
Despite the results L&G said: “The company will have sufficient funds, through from its parent company, Legal & General Capital Investments Limited (LGCIL), to meet its liabilities as they fall due” for the next year.
It added: “After making enquires, the directors have received confirmation that LGCIL intends to support the company for at least 12 months from the date of signing the financial statements.”
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L&G’s modular factory in Leeds originally intended to build homes using cross-laminated timber technology but announced last year that it would move to a new product based on concrete and steel frame.
The company was forced to close down its Yorkshire-based factory earlier in the year due to the COVID-19 pandemic but did not utilise the government’s furlough scheme for any of its 250 staff.
The results continue a trending of sluggish financial results for modular developers with fellow modular group Ilke Homes posting a £22m loss last year.
In a review of its accounts, L&G said: “The company continued to make significant progress as a trading entity during 2019, building a strong sales pipeline, advancing our product development programmes and enhancing the factory.
“During the year, our first modular homes were occupied by customers of Silva Homes. The year culminated in the purchase of land and the submission of a planning application for our next housing scheme in Selby, Yorkshire.”
L&G Modular Homes has been contacted for a response.
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