Sunday 4 August 2019 2:42 pm

Losses build at L&G's modular homes business

Legal & General (L&G) suffered a loss of more than £20m in its modular home building division last year.

The latest accounts for L&G Homes Modular show the business reported an operating loss of £20.6m last year. However, the loss was less than the £46.15m reported in 2017.

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Parent company L&G invested £23.2m into the Legal & General Modular Homes venture during the year. L&G has injected more than £90m in to the business since it was established in 2015.

The company aims to build 3000 homes a year using construction methods used in manufacturing industries such as aerospace and automotive. 

Homes will be built off-site at L&G’s factory in Sherburn in Elmet, near Leeds before they are transported and reconstructed on-site. 

The firm delivered its first set ofmodular homes to housing association Silva Homes in December last year. It constructed eight new homes at a development in Berkshire. 

The venture said it plans to expand its pipeline this year. 

“The business has started to develop a portfolio of commercially-viable new products which are targeted across different sectors,” L&G Homes Modular said in its annual results statement. 

“The company has worked with key stakeholders and partners on the new product development programme which will continue at pace during 2019.

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“The company will expand its sales pipeline and order book in 2019, whilst starting to deliver modular homes in increasing volumes to its customers.” 

L&G told The Sunday Times: “In common with many other engineering product-based businesses, our business plans [foresaw] a number of years of upfront investment would be required to develop the products and processes required to enable to business to deliver profitably at scale.”

Main image credit: L&G