Losses mount at L&G modular business

Legal & General’s failed foray into modular housing is set to cost it close to £280m, according to accounts filed at Companies House. L&G has been winding down the business since mid-2023 when it made the decision to close its 550,000 sq ft modular factory in Selby, North Yorkshire. The closure came as the pension fund giant labelled the project “unviable”. It said a number of factors, including long planning delays and the impact of Covid-19, had meant the business had not been able to secure the necessary scale of pipeline to make its current model work.  Losses at Legal & General Homes Modular totalled £44.3m in the year ended 31 December, down from £93.9m a year earlier. Administrative expenses and impairments pushed the business’s operating loss to £59.9m, compared with £119m in 2022. Revenue totalled £12.4m, during the period, down from £39.9m in 2022. The accounts state: “Following the decision made in 2023 to cease production and reduce business operations, the principal activity has been to close the factory, complete existing housing developments and wind down the business once all these activities are complete. “During the year the company reached practical completion at its sites in Broadstairs and Selby. It is continuing its activities to deliver high-quality modular housing at its final live site in Bristol. This period, the company handed over 138 new homes across all three sites.” The accounts also reveal that L&G injected £39.5m into the business last year “to execute its strategy”. L&G had hoped to manufacture thousands of homes through its modular business.