Insurance giant racks up £120m hit on business last year

L&G Modular posted a pre-tax loss of more than £120m last year, the company has said in its latest accounts.

The fresh losses for the firm, which has closed its factory in North Yorkshire and is winding down its operations, comes on top of a combined £174m of losses in the seven years since it was founded.

In May, the insurance giant said it was stopping production at its timber-frame modular housing factory, having promised to build 3,500 homes a year from its plant in Sherburn-in-Elmet, near Selby. It said it was closing the factory because it had “not been able to secure the necessary scale of pipeline” to make the business a success.

L&G modular factory 1

L&G said in May it was shutting its offsite factory in North Yorkshire because not enough work was coming through to make it viable

Its decision was underlined in its 2022 accounts published today, showing that losses last year were “largely the result of increased costs to deliver at each of the existing sites, additional overhead costs incurred in support of business growth objectives and balance sheet impairment impacts following the decision to close the factory and reduce business completions”.

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L&G Modular increased its revenue from £12.2m to £39.9m as it delivered 75 homes to three sites, at Bristol, Broadstairs, Kent and Selby. But it said it will close its remaining sites and commitments on a phased basis by June 2025.