But firm warns City that revenue from other housing businesses including Cala Homes has stopped
Insurance giant Legal & General has reopened its modular housing factory near Leeds little more than a week after revealing it had temporarily closed due to the coronavirus outbreak.
But the firm said construction work at all of its other housing businesses – which include £1.2bn turnover Edinburgh-based housebuilder Cala Homes, as well as its affordable, later living and build to rent specialist businesses – had been put on hold and that revenue had “stopped”.
The admission came in a first quarter update to the City in which it said it was planning to raise money in order to take advantage of new business opportunities in the current environment.
L&G said operating profit at its investment business LGC, in which all its housing activities are held, will be down year on year.
The firm said: “LGC paused traditional construction operations and will restart as and when it is safe to do so.” It added: “Revenue from house building has stopped since March.”
Last week, Persimmon, Taylor Wimpey and Vistry all said they had drawn up plans to reopen sites which had been shut days after the prime minister put the country into lockdown five weeks ago.
Yesterday Redrow became the latest housebuilder to announce it was remobilising sites.