Legal & General (L&G) Modular Homes has issued a financial update ahead of a full wind down.
It follows an announcement in May by the Group that it intended to halt production, reduce business activity alongside completing existing developments, and close its 550,000 sq ft Sherburn factory, ahead of a full wind down of the modular business by June 2025, putting more than 450 jobs at risk.
Not being able to secure the “necessary scale of pipeline” had, in part, been due to planning delays and the impact of the Covid-19 pandemic, L&G said at the time.
Sales for the offsite manufacturer, part of L&G Group, for the year ended 31 December 2022 led to revenue growing to £39.9 million, compared to £12.2 million in FY2021.
However, the company recorded a loss after tax of £93.8 million (FY2021: £29 million loss).
This was due to increased delivery costs at its Bristol, Broadstairs and Selby sites, the decision to cut operations and close the factory, as well as additional overhead costs.
Operating losses were £119.1 million (FY2021: £35.7 million loss).
Cash had fallen from £14.9 million in the previous financial period, to £3.3 million in the new one.
It also posted net liabilities of £1.3 million, compared to net assets in the previous financial period of £40.8 million.
Directors did not recommend payment of a final dividend (FY2021: £Nil).
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