Monday, August 5, 2019

Britain's L&G’s Modular Home Business Financial Growing Pains

The latest reports from L&G Modular Homes show the business reported an operating loss of $26 M last year. However, the loss was less than the $58 M reported in 2017.

Parent company L&G invested $28 M into the Legal & General Modular Homes venture during the year. L&G has injected more than $110 M in to the business since it was established in 2015.

L&G is proposing to build 3000 homes a year using robotic and labor construction methods to accomplish their goals.

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 of modular homes to housing association Silva Homes in December last year. It constructed eight new homes at a development in Berkshire.

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.”

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