Tuesday, April 28, 2020

England’s L&G Re-opens Modular Housing Factory

However insurance giant warns city that revenue from its other housing businesses has “stopped” since March

Insurance giant Legal & General has re-opened its cutting-edge modular housing factory little more than a week after revealing it had temporarily closed it due to the coronavirus outbreak.

However, the firm said that construction work at all of its other housing businesses – which include £1.2bn turnover housebuilder Cala Homes, as well as affordable, later living and build to rent specialist businesses – had been put on hold, and that revenue had “stopped”.

The admission came within 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”, and that “Revenue from house building has stopped since March.”

However, it added: “we have recently reopened our Modular Homes business with procedures to ensure the safety of our employees.”

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