L&G’s modular housebuilding arm has recorded a £37million pre-tax loss in 2021 despite reporting revenue for the first time. The loss marks its sixth in a row since its inception in 2016.
The latest figure takes the company’s total pre-tax losses to £174million since it was created with the aim of modernising the UK housebuilding industry and building 3,500 homes a year using modern methods of construction.
Despite the losses, L&G Modular improved its balance sheet in the year, increasing its net assets from £35.1million to £40.9million after its parent company injected £34.8million into the business for three additional shares in the company.
The firm had recently been announced as the preferred developer for a major redevelopment in Wolverhampton, just days before the 2021 figures were released. The canalside site will take L&G Modular’s pipeline to more than 1,000 homes.
The statement released with the financial results noted the company’s ‘significant milestone’ of recording its first revenue from three separate sites, adding that it had made ‘strong progress’ by increasing its sales pipeline and growing partnerships. It also acknowledged that significant rises in the price and timber and steel during the year had put added pressure on the cost of producing homes.
The statement continued to say that cost reduction initiatives had been implemented to lessen the impact of the price increases.
Despite the sixth straight recorded loss, Rosie Toogood, chief executive of L&G Modular said that the firm “continues to make significant progress with projects and partners, delivering much-needed affordable, energy-efficient homes at the time of an acute energy crisis.”
She continued to say that L&G Modular was on track to build 450 homes in 2022, and had already surpassed the revenue generated in 2021.
“We have been busy delivering homes on three major sites and are progressing planning applications on more as we grow our pipeline. We are already delivering some of the most energy-efficient homes in the country. Our pipeline continues to grow following our selection as the development partner for the regeneration of the Canalside South by the City of Wolverhampton Council where we will deliver 400 new homes.”
