Yorkshire modular housebuilder Ilke Homes has stopped production at its Knaresborough factory and is looking for a buyer.
The company said it was “exploring the sale of the business as volatile macroeconomic conditions and issues with the planning system complicate fundraising and home delivery”.
He added: “The company and its advisers have been exploring fundraising options and existing backers are hopeful of securing a future for the business through a sale or investment.”
Founded five years ago, Ilke Homes is owned by TDR Capital, Sun Capital and Fortress Investment Group. The company posted a pre-tax loss of £34m on turnover of £12.7m in its latest accounts, for the year to 31 March 2021. However, it does has an order book of £1 billion and a pipeline of 4,200 homes.
Ilke is more than two months late in presenting its latest accounts, because the auditors want more funding on its balance sheet. The company employs around 1,000 people.
Its struggles follow the closure of L&G Modular Homes earlier this year. The company had posted six consecutive years of losses since its launch, with its latest loss of £36.9m in the year to 31 December 2021. In September 2021, L&G said that the his modular arm would need several years of initial investment before being profitable. .
Urban Splash’s modular spin-off also entered administration in May 2022, citing operational problems at its Alfreton factory, and Caledonian Modular collapsed last March, before being bought by JRL a weeks later
In April this year, modular home builder TopHat secured a £70m investment from new and existing shareholders, including £25m from Persimmon, to continue operating.
Meanwhile, US modular giant Volumetric Building Companies (VBC) has also announced plans to open a factory in the UK as part of its expansion into the European market.
VBC said it would target the affordable housing, affordable housing, student accommodation and hotel sectors in the UK as it seeks to become a $1bn player in the field of modular construction.
