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Mon July 22 2024

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Ilke Homes halts production and seeks buyer

12 Jun 23 Ilke Homes, the Yorkshire-based modular house builder, has suspended production and is seeking a buyer.

Ilke's factory in Knaresborough
Ilke's factory in Knaresborough

The crisis at Ilke Homes raises further questions about the viability of mass-market offsite house-building.

Last month Legal & General pulled out of the prefabricated house-building sector, having spent millions on its factory in Sherburn in Elmet. In April TopHat managed to secure £70m investment, including £25m from Persimmon, to keep going.

Ilke Homes said that it was now “exploring a sale of the business as volatile macro-economic conditions and issues with the planning system complicate fundraising and housing delivery”.

It added: “The company and its advisers have been exploring fundraising options and the existing backers are hopeful of securing a future for the business via a sale or investment.”

Pending the review, operations have been "paused" at its 250,000 sq ft factory in Knaresborough, North Yorkshire.

Ilke Homes, owned by TDR Capital, Sun Capital and Fortress Investment Group, was established five years ago. It’s latest accounts show a loss of £34m before tax in the year to 31st March 2021 on turnover of £12.7m. Over its first three years of operations Ilke Homes generated less than £24m in turnover and lost, in aggregate, £88.7m before tax.

However, it claims a £1bn order book and a 4,200-home pipeline.

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