Modular Constructor ilke Homes Administration Forces Supplier Debt Statement

FOLLOWING THE NEWS on 20 June that ilke Homes has entered into administration, one of its suppliers has revealed it is owed £2 million.

ilke Homes is a modular home builder previously pointed to as a flagship exemplar of modern methods of construction by the government. It had a 4,200 home pipeline reported this year, mostly made up of affordable homes.

ilke Homes is a customer of civil engineers, Nexus’ Tamdown division on two developments, which have both been paused by ilke Homes. ilke owes Tamdown approximately £835k with £962k becoming due shortly and £250k for work completed in June prior ilke Homes appointing a liquidator.

Tamdown had also been anticipating additional turnover amounting to approximately £4m over the remainder of the current financial year FY23. The company says “there is a risk that Tamdown will be unable to collect these amounts, which would have a significant impact on [Nexus] Group profit”.

By entering administration, ilke Homes now has a period of up to eight weeks when it is protected from claims by its creditors. It is understood to be seeking buyers while its factory and site operations are paused.

Operating Losses

Headquartered in Yorkshire, ilke Homes, established in 2017, quickly expanded to lodge accounts showing 199 homes built in 2021 with turnover of £57m in 2020 and £64m in 2021 but also operating losses of £31m in 2020 and £32m in 2021. ilke Homes benefited from £10m from Places for People and £30m from Homes for England.

In the company’s 2021 director’s report it states, “The company faces operational risk as it balances the continued expansion of its production capacity with the development of its sales pipeline. Misalignments in this phase can result in temporary increases in anticipated liquidity needs.”

In November 2022, ilke Homes reported that it had raised £100m in a new equity investment from Fortress Investment Group, with its existing investors, TDR Capital and Sun Capital, joining in the fundraising. The company said it intended to use the additional funds to expand its capacity to building 4,000 homes a year and to double its workforce to 1,000.

The company reported that it had nine live sites and one with consent secured.

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