Ilke Homes, which entered administration last year, received over £30million in government funding from Homes England in the hope that its modular techniques could solve the housing shortage.

Yet the Health and Safety Executive in 2023 began a prosecution against the Knaresborough-based company after it had collapsed, and charges were laid at York Crown Court.

They alleged that the firm failed to ensure that lifting operations to transport floor cassettes across the factory via overhead travelling crane were properly planned, appropriately supervised and carried out in a safe manner, exposing an employee named Ben Fisher and others to risk of serious personal injury.

A modular building made by Ilke Homes at Flaxby near Knaresborough has a trial lift onto a lorry at the factory

However, when the case was called before Judge Sean Morris on Wednesday, it was confirmed that no evidence will be offered against Ilke Homes due to the company no longer trading.

However, another company, Nomoco Ltd, trading as Warmco Space Heating, was charged as part of the same prosecution and its director Richard Howard today pleaded guilty to failing to ensure that employees working at height on a mobile elevated platform to install flues were supervised in a safe manner.

The offences date back to 2018. Nomoco Ltd, based at Tockwith in North Yorkshire, will be sentenced in March.

Warmco Space Heating was founded in the 1980s by Mr Howard’s father, Leon. The company was awarded the contract to install energy-efficient heating systems at Ilke’s manufacturing site in Flaxby.

Workers move a roof for a modular home at Ilke Homes, Flaxby near Knaresborough

Ilke Homes was set up in 2018 to pioneer the concept of modular construction – where houses are built in a factory then erected in parts on a site.

It created a ‘pipeline’ of 3,000 properties, working with developers, housing associations and councils.

Around 1,150 staff are believed to have been made redundant by the collapse, and 80 are taking legal action over the way the process was handled.

One of Ilke’s former directors, Nigel Banks, described the collapse of the private equity-owned venture as ‘a plane running out of fuel’ on Linkedin. Around 40 sites are believed to have been completed before the insolvency.

Ilke Homes: Yorkshire construction firm that received £30million in Homes England funding will not face trial for health and safety offences - but heating contractor pleads guilty