Business said it has begun 鈥榦rderly wind down鈥� after pulling plug two months ago
TopHat鈥檚 losses from its factory operations more than doubled in its penultimate year of trading, accounts published last week show.
The volumetric housebuilder, which also confirmed it ceased trading in November, has revealed the extent of its losses in the year to 31 October 2023.
TopHat Industries, responsible for running the firm鈥檚 factory operations, revealed a loss of 拢46.3m. This is up from 拢20.4m the previous year and follows losses of 拢18m and 拢21.3m in the preceding years.
The accounts said TopHat 鈥渢raded at low levels鈥� throughout the year.
It said: 鈥淭his was a result of several factors, including a sluggish market for modular housing, the continuing energy crisis, heightened interest rates, rising raw material costs and limited consumer demand.鈥�
The company admitted that the modular sector has 鈥渟truggled with limited adoption and competition from traditional housebuilders鈥�.
It said: 鈥淭he commercial viability of the modular housing model, particularly at scale, has remained weak.
鈥淭he challenges facing the volumetric modular housing sector have been significant, with necessary volumes to sustain business not achieved by TopHat or the competitor base generally.鈥�
The firm鈥檚 sister company, TopHat Communities, which runs its development operations, said its pre-tax loss had increased from 拢5.1m to 拢28.9m.
TopHat, which has been backed by US investment bank Goldman Sachs, said it took the decision to begin winding down the company last year, and it ceased trading at the end of November.
In November 2023, Homes England to help it in its aim of ramping up production to 4,000 homes a year.
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