{"id":512618,"date":"2025-01-20T12:45:52","date_gmt":"2025-01-20T12:45:52","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=512618"},"modified":"2025-01-20T13:14:06","modified_gmt":"2025-01-20T13:14:06","slug":"modular-firm-tophat-reveals-50m-loss","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/tech\/offsite-mmc\/modular-firm-tophat-reveals-50m-loss-20-01-2025\/","title":{"rendered":"Modular firm TopHat reveals \u00a350m loss"},"content":{"rendered":"

The extent of losses racked up by modular builder TopHat have been laid bare, after the firm confirmed it ceased trading before Christmas.<\/span><\/p>\n

The Derby-based company published two sets of accounts last Thursday (16 January), showing that it plunged \u00a353.8m into the red in the year to 31 October 2023.<\/span><\/p>\n

TopHat Corporate posted a \u00a37.5m pre-tax loss during the period, up from a \u00a35.1m deficit in the year before.<\/span><\/p>\n

The firm reported no income at all for the year to October 2023, with all of its costs stated as administrative expenses and interest.<\/span><\/p>\n

Meanwhile, TopHat Industries plummeted to a \u00a346.3m loss before tax in the latest period after being \u00a320.4m in the red during the previous spell.<\/span><\/p>\n

This business turned over \u00a310.9m in the year to October 2023.\u00a0<\/span><\/p>\n

Its administrative expenses totalled more than \u00a338m. These included \u00a318.3m of \u2018exceptional\u2019 expenditure due to TopHat\u2019s decision to abort plans for a 60,000 square metre manufacturing plant in Corby.<\/span><\/p>\n

Another subsidiary, TopHat Communities Ltd, is due to release its accounts on the Companies House website by next Monday (27 January).<\/span><\/p>\n

In both of the latest reports, company directors confirmed that the TopHat group ceased trading at the end of November 2024.<\/span><\/p>\n

However, Companies House shows that the holding company, TopHat UK Holdings Limited, and all subsidiaries remain officially active.<\/span><\/p>\n

\u201cThroughout the year, TopHat traded at low levels,\u201d the latest TopHat Corporate and TopHat Industries accounts said. \u201cThis 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.<\/span><\/p>\n

\u201cMarket conditions worsened as the year progressed, with a number of businesses in the modular housing sector ceasing to trade and entering into insolvency owing to similar pressures.\u201d<\/span><\/p>\n

Directors said in the TopHat Industries report that they had \u201cencountered difficulties in securing additional funding to support the company\u2019s operations and expansion plans\u201d.<\/span><\/p>\n

\u201cOwing to the significant trading difficulties within the group, and the uncertainty this has caused for employees, there has been a significant level of staff attrition,\u201d they added.<\/span><\/p>\n

This led to a formal redundancy process in September and October 2024, according to the statement, and \u201cthe vast majority of staff across the group being made redundant\u201d at the end of that period.<\/span><\/p>\n

The report confirmed that TopHat completed an auction process to dispose of factory equipment. <\/span>Construction News<\/span><\/i> reported in November<\/span><\/a> that machinery and equipment owned by a \u201cmajor modular building manufacturer\u201d had been offered by asset-disposal specialist BPI.<\/span><\/p>\n

TopHat Industries\u2019 average headcount grew from 212 in the year to October 2022 to 236 in the latest period. Its annual wage costs soared from \u00a36.9m to \u00a37.8m.<\/span><\/p>\n

However, employee numbers fell from 24 to 15 over the same timeframe at TopHat Corporate, with the firm\u2019s annual wage bill dropping from \u00a32.6m to \u00a32.2m.<\/span><\/p>\n

In February 2024, TopHat<\/span> launched a consultation over 70 potential job cuts<\/span><\/a>, then the following month the company<\/span> revealed it had paused plans<\/span><\/a> for a South Midlands factory, citing \u201cmarket conditions\u201d.<\/span><\/p>\n

Auditor BDO stated no opinion on the financial statements in the latest accounts published by both TopHat Industries and TopHat Corporate. \u201cWe have not been able to obtain sufficient appropriate evidence to provide a basis for an audit opinion,\u201d it said.<\/span><\/p>\n

TopHat said auditors had requested information that would delay publication of the accounts by up to four months.<\/span><\/p>\n

\u201cHaving taken professional advice, the directors have concluded that it is in the best interests of stakeholders in the company, especially the company\u2019s creditors, that the approval of the financial statements and filing of the accounts is not delayed,\u201d said the TopHat Corporate and TopHat Industries accounts.<\/span><\/p>\n

In October, TopHat <\/span>announced<\/span><\/a> it was going to lay off staff and wind down its operations, amid a torrid time for many modular specialists.<\/span><\/p>\n

ModPods International<\/span> appointed administrators last summer<\/span><\/a>, for instance, after spiralling relocation costs hit its bottom line.<\/span><\/p>\n

Investor L&G also <\/span>wound down its offsite business<\/span><\/a> in 2023 after years of heavy losses.<\/span><\/p>\n

Modular specialist <\/span>Urban Splash House entered administration<\/span><\/a> in May 2022, blaming operating issues at its factory in Alfreton.<\/span><\/p>\n

Other specialists including <\/span>Ilke Homes<\/span><\/a>, <\/span>Mid Group<\/span><\/a>, <\/span>Eco Modular Buildings<\/span><\/a> and <\/span>Caledonian Modular<\/span><\/a> have also failed in recent years.<\/span><\/p>\n

In addition, Scottish affordable housing specialist Connect Modular<\/span> appointed administrators this month<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The extent of losses racked up by modular builder TopHat have been laid bare, after the firm confirmed it ceased trading before Christmas. The Derby-based company published two sets of accounts last Thursday (16 January), showing that it plunged \u00a353.8m into the red in the year to 31 October 2023. TopHat Corporate posted a \u00a37.5m …<\/p>\n","protected":false},"author":87938,"featured_media":495209,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[554,552,39315],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n