Losses grow at TopHat as turnover tails off

Goldman Sachs-backed modular housing developer TopHat has posted a widening pre-tax loss and a decline in turnover at its factory operations. The loss before tax at TopHat Industries grew by 4.6% year-on-year to £20.4m during the year ended 30 October 2022, according to its latest accounts filed with Companies House. TopHat Industries said the increased loss was a result of continued investment in future growth. It added that its investment was “a key strategic initiative to deliver the future business plan” and that its 2022 financial period was a “strong year” for the business. The housebuilder said while the group is not yet profitable or cash-generative, it expects that its second factory, to open in Corby, Northamptonshire, will enable it to “deliver strong profitability and cash flow within the next three years”. The news comes as sister company TopHat Communities, which oversees development, swung to a £5.1m pre-tax loss in 2022 after generating £7.8m profit the previous year. However, its turnover increased from £7.1m to £13.4m. TopHat Communities said it will continue to “develop and diversify its pipeline”. During the financial year, TopHat’s chief financial officer, Paul Buddin, resigned from his role. He exited in October 2022 after just over a year in the role. Buddin was replaced by David Brown earlier this year. TopHat’s update comes at a tumultuous time for modular housebuilders, underscored by the collapse of ilke Homes and the closure of L&G Modular Homes’ factory in Selby, North Yorkshire. In April, TopHat raised £70m from investors to fund the development and fit-out of its Corby factory. Investors included Persimmon, which invested £25m as part of the funding round, Aviva Capital Partners and existing backer Goldman Sachs Asset Management. To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews Photo © TopHat