Modular firm TopHat plans job cuts amid ‘challenging’ market

It comes as the modular firm is due to open a major new 650,000 sqft factory in Corby, Northamptonshire.

TopHat has previously said the facility would create 1,000 jobs and have capacity to develop 4,000 homes annually.

TopHat explained: “While cost cutting is always tough, these changes will put TopHat in pole position for growth when demand rebounds.” 

The company has clocked up significant losses since its launch in 2016. In its last reported full year to the end of October 2022, TopHat Industries, which produced the group’s modular homes, posted widening pre-tax losses of £20.4m.

At the time of the results, the firm had 212 staff, which cost £7.7m over the year.

TopHat remains among the most high-profile Category 1 modular firm operating following the demise of Ilke Homes and Legal & General Modular Homes.

However, modular builders such as Tide and its sister firm Vision Modular have been recognised after completing a 50-storey residential development in Croydon last year, which is claimed to be the tallest modular building in Europe. 

Carl Leaver, chair of TopHat, told a Lords committee in October that there was “zero chance” of the government’s 300,000 homes a year target being hit without modular housing.  

Other traditional house builders have also announced planned job cuts as the housing market remains tough amid the wider uncertain economic climate. Vistry, Bellway and Persimmon have all signalled they were reducing their size of their workforce in the past year.

Persimmon is an investor in TopHat, having taken an undisclosed stake in the firm last year for £25m.