Modular developer consults employees about cost-cutting measures amid “challenging” market conditions.
TopHat has opened a consultation with its staff as it plans to make around 70 redundancies to cut costs.
The modular developer, which posted a £20.4m pre-tax loss for the year to 31 October 2022, has plans to increase its capacity to 4,500 homes. It intends to open a second factory, a 650,000 sq ft facility in Corby Northamption this year to complement its existing factory in Derby.
However, a spokesperson confirmed the developer is now consulting with staff “as part of a programme to reduce the costs of the business in response to the prevailing challenging market.”
He said: The changes are a prudent step to ensure the business maintains current delivery levels during 2024 and is well positioned for growth as the market returns.
“The medium and long-term need for volumetric modular homes is becoming ever clearer as traditional build capacity is constrained by the growing skills shortage. While cost cutting is always tough, these changes will put TopHat in pole position for growth when demand rebounds.”
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The company, which has yet to be profitable, posted turnover of £10.2m for the year to 31 October. This was down on the £12.3m the previous year. Its pre-tax loss increased around 5% from the £19.5m posted the previous year.
It had an average of 212 employees in the year.
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