Modular builder TopHat has posted a £5.1m pre-tax loss for the year ending October 2022.
The Goldman Sachs-backed firm swung to a loss after reporting a £7.8m profit in its previous financial year, although its turnover grew from £7.1m to £13.4m.
In a strategic report accompanying the results, Top Hat said it is “not yet profitable or cash generative” due to its “investment in future growth and innovation”.
The business operates from a factory near Derby, with capacity to produce 800 homes per year.
In June 2022 it announced it will open a second factory in Corby in 2024 – which it claims will be Europe’s largest modular homes facility. The new site will bring together the latest robotics and TopHat’s proprietary technology to manufacture and distribute up to 4,000 homes per year.
TopHat said the delivery of a second factory will enable the company “to deliver strong profitability and cashflow within the next three years”.
It said the firm doubled its production capacity in the year, despite “global supply challenges on key materials in the early part of the financial year”.
The company added: “The two combined factories will increase TopHat’s capacity to over 4,500 homes per year, which is underpinned by a very strong existing demand pipeline.”
TopHat is a “young, ambitious company” which is “still in its growth phase”. The average number of employees during the year was 18, a rise from seven in 2021.
The group continues to invest ahead of revenue, both in growing its capacity and developing products. Shareholders include Goldman Sachs, and more than £150m (£200m including accrued interest) of private sector funds had been invested up to the balance sheet date. Investors include Persimmon and Aviva Capital.