In its penultimate year of trading. Modular house-builder TopHat Industries racked up £46m of operating losses on turnover of less than £11m.
TopHat ceased to trade at the end of November 2024 and began winding down the business, citing an inability to achieve the necessary volumes to sustain the business.
It has now filed accounts for the year to 31st October 2023 showing a modest increase in turnover to £10.8m (2022: £10.2m) but, due to a £21.6m impairment charge, the operating loss spiralled to £46.1m (2022: £18.6m).
The loss before tax was £46.3m, on top of losses of £20.4m, £18.0m and £21.3m in the three previous years. It never even came close to breaking even. Losses were always two or three times the amount of revenue that was ever generated.
“It is now apparent that commercial viability is not present within the sector at this time,” said founder and chief executive Jordan Rosenhaus, explaining the decision to close the business.
TopHat was set up by Jordan Rosenhaus in 2016 and substantially acquired by US bank Goldman Sachs the following year. UK traditional house-builder Persimmon and insurance company Aviva joined as minority shareholders in 2023, sinking more than £150m into it between them, and the government lent it £15m too, but TopHat never once made a profit.
In March 2024 it scrapped the development of a new factory in Corby that would have increased annual production capacity from 800 to 4,800 units. Six months later, the original factory in Derby closed, most of the staff were let go and factory equipment was sent to auction.
“As at the end of November 2024, TopHat Industries has completed all remaining projects, effectively ceased to trade, and the vast majority of staff have left the business. This decision follows a thorough review of the company’s financial position and current market conditions, which have rendered it unfeasible to continue operations in the short terms,” Rosenhaus says in the 2023 annual report. “The directors are working closely with relevant stakeholders to manage the closure process, including addressing creditor obligations and distributing any remaining assets.”
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