Harworth Estates has filed a winding-up petition against TopHat due to unpaid debts, putting the volumetric house-builder in a challenging position.
- The winding-up petition was filed on 2nd August and is scheduled for a court hearing on 13th August in Leeds.
- TopHat’s financial difficulties are highlighted with substantial pre-tax losses across its divisions in recent accounts.
- Plans to increase production by opening a new factory have been put on hold, contributing to their financial issues.
- Despite significant investment from notable shareholders, including public funding, TopHat’s financial challenges continue.
Harworth Estates, based in Rotherham, has initiated a winding-up petition against the house-builder TopHat due to unresolved debts. This legal action adds pressure on TopHat, a company known for prefabricated housing solutions. The petition was lodged on 2nd August and is slated for review in the High Court of Justice in Leeds on 13th August.
Recent financial records for TopHat Communities Ltd, the deployment arm of the business, reported a pre-tax loss of £5.1 million on a turnover of £13.4 million for the fiscal year ending 31st October 2022. This division handles the delivery and installation of modular homes, while manufacturing is conducted by TopHat Industries Ltd, which faced even greater fiscal losses, exceeding £20 million on sales just under £10 million.
TopHat had intended to bolster its production capabilities with a new factory at Magna Park, Corby. The aim was to elevate production from the current capacity of 800 units per year at Dove Valley Park, Derby, to 4,800 units. Unfortunately, these plans have been stalled, which was hoped to steer the company towards profitability.
TopHat’s shareholder lineup includes influential entities such as Goldman Sachs, Persimmon, and Aviva Capital Partners. Moreover, the company has benefitted from government support, with Homes England extending a loan of £15 million last November. This investment was intended to significantly enhance TopHat’s capacity to produce modular homes, thereby invigorating the Modern Methods of Construction (MMC) sector in the UK and creating an estimated 1,000 jobs.
Homes England’s chief executive, Peter Denton, previously justified the financial support, indicating that by quadrupling the number of homes produced annually, TopHat could make a substantial impact on the UK’s homebuilding sector. Nevertheless, TopHat’s fiscal difficulties persist, casting doubt on Denton’s optimistic outlook.
TopHat’s current predicament underscores the challenges facing the prefabricated housing sector, despite significant investments and ambitious plans.
