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The principal development subsidiary of Goldman Sachs-owned modular housebuilder TopHat fell to a pre-tax loss of over 拢5m in the 2022 calendar year despite nearly doubling revenue.

Accounts published for TopHat Communities Ltd show the business fell to a pre-tax loss of 拢5.1m, following a profit of 拢7.8m last year, despite turnover increasing by 89% to 拢13.4m.

The results come after a period of extreme turmoil in the market for volumetric housing developers, with the last 18 months having seen the closure of many of the most high-profile new ventures in the sector, including the Urban Splash-Sekisui joint venture, L&G Modular, and most recently Ilke Homes.

However, the TopHat Communities鈥� accounts statement said it was satisfied with a 鈥渟trong鈥� financial performance, with the firm producing a gross profit 鈥渋n line with accounting policies鈥�. The firm also pointed out that the previous year鈥檚 profit had been as the result of the reversal of a previous provision for losses on contracts.

The publication of results comes after the business having in April raised a further 拢70m from investors including its existing owner Goldman Sachs, plus listed housebuilder Persimmon and institutional investor Aviva. Goldman Sachs had already put 拢75m into the firm in 2019 and is still the ultimate controlling party of the business.

TopHat Communities, which oversees development, is one of two principal subsidiaries in the TopHat Group, with sister firm TopHat Industries Ltd controlling the modular factory itself. The accounts are only consolidated in a parent company, TopHat Enterprises Ltd, which is registered in Jersey, and therefore for which accounts are not visible.

TopHat Communities confirmed in the accounts that it had committed last year to building a second factory in Corby, further to its existing facility in Derby, which will increase its production capacity from 800 homes per year to 4,500 when it opens in 2024.

Its accounts said the 2022 calendar year was 鈥渁 strong year for TopHat鈥�, with production doubling 鈥渄espite global supply challenges on key materials鈥�. It added that the development of the 650,000 sq ft second factory, which will be equipped with the 鈥渓atest robotics鈥�, was proceeding according to plan, and that production at the existing facility is expected to increase again this current year 鈥渘otwithstanding market headwinds鈥�.

The firm said it was developing and diversifying its pipeline of orders, 鈥渢hrough increasing the number of framework agreements it has in place鈥�, but didn鈥檛 put a number on confirmed orders.

A TopHat spokesperson said: 鈥淔Y22 was another important year for TopHat, during which we doubled output at our manufacturing facility in Derby and began work on Europe鈥檚 largest modular housing factory which will enable us to deliver over 4,000 of the beautiful, green, precision engineered homes the country so badly needs.

鈥淣ot only will this be Europe鈥檚 largest fully modular homes manufacturing facility, but also TopHat鈥檚 proprietary technology and state-of-the-art robotics will make it the most advanced.

鈥淭he current financial year has started with further important milestones being achieved as we continue to build the business and invest in future growth and innovation.鈥�