Derby-based modular house builder TopHat is planning to make redundancies to cut costs.

Around 70 jobs are at risk, according to reports in the Construction Enquirer, with consultation now underway.

Investors have injected £200m of funding into the business since it began trading in 2016.

The news comes after the company’s results for the year to October 31 2022 indicated a widening of pre-tax losses (to £20.4m from £19.4m) and reduction in turnover (to £10.2m from £12.3m).

TopHat told the Construction Enquirer: “TopHat is consulting with employees as part of a programme to reduce the costs of the business in response to the prevailing challenging market.

“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.”

In November 2023, the volumetric modular house builder agreed a £15m debt facility with Homes England. This followed news that TopHat had raised £70m from existing and new shareholders including listed housebuilder Persimmon and institutional investor Aviva Capital Partners.