Is this the end of the Boklok development in Yapton or just
a serious blip?’
from our Local Reporter, 5 November 2024
Earlier reports have already outlined concerns about the trading
position of Tophat over time. The latter, as the contracted
suppliers of the volumetric modules for Boklok developments in
the UK until Aug. 2025. Including the Yapton development in
prospect.
Less than encouraging updates regarding Tophat, have
appeared in conjunction, in several build publications in recent
weeks, from Oct.20th 2024.
On Oct. 22nd. 2024, The Construction Enquirer webpage also
referred to the ‘winding down’ of volumetric modular
operations for Tophat, as follows: -
‘The Goldman Sachs backed firm blamed dwindling orders for
the decision to open consultation with its workforce at its factory
in Derby. Tophat said the wind-down would see all its factory
orders completed.
Tophat’s accumulated losses have been 87 million since it was
established in 2016.
A company statement said: ‘’In response to the challenging
market over the last several years, Tophat has gradually been
reducing workforce.
Unfortunately, due to the continued reduction in continued
pipeline, Tophat is in the process of making most of its factory
staff redundant, by following a statutory consultation process.
This orderly wind down of the volumetric process will put the
business in a position to consider all future options.’’
Such concerning news would appear to pose a significant dent
in proposed Boklok development plans for Yapton.
There is no indication that the Tophat factory intends to
continue with supply of modules in production, once current
orders are fulfilled. Nor any alternative supplier suggested, in
the wings. It would seem unlikely that any pre-order has been placed with Tophat for the Yapton development, because of this.
If approval was ultimately given for the planning application,
important questions are raised, as to how the development
would be able to be commenced and completed by Bokok in
circumstances of apparent uncertainty.
A recap on earlier reportage from other publications in
association:
In May 2024 the CEO of Tophat resigned. The ‘new’ factory in
Corby, covering 11 football pitches, was put ‘on ice’ indefinitely,
with the ‘team’ laid off. 59 robotics on order for the new factory
remain in Germany. 70 workforce were due to be laid off, out of
approx.200 from the original factory in Derby.
Substantial losses for the company were also reported. Approx.
87 million from over 200 million of investment, since 2016. In
more recent years, losses of allegedly between 20–25 million.
Persimmon, Aviva and Homes England, (Gov. related)
reportedly loaned 25, 20 and 15 million respectively to Tophat
last year. Persimmon wrote off their 25 million loan this year.
Also in July this year, a ‘winding up’ petition for the liquidation of
relevant companies, was lodged by Harworth Estates
Residential Developments Ltd. against Tophat Communities
Ltd. and Tophat Enterprises Ltd. (registered in Jersey), which
was settled on the day of the hearing, Aug.13th 2024.
Update: -The latest accounts for Tophat Communities Ltd. were
due for Companies House records on Oct. 31st. 2024, for
2023……….. indicated in November 2024 as ‘overdue’.
At the same time the recent Tophat announcement was made
in October, 2 large development and ‘fitting out’ companies,
ISG and ESS, also in connection with modular build, were
reported as in ‘administration’ as allegedly owing millions.
Such details indicated a huge blow for the construction industry
generally, with 2,000 redundancies reported in consequence.
Those companies would obviously be unable to take on the Boklok development in Yapton, if Tophat could not supply the
necessary ‘modules’, workforce to do so, or for installations.
Several other volumetric modular businesses have been
reported as folded in the last year or so, with substantial debts.
Allegedly indicative of current trends in the MMC industry in
general.
ADC Cllrs. refused the Boklok planning application for
Y/52/23/PL for 170 houses at a planning Committee Meeting on
Nov. 15th 2023. In result, an Appeal was accepted to review
the application by the Secretary of State Inspector, on
Aug.12th 2024.
Commencement start date in review by the Inspector, was
Sept.16th 2024. A determination is understood may take weeks
or months before any resolution is made public.
None of the additions put onto the planning website by the
Boklok agents or ADC planning, between Aug.12th and Sept.
16 th , nor the in ‘final comments’ by any of the signatories to
documents submitted on October the 17th and 21st. contained
any details of concern, about the trading position of Tophat, or
any indication of possible adverse impact on the outcomes of
the application in development.
Meanwhile, it is considered right, to question why such
important detailing regarding Tophat, was not made public on
the ADC planning website, to allow for public review and
comment.
Because of uncertainty that any such updated details had been
sent to the Inspector, by any authority source in association, it
is understood that residents informed him instead.
Details are also now made public through the BRHerald.
