Persimmon writes-off ￡25m investment in TopHat

Persimmon has written-off the ￡25m it invested in modular house builder TopHat last year.

In its latest results Persimmon said the decision was due to “a re-assessment of risks within the modular build sector”.

But Persimmon is continuing to work with TopHat as it looks to boost output at its offsite Brickworks, Tileworks and timber frame Space4 factories.

It said: “We originally invested in the TopHat business because of its industry-leading facade product.

“While the broader market challenges for volumetric modular manufacture has led us to take the prudent decision to write down our original investment, we continue to work with TopHat as they reposition the business to focus on the facade product.

“During the first half, we trialled building a timber frame house using the facade at our Space4 factory. This trial saw the house built to roof, with the facade installed, within five days, demonstrating the clear opportunity for build efficiency and key supply chain resilience in the coming years.”

Persimmon posted a positive set of half-year results with housing completions ahead of expectations.

Dean Finch, Group Chief Executive, said: “Persimmon is a growing company with growing opportunities. The first half of the year has been strong with improved sales rates and robust average selling prices, despite ongoing affordability challenges.

“Strengthening consumer sentiment, improving macro-economic conditions and the government’s welcome and ambitious planning reforms that demand more of the high quality, affordable homes that are Persimmon’s core strength, are all supportive of our ambition to grow this year and in the future.

“We are opening more sites this year and will do the same next year, demonstrating the benefit of our continued land investment in recent years. This growing and strong platform means we are ready to deliver more of the homes our country requires while securing industry-leading returns over the medium-term.”