The Enquirer understands that around 70 roles are at risk with consultation now underway.

The Goldman Sachs-backed business has been trading since 2016 with investors – who also include Aviva and Persimmon – pumping in £200m of funding since then.

Latest results for TopHat Industries Ltd for the year to October 31 2022 showed pre-tax losses increased to £20.4 from £19.4m last time as turnover dipped to £10.2m from £12.3m while the company employed 212 staff.

The company said: “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.”