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Urban Splash is cutting jobs after experiencing a tumultuous financial year due to the collapse of a modular housing joint venture.
The Manchester-based company is hit with a pre-tax loss of £2.9 million.
According to recently filed documents, the firm reduced its workforce from 128 to 89 in 2022.
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This financial setback starkly contrasts the prior year when Urban Splash had reported a profit of £3.9 million.
Additionally, the company's turnover from October 1, 2021, to December 31, 2022, declined from £66.5 million to £40.1 million.
The most substantial factor contributing to this downturn in Urban Splash's fortunes was the failure of its modular housing branch.
In May 2022, this joint venture, involving Urban Splash, Sekisui House UK, and Homes England, went into administration, causing the loss of 160 jobs.
This venture owned various development sites and a modular building factory in Alfreton, Derbyshire.
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The joint venture later appeared to owe creditors over £8.3 million, with an estimated total deficiency of £4.4 million.
Urban Splash said: "The year has been a period of consolidation following the administration of the previously de-merged modular housing business in May 2022 which negatively impacted the group's results.
“The loss of construction-related trading with the modular housing group resulted in a review of the group's approach to construction."
As a result of this review, the company decided to reduce in-house construction activities.
It instead focuses on third-party main contractor procurement for construction projects, including those held in joint venture partnerships.
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