Colmore Tang Construction suffers £2.9m loss

Aaron Morby 3 years ago

Birmingham contractor Colmore Tang Construction has blamed several projects undertaken by a previous management team for plunging the business into a £2.9m pre-tax loss last year.

It also said the recent collapse of its Walsall-based glass balustrade and balconies supplier Stainless Handrail Systems, which it bought in 2018, would not materially impact on the group going forward.

Colmore Tang said it bought a controlling stake in the supplier largely financed by a bank loan under terms that necessitated growth of the balustrade business.

Colmore Tang looked to double turnover for SHS over the next two to three years, but it was hit by a downturn in trading at the end of last year forcing it into administration.

SHS has subsequently been bought out of administration by Derby investment company, Argento Investments, saving 35 of 52 jobs in the process.

Colmore said the collapse did not materially affect the group nor present a risk to it as a going concern.

In the latest company accounts for the year to 31 May 2019, Colmore Tang said a new management team consisting of chief financial officer Neil Martin and former Shaylor group director Simon Underwood, who joined as chief operating officer in 2017, had tightened up business procedures and strengthened the firm’s skills base to deliver more complex projects.

Under new commercial director Nick Backhouse, Colmore Tang has rationalised procurement of subcontractors and implemented fuller and more comprehensive orders.

Finance director Martin said: “This has enabled better control of the works in general, a more streamlined approach to subcontract valuation and improved our payment regime which averages less than 35 days.

“Furthermore we have now commenced to tender for works which will broaden our work base.”

Looking ahead he said Tang Interiors would be developed to be an outward-facing business focussing on third party works.

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