Colmore Tang Construction suffers £2.9m loss

Aaron Morby 4 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.

Latest news

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
39 mins ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
3 hours ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
4 hours ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
3 hours ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
3 hours ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
3 hours ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
3 hours ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
3 hours ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
1 day ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
1 day ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
1 day ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
1 day ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
1 day ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
4 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
4 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
4 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
4 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
4 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
4 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
4 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
4 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
5 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
5 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
5 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
6 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
5 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
5 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
6 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
6 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
6 days ago

Contractor services