Demolition group Coleman suffers third year of losses

Aaron Morby 1 year ago
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Demolition specialist The Coleman Group has suffered its third year of consecutive losses after being hit by cancellation of the group’s largest single project at the Broadmarsh Shopping Centre in Nottingham, the failure of a subcontractor to complete work and the pandemic.

The group reported a £3.3m loss in the 18 months to October 2020 from revenue of £26m. Around £1.7m of the losses came from the failure of a subcontractor to fulfil its part of a contract leaving Coleman to complete the work.

This followed a £616,000 loss in 2019, and 2.8m in 2018.

But after a business restructure, which saw staff number cut by half as the firm slimmed down to target £15m-£18m annual revenue, group chief executive Mark Coleman predicted the business would return to profit in 2021.

He said: “Since the year-end the directors have continued with the re-organisation programme. With the new slimmed down structure, the directors are confident of a return to profit in 2o21.”

Within the CNC holding group structure, the main Coleman demolition business reported a pre-tax loss of £2.1m.

Coleman Specialist Cutting ran up a near £650,000 loss, and Coleman Remediation returned a loss of £690,000 after nearing losses of £320,000 in connection with the major loss-making contract it shared with the demolition operation Coleman & Company.

The group also sold all plant not being effectively utilised raising £2m, with only a loss of 0.5% on value.

 

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