The pivot in management strategy comes after a corporate body blow during the pandemic. This saw revenue slump to just £18m in 2021 from £53m previously.
As a result of Covid restrictions and higher costs, Colmore Tang booked a £4.95m loss in the year ending May 2021, which also resulted in current liabilities exceeding assets by £1.9m.
The firm said its major shareholder was supporting the business as it transitioned to lower risk projects as a single-solution provider of cladding remediation services.
The once-expanding Midlands high rise flats and hotel builder also cut its cost base with headcount falling from 58 to 35 staff.
Chief financial officer Neil Martin said: “Turnover in the years 31 May 2022 and 31 May 2023 will materially reduce due to our decision not to tender for new, materially larger contracts with our principal client.”
Martin added: “The pandemic has affected many businesses in our sector and our losses also reflect the impact of problems and casualties in our supply chain and loans which we have written off.
“In order to mitigate delays management secured alternative procurement of materials and subcontract packages notwithstanding the additional expenses we had to incur.
“The current year result reflects appropriate provisions and costs to complete all contracts and forecast costs to satisfy all remaining defects periods.”
He added: “Since our inception in 2013, we have become the leading constructor of apartments in Birmingham and built a number of high-density schemes in the Midlands and south east.
“The ambition which enabled this remains undimmed and we will use this together with our combined experience to implement the next phase of management strategy.”