Contractor hit by £2.1m bad debt from High Street Group implosion
One of the country’s best-known regional contractors stayed in the red last year but managed to halve pre-tax tax losses.
North-east builder Tolent said it racked up a £4.4m loss in 2021 which was narrowed from the £8.5m loss it posted in 2020.
The firm, which has now filed its accounts at Companies House, parted company with chief executive Andy McLeod last October and was replaced by company veteran Paul Webster, then its COO.
Earlier this year, the firm replaced Andy Clark, who spent 26 years at the contractor, as finance chief with former Colas finance boss Mark Overton being brought in to replace him.
In his chairman’s statement, Craig Anderson said the new leadership had “restructured our operations making a number of changes at senior management level and redesigned certain processes with the aim of de-risking the business and returning to profitability”.
Tolent said it had been hit by the collapse of several developers and subcontractors with the firm saying that it was owed £2.1m by developer High Street Group – which sank into administration just before Christmas last year. The developer was behind Newcastle’s tallest tower, Hadrian’s Tower, which was built by Tolent.
The firm said its numbers last year had also continued to be hit by the pandemic and an unnamed loss-making contract. But revenue in the year hit a record £198m, up from £185m last time.
The accounts show Tolent did not claim any money from the government’s Coronavirus Job Retention Scheme, having been handed £1.1m the year before.
Tolent also shelled out £113,000 in redundancy costs, up from the £35,000 it paid out in 2020.
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