Tolent鈥檚 2021 accounts show a 7% increase in group turnover to 拢197.9m, a new high for the company. The housing division grew by more than 40% in the year to turn over 拢66.2m.
The bottom line 拢4.0m loss after tax was attributed to 鈥榓 perfect storm鈥� of a bad debt, a loss-making contract and a challenging economic environment.
The loss was less than half the 拢8.3m lost (after tax) in 2020, although the 2020 loss was all on discontinued activities.
Pre-tax loss was 拢4.4m (2020: 拢8.5m loss).
Despite recent losses, the underlying business remains profitable, the directors insist, with the firm in 鈥榓 robust financial position鈥�.
There have also been some changes to the main board recently with Paul Webster moving up from chief operating officer to chief executive on the departure of Andy McLeod in October, and Mark Overton joining as chief financial officer in February 2022 after a decade at Colas.
Mark Overton said: 鈥淲e have worked hard over the last six months to financially strengthen the business and increase working capital which has included the renegotiation of our finance facility, a rights issues which raised 拢3.7m in new share capital and an 拢8m cash injection following the completion of a land deal which will soon become South Seaham Garden Village.鈥�
The group has also been exposed to the repercussions surrounding a large number of developers, contractors and supply chain partners falling into administration. Tolent was left with a bad debt of 拢2.1m from the collapse of High Street Group.
Chief executive Paul Webster said: 鈥淥ur priority moving forward is to secure a sustainable profit, working with trusted clients as we continue to increase our workload within the public sector. We are focused on consolidating our position within the Northeast and Yorkshire and will continue to deliver some of the flagship projects we have become known for.
鈥淣aturally with the increasing pressures on wage inflation, material prices and availability we have to be cautious in our approach to winning new work, however, we have a strong and identified pipeline of just under 拢1bn across a variety of sectors that provides us with the confidence to be cautiously optimistic for our business over the next few years.鈥�
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