Colemans, a Birmingham-based demolition contractor, reports a significant reduction in profit despite an increase in turnover.
- The company’s pre-tax profit dropped to £268,000 from £2.5m, even though turnover increased by over 10.6% to £12.98m.
- A lack of asset disposals this year has significantly impacted the company’s financial results.
- Colemans’ historical challenges, including workforce reductions and past incidents, continue to affect its financial health.
- The ongoing Didcot Power Station investigation remains unresolved, impacting stakeholders and bringing increased scrutiny.
Despite a turnover increase of 10.6% to over £12.98 million, demolition contractor Colemans experienced a dramatic decrease in pre-tax profit, which fell to £268,000 from £2.5 million the previous year. This juxtaposition of rising revenue and declining profit highlights the underlying financial challenges faced by the company.
A critical factor in Colemans’ reduced profitability is the absence of asset disposals, which generated £1.6 million in the prior year but contributed almost nothing in the latest financial figures. This shortfall in asset-based income has notably affected the company’s bottom line.
Colemans has seen a substantial shrinkage in size and operations since 2020, having previously forecasted a drop in revenue from £25 million to an anticipated range of £12 million to £15 million annually. This downsizing was aggravated by the necessity to cut its workforce by half due to the economic impacts of lockdown and a canceled shopping center contract.
In addition to the financial restructurings, Colemans underwent a rebranding process during its 60th anniversary year, consolidating its identity despite ongoing operational and financial challenges.
A significant incident impacting Colemans is the unresolved Didcot Power Station collapse investigation from February 2016, where four employees tragically died. The company continues to cooperate fully with the authorities, though it faces uncertainty regarding potential liabilities arising from the incident. The directors remain confident in existing insurance arrangements to handle any prospective claims, yet the prolonged investigation has placed a cloud over the company’s risk profile and stakeholder relations.
Colemans continues to navigate complex financial and operational landscapes amidst growing scrutiny and historical liabilities.
