Colas Rail’s annual revenue reached an all-time high, marking a significant financial milestone.
- The company’s pre-tax profit surged by 58% compared to the previous year.
- Rail construction dominated the firm’s turnover, contributing the majority of the revenue.
- Employee numbers increased, resulting in an expanded wage bill exceeding £100m.
- A large provision was set aside for potential future worker claims.
In 2023, Colas Rail achieved a record annual revenue of £403.7 million, a notable increase from the previous year. This substantial revenue growth played a critical role in boosting the pre-tax profit by almost 60%, elevating it to £27.9 million from 2022’s £17.7 million. The firm’s margin saw a significant expansion, increasing from 4.7% in 2022 to 6.9% in this period.
Rail construction projects were the main contributors to this financial success, bringing in £281.9 million compared to £252.4 million the previous year. The remaining turnover stemmed from the freight and maintenance division of the company. Despite the adjustments from a ‘statutory audit,’ which affected the stated profits, the overall financial health of Colas Rail remained robust.
Colas Rail’s workforce grew, with an average of 1,454 employees working monthly, an increase from 1,342 in the previous year. This rise in employee numbers saw the company’s annual wage bill surpass the £100 million mark in 2023. The organisation also reported a decrease in staff turnover, reducing it from 13.5% to 9.7%, indicating improved employee retention.
In anticipation of future liabilities, Colas Rail set aside a provision of £325,000, recognising the potential for future claims from former workers due to industrial diseases. This move reflects the company’s proactive approach towards managing potential risks associated with historical working conditions.
At the end of the year, Colas Rail’s outstanding trade and subcontract purchases were notably efficient, with 28 days outstanding, an improvement from 33 days in 2022. Although no dividends were distributed during the reported period, the company disbursed a £45 million dividend to its parent company, Colas Rail Holdings Ltd, afterwards.
Colas Rail’s strategic growth and financial performance in 2023 highlight its strong position for future industry challenges.
