The UK’s demolition sector shows significant recovery from the pandemic, reversing previous downturns.
- The top 10 demolition firms in the UK achieved an 11 per cent increase in combined turnover.
- Erith takes the lead, surpassing Keltbray, with a remarkable 17 per cent rise in turnover.
- Thompsons of Prudhoe reports an impressive 83 per cent revenue surge amid large project completions.
- The sector faces future challenges, including climate pressures and legal fines from a cover-bidding inquiry.
In 2023, the UK’s demolition industry displayed a strong resurgence, overcoming the downturns experienced during the pandemic. The ten largest demolition firms collectively reported an 11 per cent increase in turnover, highlighting a robust recovery trend. Despite previous warnings about a potential market contraction in the coming decade, immediate results indicate a positive outlook, with combined revenue reaching £841.7 million.
Erith emerged as the leading firm in this year’s demolition index, replacing Keltbray at the top position. This ascent was driven by a 17 per cent increase in turnover, amounting to £191.1 million. While Keltbray experienced a drop in revenues, this was attributed to a more focused accounting of demolition-specific activities. Notably, Erith and Keltbray remain the only companies exceeding the £100 million turnover mark.
Another significant performance was observed from Thompsons of Prudhoe, which reported an 83 per cent leap in revenue, reaching £61.6 million. Directors attributed this substantial growth to the completion of large demolition and dismantling contracts which significantly boosted earnings compared to the previous pandemic-affected year.
Profitability also saw marked improvements across the board, with combined pre-tax profits nearly doubling to £37.2 million from £19.6 million reported in the previous year’s index. Notably, DSM Demolition led in profitability, reporting £11.1 million, followed closely by Thompsons of Prudhoe, which showcased an astounding 895 per cent profit rise to £6 million.
Despite the recovery, the demolition sector remains poised for future challenges. Among these are heightened expectations for sustainable practices due to climate change and the ongoing ramifications of a cover-bidding scandal. The latter resulted in fines totalling almost £60 million for seven contractors, with Keltbray and another company currently appealing their penalties.
The UK’s demolition industry is witnessing a rebound post-pandemic, but it must navigate upcoming sustainability and legal hurdles.
