A North East construction group spearheading some of the region’s most important developments says it has come through a difficult year which saw significant change for the company.
Gateshead’s Tolent is involved in major developments that include the construction of Newcastle’s tallest tower block, Hadrian’s Tower, as well as the long-awaited redevelopment of the Vaux site in Sunderland.
The company is one of the largest construction firms in the North East, but saw turnover fall 25% in 2018, going from £178.4m in 2017 to £133.7m. Operating profit, meanwhile, reduced from £3.7m to £1.8m.
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Tolent said the Beast from the East at the start of 2018 had significantly reduced turnover during the year, making it harder to get on site.
But it said it had started 2019 with an order book of £131m and was relatively confident, despite other major construction firms during the year and the risks of Brexit.
Chairman Craig Anderson said: “While the decline in turnover and profits relative to 2017 is disappointing, and partly unavoidable as a result of the severe weather early in the year, the margin performance remains encouraging and very credible relative to our peers.
“The balance sheet position is stronger and, most encouragingly the order book and outlook for 2019 is very healthy both in terms of value and spread of activities and geographies.”
Mr Anderson paid tribute in the accounts to two of the group’s founding directors, Trevor Phillipson and John Wood, who both stepped down from the board during 2018.
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Mr Wood is, however, remaining with the group to oversee Tolent’s £175m scheme to build a garden village at Seaham, County Durham. Around 1,500 homes, shops, bases for businesses and leisure facilities will be included in the project, which sees Tolent working with Newcastle housing association Home Group.
The accounts also highlighted work to create hotels for Travelodge in London and York, a £6.4m industrial development in Gateshead and hundreds of homes around the North East.
Mr Anderson added: “We have started 2019 on a very positive note in terms of both order book and prospects.
“In addition, under Andy McLeod and Paul Webster’s direction we have lanched a new strategy for the group with some very exciting opportunities and ideas under consideration.”