A prominent Midlands demolition contractor has a new ownership structure, following a difficult few years of trading.
Mike Henderson, the managing director at Leicestershire’s AR Demolition, and taken control of the business in a partnership with finance director Matt Munro, and founder and CEO Richard Dolman.
The new structure follows a turbulent period for the company, which was founded in 2007, and is based just outside Market Bosworth.
READ MORE: {}
Following a period of restructuring in 2017 – when turnover dropped from almost £16 million to less than £13 million and it reported pre-tax losses of £1.4 million – accounts for 2018, which are the most recent to have been published, showed it had had the “best year’s performance” in its history.
They said turnover was up more than a quarter to £15.8 million and pre-tax profits were £832,000.
The establishment of the new team at the business comes in the wake of what it said were further disappointing results in 2018/19 – followed by a number of redundancies – before an upturn in performance last year.
AR Demolition has worked on some major Midlands projects in recent years including helping knock down Belgrave flyover in Leicester and the British Union Shoe Machinery factory, which once stood nearby.
It also demolished the five storey car-park, bus station and link bridge at the Broadmarsh shopping centre in Nottingham, and played a part in the £500 million King’s Cross Station ticket concourse development, which opened in 2012.
Most Read
Mr Henderson has worked in the construction industry for 18 years and joined AR’s senior management team in late 2016.
He said strong growth had not been matched by appropriate business development or changes to the management structure.
He said “Since I joined AR Demolition we have had a number of challenges regarding management of the business.
“The company has grown exponentially several times, based on Richard’s talent and reputation, but we’ve not looked after the growth as well as we might have done.
“That’s culminated in a disappointing year in 2018/19 and, in December 2019, just before Christmas, Rich, Matt and I sat around a table and we realised we were at a point of reckoning where the management of the company needed a change in direction, which ultimately led to a change in ownership.
“Since then we’ve set out a plan to return the business to its core values.
“We’ve now steadied the ship and managed to put in the building blocks for the future removing management tiers and appointing additional technical competence where necessary.
Don’t miss
“At the same time we’ve created the underlying systems the company needed to ensure that the three of us have the requisite control of our operations and an empowered workforce to deliver our exacting standards consistently.
“As a result performance, since enacting the plan, has been exceptional and the green shoots are clearly there.
“This is all in the backdrop of one of the most challenging times for businesses in our lifetime, with the impact from the pandemic.
“The next step is to focus on our core competencies without deviating from our specialisms just because opportunities present themselves – we have a well-earned reputation for excellence and innovation and it is important to maintain that.
“Further down the line, we will look to maximise the value of our services and branch into other areas.
“But we’re never going to chase turnover if it means compromising quality – otherwise we risk disappointing our customers and demotivating our staff.
“For now, between Richard, Matt and me we bring all the necessary skills to the table.
“We’re a formidable team and we’re ready to take the business to the next level.
“We want to be working with good people for good people, doing the best projects we can, helping people out with our technical expertise.
“It doesn’t matter how we’re judged against competitors in terms of size or turnover, as long as we’re doing the right work for the right clients.”
Mr Munro, who joined the business in 2017, said: “It is a privilege to be a part of this partnership with Richard and Mike.
“I feel our team dynamic is incredibly exciting and will unlock a world of future opportunities.
“There is still a lot of work to do to get to where we are aiming, but our progress so far, particularly through a pandemic, is testament to the skills and resilience that the three of us bring to the table.
“The business has always had a lot to offer, great people and a great reputation, we’ll be using this as a launchpad to firmly carve out our place in the marketplace.”
Richard Dolman founded the business with Andrew Thompson, and Mr Thompson will continue his involvement in the group, as the managing director of its newly rebranded Leicester-based aggregates recycling firm Aggrecycle.
Mr Dolman said: “Our story over the past few years demonstrates the difficulties that growing small businesses can have in terms of effective management of that growth.
“Everyone who’s worked for the company over the years has wanted what’s best for our business, our customers and the people we employ. But sometimes definitions of success differ.
“So it’s good to be working in a small team of directors who share the same values and aims, with two people in Matt and Mike who I trust to make the necessary decisions to ensure the future prosperity and success of the business.
“We have an exciting opportunity at AR Demolition – a reputation to be proud of, a growing list of satisfied customers and an important role to play in an industry which is modernising its way through challenging times for all construction businesses.
“The company’s in good hands and is well set for the coming years.”