The chief executive of North East construction company Tolent Plc is stepping down after steering the firm through the most difficult year in its history.
The Gateshead group announced that Andy McLeod will leave the role as it revealed the impact of the Covid-19 pandemic - combining with the closure of its southern business - triggered an £8.5 million loss for 2020.
Mr McLeod leaves Tolent at the end of next month, having spent four years with the firm.
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Paul Webster, the current chief operating officer, becomes CEO with immediate effect.
Mr Webster has been with the group for over 23 years and has been on the main board since March 2018.
The boardroom shake-up follows the announcement earlier in the year that Andy Clark, chief financial officer, will also be leaving. His replacement, an experienced CFO from within the construction industry, will be joining at the start of next year.
Despite posting the significant loss, Tolent said it has seen a number of successes, including the completion of Newcastle skyscraper Hadrian’s Tower and Sunderland’s NHS Nightingale Hospital.
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Looking ahead, Tolent has a strong order book but the firm’s non-executive chairman, Craig Anderson, said the company is mindful of supply constraints and inflation.
He said: “I very much look forward to working with Paul and the rest of the team as Tolent enters a new stage in its development and wish the two Andys all the best in the future with thanks for their efforts over the years.
“2020 has undoubtedly been the most difficult year in the group’s history. Despite record turnover of £185m the group recorded losses of £8.3m with the impact of Covid-19 exacerbating difficulties associated with closing its Southern business which resulted in losses on discontinuing operations of almost £12m. The ongoing business remained resilient, posting profits of £3.6m, helped by a committed and dedicated workforce.
“To strengthen the balance sheet and fuel future development, a two-year £12m refinancing exercise was successfully concluded in May of this year.
“In 2021 the business is once again trading profitability but margins remain under pressure as a result of ongoing material supply issues and inflation. Looking forward, the focus will remain on its core businesses in the North East and Yorkshire that have remained profitable throughout.”
Commenting on his new role and the prospects for Tolent, Mr Webster said: “The last 18 months have certainly been some of the most challenging that I can remember in my 23 years at Tolent, but we are well placed as we move towards 2022 with a healthy forward orderbook and over £130m of secured and probable work across a wide variety of sectors.
“I am both honoured and delighted to lead the business and our teams into the next stage of our development.
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“Despite the ongoing industry and global difficulties we have many recent success stories which is a testament to the dedication and hard work of all our colleagues.
“These include the completion of Newcastle’s tallest building, Hadrian’s Tower, and the transformation of the NHS Nightingale Hospital in Sunderland which has led to numerous further contracts for the Newcastle Hospitals Trust.
“2022 will see the completion of our largest project to date, the challenging and prestigious £84m Milburngate mixed use development in Durham, and the continued expansion of our residential business in the North East and Yorkshire which is set to deliver more than 2,000 units over the coming years, covering both the public and private sectors.”
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