Red diesel impact blamed for Collins Earthworks profit drop
Collins Earthworks, based in Ripley, reported a drop in pre-tax profits to £4.7m from £16.8m due to higher costs in the year leading to November 2022.
The company have said the removal of the red diesel rebate and increasing fuel costs were the main reasons for this drop, with cash at year-end also experiencing a decrease of approximately £6m to £4m.
Reports indicate that Collins faced rising expenses for materials like stone and aggregates, a challenge also encountered by their industry peers.
Directors have highlighted their intention to decrease expenses by concentrating their investments on hybrid machines, electric fleet vehicles, and the possible incorporation of all-electric 8-wheeler vehicles.
Despite this, revenue rose by 5% to £113m, and the workforce increased by almost a third to 400 employees