Developer downsizes after posting £5m loss
A Birmingham developer has been “significantly downsized” after suffering significant losses.
Residential developer Colmore Tang says the move has come after the pandemic hit the business with the completion of older projects becoming a “drain on cash”.
The firm has posted a loss of almost £5m for the year to May 2021, with revenues falling dramatically from £53m in 2020 to just £18m last year. That figure will “materially reduce” in the years to May 31 2022 and 2023 due Colmore Tang’s decision not to tender for larger contracts.
Colmore Tang says it is now switching focus to deliver specialist cladding remediation.
Meanwhile, staff numbers during the year were cut from 58 to 35.
A statement signed off by chief financial officer Neil Martin said: “The group will maintain its focus on careful selection of specialist construction projects in particular cladding and facade remediation. This, together with the professional approach of its highly skilled, customer focused employees and partners from a competitive cost base, will ensure management is well-placed to take full advantage of customer and market opportunities as they arise.”
Colmore Tang was launched in 2013 and grew into one of the most recognised contractors in the Midlands, delivering over 3,500 residential units, a 253-bedroom hotel and over 180,000 sq ft of retail space.