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Tolent flotation follows demerger
00:00 18 Aug 1999
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by John Leitch
Tolent, the building and civil engineering group, is floating on the Alternative Investment Market following its demerger from the Amco Corporation.
Tolent's Pre-tax profit in the 12 months to 31 December 1998 ran to £1.4 million on a turnover of £78 million, while in the first half of 1999, Tolent made a pre-tax profit of £900,000 from turnover of £39 million.
Tolent Construction was set up in 1983 by John Wood, trading from Gateshead in Tyne and Wear. Regional offices were subsequently opened in Wakefield and London. To counteract the effects of the recession in the UK construction industry, Tolent won work in the newly unified Germany - in Berlin in particular.
Stuart Gordon, chairman of Amco, said this week: "The move was a disaster. We had difficulty getting paid and were effectively squeezed out of business." As a result, Amco stepped in and bought Tolent in September 1995 for £1.
Its peripheral businesses were either sold or closed down. Wares - the M&E subcontracting business, was sold to its management while Gordon Plant Hire was bought by a competitor. "Management and financial controls within Tolent were strengthened," said Gordon. "We cut turnover back, tendering more selectively. The last few years have seen Tolent go from strength to strength, with profits increasing each year since 1996."
Tolent currently has 400 employees. Most contract values are within the £500,000-£4 million range, the largest project undertaken to date having a value of £19 million.
Amco specialises in driving tunnels and sinking shafts. It also owns Dosco, the manufacturer of underground tunnelling machines. It is listed on the Stock Exchange and has a market capitalisation of £11-12 million.
Asked why Tolent was being split from Amco, Gordon said: "It has turned out to be our growth business, the other parts are not doing so well. We think Tolent will do better as an independent group." Gordon argued Amco has net assets of £1.30 a share. Now trading ex-Tolent, the share price has fallen to 70p. Gordon expects Tolent to trade at around 28p.
Tolent, the building and civil engineering group, is floating on the Alternative Investment Market following its demerger from the Amco Corporation.
Tolent's Pre-tax profit in the 12 months to 31 December 1998 ran to £1.4 million on a turnover of £78 million, while in the first half of 1999, Tolent made a pre-tax profit of £900,000 from turnover of £39 million.
Tolent Construction was set up in 1983 by John Wood, trading from Gateshead in Tyne and Wear. Regional offices were subsequently opened in Wakefield and London. To counteract the effects of the recession in the UK construction industry, Tolent won work in the newly unified Germany - in Berlin in particular.
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Stuart Gordon, chairman of Amco, said this week: "The move was a disaster. We had difficulty getting paid and were effectively squeezed out of business." As a result, Amco stepped in and bought Tolent in September 1995 for £1.
Its peripheral businesses were either sold or closed down. Wares - the M&E subcontracting business, was sold to its management while Gordon Plant Hire was bought by a competitor. "Management and financial controls within Tolent were strengthened," said Gordon. "We cut turnover back, tendering more selectively. The last few years have seen Tolent go from strength to strength, with profits increasing each year since 1996."
Tolent currently has 400 employees. Most contract values are within the £500,000-£4 million range, the largest project undertaken to date having a value of £19 million.
Amco specialises in driving tunnels and sinking shafts. It also owns Dosco, the manufacturer of underground tunnelling machines. It is listed on the Stock Exchange and has a market capitalisation of £11-12 million.
Asked why Tolent was being split from Amco, Gordon said: "It has turned out to be our growth business, the other parts are not doing so well. We think Tolent will do better as an independent group." Gordon argued Amco has net assets of £1.30 a share. Now trading ex-Tolent, the share price has fallen to 70p. Gordon expects Tolent to trade at around 28p.
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