Tolent turnover hit by project delays

Tolent’s turnover this year was expected to climb from £180m to £200m but delays in project starts have eaten into that plan. In reality, turnover will probably now run to £150m this year.

John Wood, chairman, said: “It’s a problem that we’re all in, in that it’s taking from here to eternity to get some schemes under way. We have one, worth between £30m and £40m, that should have started in April and we’ll only get underway two weeks on Monday.

“It means we’ve had teams sitting round because we’re not a hire-and-fire outfit. That means added cost and that comes straight off the bottom line, though of course we’ll make a profit”.

Tolent principally operates in the commercial sector. “It’s a bit like walking in treacle at the moment, you have to bulldoze schemes to get them over the line. Even so, typically there is a six- to nine-month slippage.

“Some projects have been indefinitely deferred, they’ve been put on hold and the client has not re-fixed the start date.

“The one that gets under way in two weeks has a blue-chip covenant as it’s a solid developer who already has a solid tenant lined up. It’s for three office blocks and a car park but getting the wrinkles sorted has taken six months longer than envisaged.

“It’s not just a problem for Tolent, everyone tells me the same is happening to them.

“We have another scheme, also a big one worth £30m-£40m, and it should have started in August only now that’s gone back to the New Year.”

Wood points out: “Tolent is stable. We’ve got positive cash.”