Coleman’s largest single project – a redevelopment of the Broadmarsh Shopping Centre in Nottingham – has been cancelled as a result of the economic fall-out of the Covid-19 crisis. Other projects have been delayed, including work at Euston station for HS2, the Coventry Point office block deconstruction, and work for the National Grid, Coleman said.
Nottingham's Broadmarsh Shoping centre is owned by Intu, which is battling its own money worries at the moment, trying to stave off collapse.
Coleman directors have now begun consultation with employees on the level of redundancies they require. Volunteers have been invited to present themselves to make the cull easier.
While the number of jobs to go has not been disclosed, group chief executive Mark Coleman gave an indication by saying that the business had to be scaled back to around half its current size.
“It is devastating that good people will be leaving us as a result of this restructure, but like many other businesses in the UK we have faced the most difficult and challenging trading conditions of our lifetimes,” he said.
“We foresee our business as operating more efficiently with an annual revenue of £12m-£15m, compared to the current level of £25m. We see a future where our management expertise remains at the core of our capabilities. By leveraging industry partnerships, we will become more cost-effective and flexible.”
Mr Coleman added: “After 57 years in this business we have a wealth of knowledge, robust client relationships and a strong heritage to draw on. We will emerge from this restructure not just nimbler – and with a more scaleable model – but as leaders in the use of technology and smart partnerships to deliver the most efficient and effective results for our clients”.
Coleman’s latest accounts, for the year to 30th April 2018, show a pre-tax loss of £1.5m on turnover of £15.5m
The company was already struggling before the virus hit. Coleman Group’s most recently filed accounts show a pre-tax loss of £2.8m on turnover of £21m for the year to 30th April 2018. In the previous year, it made £1.3m pre-tax profit on £33m turnover.