Cheshire contract wins and strength in Area 9 prompt Colas decision to close regional business units

Colas decided in November 2023 to “exit activities” in its regional division, the firm said in its latest annual report.

Civils Firm Colas scraps regional business units after challenging year to focus on core projects.

The decision comes after Colas’ cash reserves shrunk from £9.2m to £5.7m,iIt paid no dividends in 2023, compared with £6.1m the year before.

"Soaring costs within the firm's regional contracting division were partly to blame for a surge in Colas’ pre-tax loss to £15.3m in the year to 31 December 2023, compared with £2.2m in the previous year," according to a report in Construction news.

However, the firm also reported an increase in turnover from £244.2m to £267.6m thanks to two 7 year contracts with Cheshire West and Chester Council, on which it started work in April 2023.

Colas also benefitted from a £328m contract to deliver highways maintenance work in Area 9 of the UK.

Colas also reported an order book for 2024 worth £236m compared with £181m recorded for 2023. The increase itself was mainly down to the contract for Cheshire West and Chester Council.