Brims Construction hails robust results in year of change and challenges

Directors at Sunderland construction company Brims have hailed a year of change and challenges after saving a regional division of collapsed contractor Tolent.

Turnover at the company rose 19.8% from £33.4m to £39.9m in the year ended March 2023, although rising costs impacted profits. Operating profit dropped from £2.3m to £1.3m, but Brims said cash balances remained strong throughout the year, decreasing from £9.5m to £7.7m.

Employee numbers grew from 80 to 95, taking the firm’s wages, pension and social security costs up from £4.33m to £5.7m. Just before Brims’ financial year end, Gateshead construction group Tolent went into administration after falling into financial difficulties triggered by huge costs on its biggest ever contract, Milburngate in Durham.

Within a week Brims had sealed a deal to rescue the group’s Teesside operation and directors Ian Clift and Richard Wood said the Tolent team had integrated “seamlessly” into Brims Construction. Mr Clift used his report to highlight “a robust set of results” having achieved pre-tax profit of £1.34m, down on the 2022 figure of £2.39m but “which is excellent considering the wide range of challenges that have been faced”.

He said: “As a result of the post pandemic bounce back, demand exceeded the available supply and suppliers found themselves under immense strain leading to shortages, delays and significant rises in costs. Shortages in skilled labour and sub-contractors has then added to the cost increases resulting in unprecedented construction cost inflation.

“However, consistent success as a construction company so often boils down to how challenges are dealt with and I am extremely proud that all of the Brims management and employees work extremely hard to do this – they are best in class.

“In February 2023, following the administration of Tolent Construction, we seized the opportunity to re-employ the management and employees of their Teesside operations including agreeing to purchase Tolent’s former office in Thornaby to provide Brims with a permanent base moving forward.

“All the Teesside management and employees have embraced the change quickly and I am delighted at how seamlessly the Teesside operations are now operating.

“I am therefore pleased to record another strong increase in turnover, a healthy profit and that we have secured our strongest order book to date of £79.69m and therefore have confidence of a further increase in turnover and profit for the next financial year.”

During the year Brims completed a number of high profile projects, including a £4m contract to convert the former Gilbridge Police Station in Sunderland into office space, and the £10.2m contract to create the Ad Gefrin, Anglo-Saxon Museum and Whisky Distillery in Wooler, Northumberland. Other schemes included a new £4.3m office development at AirView Park in Newcastle and the £2.2m refurbishment of Newbiggin Sports Centre

Following the publication of the accounts, director Richard Wood added: “It’s been another strong year for us, but also a challenging one for different reasons. After managing to step in to save and secure jobs on Teesside following the demise of Tolent in February, it signalled a significant change in the business in terms of turnover and also the number of employees we have.

“However, it appears to have been a good move for us, and it’s obvious that the Tolent Teesside division and Brims shared a similar outlook already and we look forward to bigger and brighter things as the company moves forward as two regions together.

“With the backing of the existing client base the Teesside order book has been very positive and along with the continued steady stream of work secured by the Sunderland office the outlook is very encouraging for 2024.”