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Thompsons of Prudhoe 'thrilled' at 2025 opportunities despite fall in profit and turnover

2025-03-21 11:42:51 By

Demolition is a key part of the Thompsons of Prudhoe business

Directors at demolition specialist Thompsons of Prudhoe say they are excited at the opportunities in 2025, despite seeing turnover and profits fall in recent accounts.

The Northumberland business carries out demolition and dismantling, earthmoving and excavation, waste management, recycling and haulage operations across the North East. Recent investments have included a £10m spend on two washing plants for quarries at Springwell, Gateshead and Anick Grange, Northumberland.

The company has now published accounts for the year ended March 31, 2024, which saw it come up against strong comparatives from its 2023 performance – its 75th anniversary year in which it chalked up record figures.

As a result, turnover for 2024 fell 33% from £82.7m to £54.9m, while pre-tax profit also tumbled, from £18.2m to £24,147. The previous year’s operating profit of £18.5m was converted to a loss of £101,240 and overall profit for the year fell from £14.7m to £1.77m. Total equity increased from £35.9m to £36.7m.

A breakdown of turnover showed its contract work revenue fell from £66.2m to £39.5m, although its own product revenue rose from £4.48m to £6.1m. Group employee numbers dropped from 333 to 304.

During the year the firm acquired Lakeland Minerals Ltd, and accounts show the deal was struck for £2.43m. Since it was acquired, the firm has brought in £239,585 in sales, with profit of £63,403. A report within the accounts highlights how the year’s results came up against a number of big contracts seen a year earlier.

The report said: “The directors have considered the performance of the business during the financial year and are content with the result given the positive impact of large demolition and dismantling contracts in prior year and inflationary cost pressure during the current year.

“The cash position of the group is supported by a bank overdraft facility provided to the group. At the year end the group was not utilising this facility and has a cash balance of £12,265,647 (2023: £7,451,913). The balance sheet position, including the financing facilities and cash resources available, is considered adequate for the needs of the company for the foreseeable future.

“The group operates in a highly competitive market. In order to maintain its market share and minimise the risk of market penetration from competitors, the group prides itself in the efficient service it provides to customers. This is delivered by a loyal and experienced workforce. Management continues to explore different avenues of business development, delivering further efficiencies in the services provided and exploring opportunities in new locations.”

Following publication of the accounts, a spokesperson said: “We are thrilled about the opportunities that 2025 will bring, particularly the launch of the significant re-investments, including the fruition of two new washing plants at our quarries in Springwell, Gateshead, and Anick Grange, Northumberland. This £10m investment also includes substantial infrastructure upgrades to support these new facilities.

“At Thompsons of Prudhoe, we remain dedicated to positioning our business for continued success. The ambition, passion, and hard work demonstrated by our workforce over the past seven decades form the foundation for our next phase of growth. Our profitability has decreased this year, due to the conclusion of our flagship project at the Teesworks steelworks site last year, which had been a key driver behind the notable profitability spike in previous years.

“Despite the project’s completion, we are proud to have maintained our workforce throughout this transition.

“Looking ahead, 2025 is already shaping up to be a strong year, with new projects across the UK ensuring job security for our staff, including a move into Scotland.”

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