Highways contractor Colas has sharply reduced its annual losses after a major overhaul of its UK highways operations and a tighter focus on core profitable markets.
The contractor reported a pre-tax loss of £2.1m for 2024, improved from a £13.3m loss in the prior year.
The deficit was mainly caused by finance costs linked to unpaid claims on construction projects, but the business returned to operating profitability with a £0.8m surplus as its turnaround plan took hold.
Turnover edged down 4% to £258m as Colas continued to exit regional contracting work and concentrate on its asset maintenance and surfacing operations.
Chief executive Faical Lahmamsi said the strategy was starting to pay off. He said the company’s focus on profitable markets and halting loss-making activities had successfully returned the business to operational profitability.
The business is now built around two main streams – asset and maintenance solutions, and products and surfacing solutions – with strong pipelines in both.
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Colas also benefited from the launch of Continental Bitumen UK, strengthening material supply and supporting its low-carbon product strategy.
Cash at year end more than doubled to £13.4m, while the order book slipped to £213m from £236m due to the regional business wind-down.
