Gateshead firm Tolent to quit AIM market

Feb 9 2010 by Peter McCusker, The Journal

CONSTRUCTION form Tolent will quit the stock market next week after shareholders agreed the recommendations of the company's board to delist.

The Gateshead-based firm announced its intention to quit last month and at a general meeting yesterday the resolution put to shareholders was passed.

The cancellation of the company’s ordinary shares from trading on AIM (Alternative Investment Market) will take effect on February 16.

Established by John Wood 26 years ago, Tolent has been a mainstay of the North construction and civil engineering industry in that time with offices on Tyneside, Teesside, Leeds, Manchester and London.

Like many construction companies Tolent, has suffered during the recession, cutting its workforce from 540 to 300, with annual revenues declining from £150m in 2008 to around £100m last year.

Mr Wood said: “When turnover is down and you are listed on AIM then you have to make an announcement, and in the current climate this can make clients twitchy.

“Clients look at these things and wonder what is going on, but as a private company there is no requirement to make announcements such as these.

“We are not a company that is in any kind of trouble. We are a strong, solid business with a healthy order book of £53m. We have cash reserves of £6.5m. We have no debt and we are very competitive. This year we expect revenues to be flat at £100m, we will break even, but we aim to keep our best staff and will be in a good position for 2011 when we will hopefully see a sustained recovery.”

Tolent is the latest regional company to quit the stock market.

In May 2009 Prudhoe-based telecoms group BNS delisted from the AIM market. In March Killingworth-based property and construction group Metnor quit AIM, and Newcastle-based Northern Recruitment Group quit the FTSE in December 2008.