Teesworks demolition contractor reports increase in profits

Thompsons of Prudhoe Ltd, a demolition company based in the Tyne Valley in Northumberland, were awarded a £25m contract by South Tees Development Corporation (STDC) to demolish the Basic Oxygen Steelmaking (BOS) plant on the former Redcar steelworks site. It was part of a £150m tender from the public body shared between 9 suppliers to demolish and clear structures at the enormous Teesworks site near Redcar.

Accounts published at Companies House show the demolition company’s turnover for the year ending March 31 2023 had increased from £61.5m to £73m, with net profit increasing from £4.7m to £13.2m.

The BOS plant was demolished in October 2022 in one of the largest explosions seen in the UK for more than 75 years, and reportedly heard 8 miles away.

The project, which used 1.6 tonnes of explosives, won an award at the World Demolition Awards in Toronto a year later.

Thompsons’ Managing Director Nick Shilling said: “There’s no denying we’ve had an incredible 24 months within our business, which is testament to the achievements of our team and the support of our clients and wider supply chain – we can’t thank you all enough.”

Shilling said: “Whilst we recognise and celebrate this achievement, what we remain focused on is ensuring our business is set up for success for the next 75 years and beyond.

“The same ambition and passion that our workforce have shown over the last seven decades is what we take forward into our next phase of growth which is why the reinvestment of profit back into the business through various investments is incredibly significant to help us achieve our goals and continue to innovate within our industry.”

Profits being made at the enormous remediation project are coming under increased scrutiny after Teesworks Ltd published its latest accounts at the start of the month, and reported a tripling of net profits to £54m

Teesworks Ltd was originally a 50-50 joint venture between the public sector, however shares were transferred to private interests leaving the public with only 10 percent of the company.

Levelling Up Secretary Michael Gove was questioned by Parliament’s Business Committee the week after the accounts’ publication about whether he thought it represented good value for the taxpayer.

“I can’t answer that question, as you know,” said Mr Gove, referring to an ongoing investigation he commissioned into the governance and affairs of STDC, its parent authority Tees Valley Combined Authority, and Teesworks Ltd.

The independent panel, chaired by Lancashire County Council chief executive Angie Ridgwell, was expected to report its findings in the summer. The Yorkshire Post understands the delay to publication has been because the panel has undertaken much more thorough research than was initially expected within its terms of reference. It’s expected to imminently report its findings to Mr Gove.

Accusations of “industrial-scale corruption” from Middlesbrough MP Andy McDonald earlier in the year caused increased political pressure to conduct the investigation.