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Thu October 21 2021

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Clancy invests after threefold profit growth

24 Sep Civil engineering contractor Clancy has begun its largest ever capital investment programme after trebling its profits last year.

For the year ending 28th March 2021 Clancy Group Holdings made a profit before tax of £11.1m, up from £3.5m the previous year, on turnover down 14% at £255.2m.

The strong profitability and operating cashflow have enabled Clancy to embark on its largest ever capital investment programme, with £20m invested in plant, equipment and technology to sustain long term growth. 

The contractor, which employs 2,200 people across the UK, has a £1bn order book with a strategic focus on water, energy and wider infrastructure markets. 

Since the financial year-end Clancy’s has secured a new contract with Scottish Water to provide pipe and sewer repair and maintenance work for up to 12 years.  The expanded framework will help to double the size of Clancy’s operations in Scotland.  The business was also recently appointed by Northumbrian Water to its capital works and infrastructure construction framework, supporting its growing presence in the northeast of England.

Over the twelve months Clancy has made progress towards its ambition to reduce CO2 emissions by 50% from 2020 to 2025 with a 18% reduction in energy consumption and CO2 emissions.  It has also seen a further 25% reduction in utility strike rates with the use of technology and training, on the back of a 21% reduction in the previous year.

  2019-20 2020-2021
Total revenue £295.6m £255.2m
Profit before tax £3.5m £11.1m
Cashflow £20.1m £22.6m

Chief executive Matt Cannon said: “The pandemic has had a significant impact, but it has also highlighted the fundamental strength of our business.  Within a few weeks of the onset of the pandemic our team was predominantly classified as keyworkers and played an essential role in maintaining the country’s infrastructure throughout the pandemic.  This set of strong results is testament to their hard work and adaptability.

“Our strong financial performance and increasing profitability ensure that we are well positioned to support our clients to deliver much-needed operational and capital investment in their networks, while also identifying opportunities to grow and build on our core expertise in adjacent infrastructure markets.

“As we reach the half way point for the current financial year the major challenge faced by our sector as a whole is around resource.  As an independent business and direct employer, we are continuing to broaden our investment in people – attracting and retaining talent to so that we can fulfil both our ambitions and those of our clients.”

Chairman Kevin Clancy added: “We are a family run business and retain an entrepreneurial spirit which has enabled us to be agile and resilient throughout the challenges of the past year.  This has helped us to stay on track to deliver our long-term strategy, with results that reflect our journey over the last three to four years as much as the most recent twelve months.  Our model of direct employment and investment in people remains a differentiator at a time when the construction industry as a whole faces significant challenges over the availability of experienced resource.”

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