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Wed May 12 2021

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Clugston profits shrink 80% in two years

20 Jul 17 Delays to project starts impacted on revenues at the privately-owned Clugston Group last year and profits have shrunk again.

Clugston chief executive Robert Vickers (David Lee Photography Ltd)
Clugston chief executive Robert Vickers (David Lee Photography Ltd)

For the 2016/17 financial year, Clugston made a £1m pre-tax profit (2015/16: £1.6m) on turnover down 18% to £118.2m (2015/16: £143.4m.)

It has been a tough couple for years for Clugston. In 2014/15 it made £4.7m pre-tax profit on £160m turnover. In two years, therefore, profits have fallen nearly 80%.

But chief executive Bob Vickers, who joined the business from Carillion in February when Stephen Martin left to run the Institute of Directors, was upbeat about prospects.

 “Whilst a challenging year, primarily due to delayed projects, our strong results are a reflection of the quality of our people across the group,” he said. “We have delivered another strong financial performance, with solid profitability, substantial cash balances of £18m and no bank borrowings.”

He added: “We remain very positive about the opportunities to grow the business and with a forward order book already secured sufficient to generate a turnover in excess of £170m this current term, we are well positioned to capitalise on the growth potential in our target markets, with a substantial pipeline in place for the following years.”

Projects completed by Clugston's Construction division last year, which recorded a turnover of £101.6m, included a new Ikea store in Sheffield and a Jaguar Land Rover showroom for Duckworth JLR in Boston.

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