Construction firm hails record turnover as restructure takes shape

Construction firm Clugston Group has reported record revenue, rising 49%, following a major restructure in what it called “another year of demanding marketing conditions”.

The company, which has offices in Scunthorpe and Leeds, saw revenue rise from £118.2m to £176m for the year to the end of January.

It said that specific challenges and the cost of a restructuring programme resulted in a small loss before tax, of £500,000 from a £1m profit the year before, but the group said that from a strategic perspective the business made “real progress” in building the foundations for sustainable growth and profitability.

The restructure included changes to its leadership team, including appointments to its HR, IT, logistics strategic land and facilities management divisions.

The company has also split its construction division into three profit centres – regional and national, construction, facilities management and energy from waste.

“Each of these divisions will have a dedicated management team ensuring a focused approach to our key markets and customers,” Clugston said.

It added: “The group has maintained a strong balance sheet with strong cash reserves and no debt. The order book within the constriction business is at record level and the pipeline of developments within property will deliver sustainable profits for the group.”

Looking ahead, chief executive Bob Vickers said: “Whilst market conditions will remain challenging in some sectors, the board is confident that with its strong financial positions, and the reorganisation it is implementing, the group is well places to deliver improved financial performance in the near term and in the longer term to achieve its strategic vision of developing and maintaining a sustainable business for the benefit of its stakeholders.”