Nottingham contractor suffers £3m loss

Contractor Clegg Construction has incurred a loss of £3.1m due to unforeseen challenges associated with fulfilling previously secured fixed-price contracts from previous years.

In its most recent financial report, the company, which is now employee-owned, cited inflationary pressures affecting material and labour costs.

Additionally, supply-chain disruptions on certain contracts and constraints in the subcontract market’s production capacity, resulting from high industry-wide trading volumes, further exacerbated their financial difficulties.

Despite this, the construction division of the Clegg Group successfully increased its revenue by more than 30% to £72m.

The company has also now noted that trading conditions have become more stable, enabling it to successfully negotiate and secure new projects, which are expected to be delivered profitably this year.

Clegg also said that the general contracting market continues to see a healthy influx of new inquiries, which has allowed it to establish a strong order book for ongoing and secured projects across various sectors, including defence, education, leisure, accommodation, and healthcare.

The Clegg Group’s overall performance saw notable improvement, mainly driven by the performance of its specialised division, Clegg Food Projects. This unit, serving the food and beverage manufacturing industry, achieved a pre-tax profit of £5.6m, compared to £1.4m in the previous year, with revenue nearly doubling to £78m.

Consequently, the Clegg Group’s total revenue reached £165m, and it reported a pre-tax profit of £1.5m, which showed a slight decrease from the previous year’s figure of £1.8m.