Clugston sees best profits for a decade
CONSTRUCTION specialist and property developer The Clugston Group has bucked the downturn in the sector by delivering its best results in more than a decade.
The Scunthorpe-based family-owned firm upped its pre-tax profits by 8% to £2.8m on turnover up 31% to £141.7m in the 12 months to the end of January.
Chief executive Stephen Martin said the current year had started strongly despite the “tough” market conditions and the group is in the running to work on a Government contract to replace secondary schools.
Mr Martin, who will feature in Channel 4 documentary Undercover Boss on June 25, said that the group’s “broad spread” of operations across construction, property development and logistics had helped it deal with peaks and troughs in its markets.
“We will not be immune to the impact of the credit crunch. However, with a greatly improved balance sheet, strong cash reserves and recently renewed banking facilities we are in a much better position to weather the economic storm,” he said.
The group’s operations range from refurbishing supermarkets for Morrisons to transporting steel for Corus, flour for food producers and working on a bioethanol plant in Saltend.
The best performance in the group came from the construction arm which increased turnover by £33m despite the tough market.
Stephen Martin, who joined the firm two years ago, attributed this growth to focusing on key sectors – industrial, energy, waste, retail and education – and a different approach to bidding for new contracts, giving better returns on the time invested.
The group has also strengthened its offices and operations in Newcastle and Leeds.
Earlier this year Mr Martin worked incognito as a labourer on the firm’s sites for the new TV series Undercover Boss.
He said: “This was an extraordinary chance to see firsthand what goes on in our company, without any gloss added for the benefit of management. It was a humbling experience. The camaraderie and support is incredible. People look out for each other because of health and safety – no matter what the age or role, everyone pulls together to do a good job.
“However there were problems. And I realised these were mostly in my remit. The biggest issue was communication. You try so hard in head office to communicate but going undercover, I realised very little of it gets through in the way intended. We are making significant changes across the group as a result of what I learned.”
