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Clugston celebrates 75th year with record profits

Clugston celebrated its 75th anniversary in 2012 with record profits and a 30 per cent turnover hike that has taken it back into the CN100.

Turnover increased by 30 per cent to £108.7m from £83.8m in the previous year, while pre-tax profits trebled from £2m to £6.1m in the year ended 31 January 2013.

Energy-from-waste and education have remained core sectors for the firm.

Cash rose 65 per cent from £15.7m to £26m and there is set to be a final dividend of 17 pence per share.

The company said it had also had a “very positive” start to 2013.

Clugston Group chief executive Stephen Martin said: “2012 was a momentous year in the company’s history, as we not only celebrated our 75th anniversary but achieved record profits, strong cash balances and an order book that allows us to look forward with increasing optimism.”

The construction division of the company saw turnover increase by 32 per cent from £73.8m to £97.5m, with profits of £5.4m.

It is currently working on four energy-from-waste projects in Lincolnshire, Staffordshire, Oxfordshire and Shropshire, as well as a biomass plant in Kent.

All the projects are with joint venture partner Constructions Industrielles de la Méditerranée (CNIM), which also won the new Leeds Energy Recovery facility for Veolia Environmental Services.

The logistics business also reported an increase in turnover of 11 per cent to £10.9m from £9.8m, after diversifying into new markets such as the fuels sector; however, the division made a £0.6m loss. Clugston is planning to pull out of building products transportation.

Property progressed with a number of joint venture schemes, including handing over a 422,000 sq ft storage depot at Turbine Business Park in Sunderland for Vantec Europe; the property arm made a £1.2m profit.

Clugston said it was not expecting the construction market to grow until 2015. Its focus will remain on EfW, education, FM and refurbishment, it added.

The firm also said its injury-free record bettered the Olympics.

There were no exceptional costs for the year.

Mr Martin added: “While we expect several of our traditional markets to remain challenging, through our commitment to supporting our customers we have confidence in our ability to make further impressive progress in 2013.”

Managing director Steve Radcliffe told Construction News last month that its work in Staffordshire and Shropshire on energy-from-waste projects means Clugston has a supply chain in four of the five geographical areas for the new northern acadamies framework, whereas it only had a presence in three when it qualified for the current schools framework.

Clugston results breakdown

  • Group revenue: £108.7m (£83.8m)
  • Group tax profit: £6.1m (£2m)
  • Cash: £26m (£15.6m)
  • Construction revenue: £97.5m (£73.8m)
  • Construction pre-tax profit: £5.4m (£4.2m)

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