Clugston has carried out a major restructure of its construction business after suffering a loss of £0.5m during the year to 31 January 2018.
The Scunthorpe-based contractor has divided its construction arm into three separate business units in reaction to losses incurred over the 12 months.
Clugston blamed the £0.5m pre-tax loss on demanding market conditions, restructuring costs and delays to the start of large contracts.
Turnover at the company hit a record high of £176m for the year to 31 January, compared with £118m in the previous year.
Changes at Clugston include the creation of three separate construction divisions: energy waste and renewables, regional and national, and facilities mManagement.
The new energy waste and renewables business will focus on the construction of energy-from-waste projects as well as new renewable energy projects.
Clugston Construction managing director Steve Radcliffe will lead the EWR division, supported by construction director Richard Greenwood and commercial director Jon Howsam.
The company is currently building three EfW plants alongside its French partner CNIM.
These include the Kemsley EfW plant in Kent, the Parc Adfer plant on Deeside, and Virdor’s £252m Avonmouth Recovery Centre near Bristol – Clugston’s largest ever construction project.
Clugston Construction director Rod Fry will lead the firm’s national and regional division alongside commercial director Mike McCarthy.
Former OCS and Emcor director Nick Blackstock joins the group to head up its facilities management business.
Despite the pre-tax loss, Clugston posted a cash position in excess of £30m, with zero bank debt.
Clugston chief executive Bob Vickers said: “Despite the challenging conditions in several of our key markets, together with investment in the restructuring, we have delivered another credible financial performance.
“With substantial growth in revenue, as well as accumulated cash balances of £30m and no bank debt, we continue to invest for the future and look to further develop our business by investing in our teams across all our divisions.
“Finally, whilst the markets in which we operate remain challenging and we believe this will remain so for the foreseeable future, I am sure that the restructuring we have undertaken, particularly within the construction area of our business, will create the focus and drive to enable us to continue to deliver successful projects and satisfy our customers and partners.”