Civil engineering contractor Clancy Group has reported a decline in both pre-tax profit and turnover in its latest financial results.
The firm saw turnover of £257.2m for the year to 31 March 2016 – down 8.5 per cent compared with £280.9m the year before.
Pre-tax profit dropped by 29 per cent over the same period, falling to £3.3m from £4.7m in its previous results.
Clancy said its profit had been hit by “an increasingly competitive market” as well as establishment costs from new framework agreements won during the last year.
Wins included a mains renewals framework with Sutton and East Water, which could run for 10 years, while the firm also has places on utilities frameworks for Anglian Water, Southern Water, South East Water and Scottish Water.
CEO Seamus Keogh told Construction News in September that the firm wanted to grow turnover to £320m by 2020, while improving margins from 1-3 per cent to 3-5 per cent.
Mr Keogh is the company’s first chief executive, with the business having previously been run by the Clancy family, including four members of the third generation working for the contractor.
The firm added that its energy business had won a place on a framework with Northern Powergrid in the North-east and Yorkshire.
The contractor also signed long-term frameworks with UK Power Networks and Scottish Power during the year.
Clancy will refurbish and upgrade electricity substations, cables and power lines across London, the East and South-east as part of the UKPN framework alongside Amec Foster Wheeler, McNicholas and Morrison Utility Services, as part of a 12-year, multi-billion-pound alliance.
In the South, Clancy’s rail business remains focused on works with Transport for London, with the company working across the London Underground, Overground and DLR networks.
Clancy has teamed up with Spanish contractor Acciona to bid for the £260m Barking Overground extension, as revealed by Construction News in August.