Clugston Group's new structure revealed after busiest year ever

By Scunthorpe Telegraph | Posted: 3 Aug 2018

Clugston Group’s new structure for growth has been revealed following the busiest year in its history.

As reported yesterday, turnover increased by virtually 50 per cent to £176 million, but the 80-year-old business didn’t deliver a profit.

Now, having anticipated the position, the board has implemented a restructuring programme to ensure it remains focused on “providing an exceptional level of service to its customers, while positioning the businesses for further projected strategic growth”.  

A new Energy Waste and Renewables division has been created to focus on these, and similar, complex civil engineering projects, having established a market-leading position in the sector, with a 15th project now being embarked upon. 

This new division, an integral part of the Clugston growth plan according to chief executive Bob Vickers, sees Steve Radcliffe, managing director of Clugston Construction, focus on developing it, supported by Richard Greenwood and Jon Howsam, who have been appointed divisional construction director and commercial director respectively.

The move, which includes several new senior management appointments and promotions, will allow for greater focus on customers’ needs, provide opportunity for innovation and ensure its dedicated teams have project continuity in this complex arena. 

Currently the EWR division has three major projects on site in Kent, North Wales and Avonmouth, as well as a strong pipeline of multi-million-pound projects across the UK.

Rod Fry, a long-standing experienced Clugston Construction director, will oversee and develop the existing regional and national construction businesses in conjunction with Mike McCarthy as divisional commercial director. Clugston has plans to grow its existing building and civil engineering services in both the private and public sectors, delivering projects through a network of regional offices.

Further investment in people and resources in other areas of the group include a new leader for the Facilities Management division with the appointment of Nick Blackstock, who has recently joined. He brings a wealth of experience in the sector to further develop its existing portfolio of long-term contracts for both existing and new customers across a range of sectors.

Mr 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 £30 million 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.” 

As reported, the investment in restructuring the group as well as supply chain challenges in some localised areas, and wider macro-economic factors which led to delays to the commencement of a couple of large contracts, contributed to a small pre-tax loss of £500,000.

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