Press Release

CLUGSTON GROUP ANNUAL RESULTS 2007/08

The recently published results for Clugston Group demonstrated a period of progress and refocus.

Pre tax profits were up 36% to £2.6 million, against a 16% reduction in turnover at £108 million, demonstrating the benefit of the strategic move to concentrate on three core businesses.  Established on a subsidiary basis at the start of the financial year, each one has developed greater focus on their respective market and operational needs.

Construction activities, which include building, civil engineering and facilities management, saw significant progress during the period.  Although turnover dipped by 18% to £93 million, due to delayed starts on a number of contracts, operating profit of £0.41 million was a £2.54 million improvement on the previous year as more favourable margins were achieved.

In addition to the improved financial position, Clugston has also undertaken a refresh of its corporate identity and invested in new ICT to support its business systems

The appointment of a new managing director during the year and the recent restructuring of the main contracting business into 8 business units, designed to create a balanced work load between regional opportunities and key customers in core sectors, is expected to show further solid improvement.

With a steady stream of projects now coming to site after long procurement periods, such as the innovative £50 million Ecopark waste management facility for Graphite Resources in Gateshead, and other opportunities in the energy from waste sector, where Clugston Construction has built up a high level of expertise and market awareness, the contracting business has started the current financial year well.

Clugston, which has no exposure to the housing market and a balance of customers in the private and public sectors, particularly in education and health, is confident that it will be able to build on this platform in a year in which market conditions are generally expected to be tough.

Commenting on the results Group Chief Executive Stephen Martin said, “I am pleased with the steady progress made in what has been Clugston’s 70th anniversary year.  I would like to say a big thank you to our employees, suppliers and customers for enabling Clugston to continue developing core activities in construction, logistics and property.”

To view the Report and Accounts in full please click here