Clugston profits surge

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Pre-tax profits at reorganising Lincolnshire contractor Clugston went up last year even though revenues headed in the opposite direction.

The Scunthorpe-based group, which celebrated its seventieth anniversary in 2007, saw pre-tax profits climb one third in the year to January 2008 to end up at £2.6 million. Turnover slipped 21 per cent to £123.8 million.

In a statement, accompanying its results filed at Companies House, the group said revenue at its biggest division – its construction arm – had fallen £20 million to just over £92 million following delays to start dates on a number of jobs.

It said this business has been refocused into eight units and last December it recruited Steve Radcliffe from Interserve to head up this division. Mr Radcliffe replaced John Burnett who left after seven years.
In its latest results, chief executive Stephen Martin said: "A strengthening of our regional construction activities should enable us to improve margins further and to offset a potential slowdown in national workloads."

But he admitted: "Despite more opportunities becoming more visible, they still must be won in a highly competitive operating environment with a longer time taken to start on site after attaining preferred bidder status."

Clugston's other interests include logistics and property.

The number of employees at the business went up six per cent to just over 700 with the wages bill up five per cent to £21.5 million.

The salary of the highest paid director, who is not named, remained flat at £350,000.