Clugston Group, a privately-owned firm, has reported a profit of £2.2 million before tax on a significantly reduced turnover of £143.4 million for the last financial year (2015/16).
These figures are a substantial fall from 2015 which was a record year for the company as profits reached £5.1 million on a £253 million turnover.
However, the company’s chief executive, Stephen Martin, insisted that the results are strong in the current conditions of the market.
Clugston’s construction sector made a £2 million profit and turned over £126.6 million, with its projects including: a new exhibition Hall at the Yorkshire Showground in Harrogate and two new care homes, two schemes for The University of Sunderland, projects with Siemens at Green Port Hull as part of the offshore wind manufacturing centre and the Leeds Recycling & Energy Recovery Facility.
Meanwhile, the company’s logistics division increased turnover by 5% to £16.1 million and transformed last year’s loss into a profit of £400,000.
Stephen Martin, Clugston’s Chief Executive, believes that the company has achieved another strong set of results with no borrowing from the banks, substantial cash balances of almost £20 million and solid profitability.
“We appreciate that the economic outlook is now more uncertain following the Brexit decision. However, we already have a substantial forward order book in place for the next two years and remain confident that we can continue to deliver acceptable levels of profitability,” Martin said.
He also insisted that Clugston is still making solid progress in securing more volumes of work in the care home and water sectors, and that they will soon start work on the firm’s 12th energy from waste site.
The Clugston Group’s full results were:
Construction: £2 million, logistics £0.4 million, property and other activities £0.2 million, net interest payable £0.4 million and profit before taxation £2.2 million.