Clugston files for administration

Aaron Morby 2 years ago
Share

Scunthorpe-based Clugston Group has filed a notice of intention to appoint administrators with the courts.

Chairman John Clugston was due to retire next month
Chairman John Clugston was due to retire next month

For several weeks subcontractors have been contacting the Enquirer warning that payments have been stopped with no explanation.

The firm is also understood to be bogged down in several legal claims for payment.

Sources told the Enquirer that staff were told to return cars and phones on Thursday ahead of an announcement expected Friday morning to confirm that insolvency partners with accountant KPMG are to be formally appointed.

One subcontractor working on a major education site said: “We were not paid at the end of last month and neither were a lot of other specialists on the site.

“We couldn’t get in touch with them to talk about what was happening, which set the alarm bells ringing.”

According to documents filed with the court on 3 December, Clugston Group, Clugston Construction and the haulage business Clugston Distribution Services have all filed notices of intention to appoint administrators.

Latest published accounts for the family-owned business in the year to 31 January 2018 revealed record revenue had been achieved, up 49% to £176m.

But this failed to translate into profits with the group booking a £500,000 loss.

At the time, Clugston also reported net assets of £14m with year-end cash of £30m and no bank debt.

Chairman John Clugston, the son of founder Leonard Clugston, last month announced he would be retiring in January 2020, with the plan to hand over to David Clugston.

The business, which was founded 82 years ago, earned a reputation for treating its staff well, and grew rapidly on the back of the boom in energy for waste plants where it built up a strong business relationship working with French process engineering business CNIM.

Presently it is working on an £800m energy recovery facility on Deeside, a £220m resource recovery centre in Avonmouth and £210m combined heat and power plant in Grangemouth.

Latest news

Three in race for latest £500m HS2 contract

Shortlist confirmed for 36 mile section connecting the West Midlands and Crewe
2 hours ago

Keltbray appoints new director to head-up HS2 contracts

Former Carillion and Network Rail director Neil Lindley to lead HS2 works
44 mins ago

Furious nmcn subbies left holding £60m in unpaid bills

Suppliers believe they were "strung along" by nmcn management
23 hours ago

Battle starts for £600m YORbuild minor works deal

Third generation framework to emphasise offsite and net zero capability
7 hours ago

JCB targets first hydrogen diggers by end of 2022

Plant giant is investing £100m in developing super-efficient hydrogen engines
5 hours ago

Ringway to replace Kier on Surrey roads deal worth up to £2.5bn

Massive maintenance contract could last up to 21 years
15 hours ago

House builders and public bodies get biggest CITB training grants

Housing giants and councils among biggest beneficiaries
6 hours ago

BAM Nuttall names new major projects MD

Richard Prime promoted to fill role vacated by Ian Parish who is now Interim MD
6 hours ago

Offsite Homes Alliance courts firms for £4bn MMC framework

Alliance of social landlords in the North aims to build 10,000 offsite homes per year.
6 hours ago

Multiplex set to start on £50m Crossrail office site

Developer Grosvenor awards deal based on bidders' commitment to science based carbon reduction targets
1 day ago

Foreign investors to pump £10bn into UK green infrastructure

Wind farms, green warehouses and sustainable homes make up sustainable infrastructure spend
1 day ago

Bellway targets £1.25bn profit over next two years

Material and labour shortages hamper plans to ramp-up construction levels
1 day ago

Pay deal ends strike threat by cement drivers

More than 200 Hanson HGV drivers win 6% pay rise
2 days ago

Segro plans first urban six-storey industrial building

Innovative new industrial building includes two floors for car parking
2 days ago

Ballymore puts in plans for major Royal Docks scheme

Construction could start in 2023 on 1,610 new homes on riverfront site
2 days ago

Morgan Sindall takes social housing upkeep into ‘tech age’

Firm's Goldeni remote home health monitoring system for preventive repairs
2 days ago

Electrical engineer killed as car crashes into pavement job

Second worker seriously injured after vehicle careered off the road in Rochdale
3 days ago

Vast earthworks job out to bid for £150m rail testing facility

3 million m³ of earth to be shifted at open cast site for Global Centre for Rail Excellence
2 days ago

Former nmcn telecoms director joins HE Simm

Peter Lambert returns to M&E sector as commercial leader
2 days ago

Next phase of £650m Nottingham Island Quarter revised

Rethink builds in construction flexibility in face of material shortages and labour availability
2 days ago

London councils set out £98bn plan to retrofit 3.8m homes

Councils call for more Government support in Retrofit London Housing Action Plan
2 days ago

Concrete, steel and glass buildings are ‘racist’

Green professor believes high-carbon buildings "morally indefensible"
5 days ago

Booming Winvic eyes near £1bn revenue next year

Firm forecasts near 50% revenue growth and targets main public infrastructure clients
5 days ago

Mutiplex launches flexible working to attract more women to industry

Contractor brings in new ways of working for all 825 UK staff
5 days ago

London council terminates United Living housing repairs deal

Morgan Sindall drafted in for £15m responsive repairs deal
5 days ago

Crane operator electrocuted after striking power line

Court hears how worker was killed operating lorry mounted crane during materials delivery
5 days ago

Bristol contractor stops work on sites

Hartry Global Limited staff looking for new jobs
6 days ago

Sisk to get new CEO as Steve Bowcott steps down

Paul Brown to take on new role from January
6 days ago

Supplies and skills shortages delay Midland Met hospital opening

Balfour set to miss Midland Met hospital 2022 opening date
6 days ago

Deal to start 400-home West London build-to-rent scheme

Grainger forward funds further phases at Merrick Place scheme in Southall
6 days ago

Contractor services