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

Government plan to ban poorly performing firms advances

Firms with a track record of poor delivery, fraud or corruption will be blocked from winning public contracts
5 hours ago

Construction output shows fastest rise in four months

Commercial sector leads the way as buyers report strong industry rebound in November
8 hours ago

Energy prices to drive second wave of materials cost hikes

Arcadis predicts further brick, glass, cement and concrete price hikes in 2022
12 hours ago

Go-ahead for £180m Milton Keynes tower scheme

Work set to start next year on central Milton Keynes landmark scheme
12 hours ago

Fit-out firm BW forecasts return to growth next year

South east contractor predicts workload recovery next year
10 hours ago

Builder jailed after demolishing wall on colleague

Court imposes prison sentence for gross negligence manslaughter
12 hours ago

Union officials face new probe into blacklist collusion

Unite gathering evidence for QC-led inquiry
11 hours ago

University to offer courses in concrete road repairs

New generation needed as 60% of concrete specialists set to retire in next ten years
11 hours ago

HS2 launches first Midlands TBM

BBV launches Dorothy on first one-mile long bore in Warwickshire
4 days ago

Construction slavery gang busted – five convicted

Romanian victims were promised £50 a day to work on site but were saddled with false debts
4 days ago

New chief named for O’Connor Utilities group

Michael Hughes was formely chief financial officer at Issa brothers owned EG Group
3 days ago

Multiplex aims for woman-led teams at one in 10 projects

Social equity manifesto to tackle lack of female leadership, excessive hours and slow payments
3 days ago

Trio shortlisted for third £115m A9 dualling project

Balfour, Graham and Wills Bros in chase for 9.6km Tomatin to Moy dualling
4 days ago

Plan for £2bn Edinburgh West Town

7,000 homes plan for 200-acre site in West Edinburgh
4 days ago

Morgan Sindall starts £31m Leeds resi scheme

Work starts on 16-storey stepped Springwell Gardens apartment block
4 days ago

Race starts for £200m M5 Junction 10 Improvements

Cheltenham junction upgrade will see new roundabout built above the motorway
4 days ago

New boss at Balfour Beatty Kilpatrick

Will Smith joins from consultant Cummins
4 days ago

Contractors battle Storm Arwen to replace rail bridge

BAM Nuttall, Atkins WSP Joint Venture successfully completes marathon 78-hour installation
4 days ago

Bids called for £835m South London council estate upgrade

London Borough of Southwark is on the hunt for four firms to deliver housing estate upgrades
4 days ago

Willmott Dixon to build £21m net zero Preston school

Tarleton Academy will be net zero in operation
4 days ago

Veteran pair leave Currie & Brown

End of an era as David Broomer and Euan McEwan retire
4 days ago

Balfour Beatty launches neurodiverse site cabins

Cabins adapted for visually impaired and light-sensitive builders will become standard on Balfour sites
5 days ago

26 firms win £7bn schools framework – full list

B&K, Willmott Dixon, BAM, Kier and Wates chalk up both northern and southern major project lots
6 days ago

French specialist Matière to install HS2 cut and cover tunnels

Stanton Precast wins pre-cast segment deal for 'green tunnels'
6 days ago

Scottish house builder buys rival for £56m

Springfield buys Tulloch Homes to expand presence in the Highlands
5 days ago

Wates wins contract for underground houses

Construction to start next year on earth sheltered homes in Battle, East Sussex
6 days ago

VAT dodging electrician banned for five years

Company director barred after Insolvency Service probe
6 days ago

£11m in extra brownfield grants awarded – list

Twenty-three sites receive brownfield funding in second tranche of grants
6 days ago

GMI lands £30m helicopter logistic hub

Building work starts on Yeovil hub for manufacturer Leonardo
6 days ago

HS2 Euston team to get architect-designed site huts

Up to 2,500 workers and 150 students could be using the welfare facility on a daily basis
6 days ago

Contractor services