Clancy delivers strong profit growth as margin hits 4.5%

Aaron Morby 1 year ago
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Civils contractor Clancy has delivered strong financial performance and boosted its order book to £1bn after a successful group restructure.

Chairman Kevin Clancy says strategic work done through 2020-2021 and in the years immediately preceding it has ensured the firm has solid foundations in place
Chairman Kevin Clancy says strategic work done through 2020-2021 and in the years immediately preceding it has ensured the firm has solid foundations in place

Rising profitability, with operating margins up to 4.5% from 1.4%, and strong cash flow allowed Clancy to unleash a record capital investment programme.

Around £20m has been invested in plant, equipment and technology to effectively build a platform for long-term growth.

This includes a growing spend on increasing Clancy’s zero-carbon fleet and an ‘electric first’ company car policy.

Despite the pandemic, the Harefield-based firm delivered an £11.1m pre-tax profit in the year to March 2021, up from £3.5m previously, and completing a business turnaround from a £2.8m loss four years ago

Turnover slipped back by 14% to £255m due to both the planned exit from loss-making business and the impact of the pandemic.

The firm, which employs 2,200 people, boosted its order book following a strategic focus on water, energy and wider infrastructure markets.

This summer Clancy opened the way for further expansion securing a new contract with Scottish Water providing repair and maintenance to Scotland’s water and waste water network for up to 12 years.

The expanded framework will help to double the size of Clancy’s operations in Scotland.  While a place on Northumbrian Water’s capital works framework supported a growing presence in the north east of England.

Kevin Clancy, chairman at Clancy said: “We are a family-run business and retain an entrepreneurial spirit which has enabled us to be agile and resilient throughout the challenges of the past year.

“This helped us to stay on track to deliver our long-term strategy, with results that reflect our journey over the last three to four years as much as the most recent twelve months.

“Our model of direct employment and investment in people remains a differentiator at a time when the construction industry as a whole faces significant challenges over the availability of experienced resource.”

 

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