Clugston falls into administration

Clugston

December 06, 2019 – Clugston Group is filing for administration, with insolvency practitioners from KPMG expected to take over the company’s affairs from today.

The Grimsby Telegraph reports that more than 250 Clugston employees face losing their jobs just before Christmas as administrators.

Clugston’s latest filed accounts, for the year to January 2018, show 49% year-on-year growth to £176m turnover but the company made a pre-tax loss of £469,000.

Chief executive Bob Vickers left the family-owned company at the end of June 2019 after two years in the job – he was previously a director of Carillion Construction Services and was recruited to replace Stephen Martin who left to become director general of the Institute of Directors.

After Mr Vickers left, corporate rescue specialist Glynn Thomas was brought in as interim chief executive. His other clients have included The Hospital Company (Liverpool) Ltd, the former PFI developer of the Royal Liverpool Hospital, who brought him on board last year after the collapse of Carillion left the project stranded.

Chairman John Clugston, whose father Leonard started the business in 1937, was set to retire on 31st January 2020 after 35 years in the post. Son David Clugston was set to take over.

Much of Clugston’s growth in recent years has been on the back of high-value contracts building waste-to-energy plants in joint venture with French process engineer CNIM. It is a market that has burned bigger construction contractors, with both Costain and Interserve incurring heavy losses from the sector before withdrawing.

Source:-https://www.theconstructionindex.co.uk/news/view/clugston-falls-into-administration

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