Clancy Delivers Strong Profit Growth as Margin hits 4.5%

Civils contractor Clancy Dowra 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.”

Trio shortlisted for £370m HS2 Birmingham Interchange station

HS2 has shortlisted three bidders for the £370m contract to build a major Interchange Station in Solihull.

The contract, which will be awarded next year, is set to support 1,000 jobs, creating a major economic boost for people and businesses in the Midlands.

Interchange Station bidders

  • Laing O’Rourke Construction
  • Skanska Construction UK
  • Unity – a joint venture between Sir Robert McAlpine and VolkerFitzpatrick, supported by consultant WSP

HS2’s Stations Director Matthew Botelle said: “This is a major milestone in the delivery of our HS2 stations. We’re looking forward to working with the winning bidder on our award-winning designs, to build a world class, eco-friendly station that will play a major role in helping us deliver Britain’s new low-carbon railway.”

HS2 has worked with multi-disciplinary design team Arup to design the station to be net-zero in operation.

Also, it is the first railway station globally to achieve the BREEAM ‘Outstanding’ certification at the design stage putting it in the top 1% of buildings in the UK for eco-friendly credentials.

The design maximises natural daylight and ventilation, with the station roof capturing and reusing rainwater.

Energy-efficient technology will also be incorporated, such as air source heat pumps and LED lighting.

The winning bidder of the contract will develop the detailed design of the station before construction begins and the station takes shape over the next few years.

Enabling work for the 150 hectares site on a triangle of land formed by the M42, A45 and A452 has involved construction of modular bridges over the M42 and A446, and remodelling of the road network in the area.

Wider growth plans around the site, being led by the Urban Growth Company, will support 30,000 jobs, up to 3,000 new homes and 70,000m2 of commercial space.