For the year to 3rd April 2022, Clancy Group Holdings Ltd grew revenue to grew by 15% to £293m (2021: £255m), to take turnover close to its pre-covid £296m.
Pre-tax profit for the year was £10.6m, which was down on the previous year’s £11.1m but still plenty to support the company’s investment priorities.
Chief financial officer Nick Blaber explained: “The slight fall in profitability seen year-on-year has been driven by challenges on one particular contract. This has been proactively managed and since year-end we have agreed a new collaborative approach with the client to make the contract sustainable for both parties.”
During the year Clancy completed a £43m two-year renewal programme for plant and equipment. It achieved a net cash inflow for the year of £6.3m, strengthening the firm’s ability to operate without borrowings.
Major projects during the year included the delivery of new wastewater infrastructure for Thames Water at Chesterton Farm in Cirencester, as well as the renewal of UK Power Network’s substation at Leicester Square in London’s West End. The year also saw the business continue its work on HS2 utility diversions in various locations.
This pipeline of capital programmes alongside Clancy’s frameworks in the water and energy sectors – clients include Anglian Water, Scottish Water and Northern Powergrid – contribute to a forward order book of £1bn.
Chief executive Matt Cannon said: “We’ve worked hard over the past few years to ensure the long-term success and resilience of our business and are mindful of the headwinds that we, our people and our clients face in the coming months.
“Making sure we have the skills and resource in our business to work brilliantly and safely is of huge importance. Our direct employment model remains a key differentiator for our business and provides a platform for skills and career development long-term.
”Our strategy to operate as smart investors, without borrowing, has put us in a strong position to face the inflationary pressures being seen across construction and infrastructure, as well as the wider economy, and to continue investing in our teams and technology.”
Chairman Kevin Clancy added: “The water and energy sectors are under significant pressure to improve resilience, protect the environment and meet net zero while also managing costs for customers. It will take a collaborative and innovative approach to address these challenges together across the supply chain.
“Since April we have continued to deliver strong results for clients but we are not complacent about the months ahead. As an entrepreneurial and family-led business we have always been quick to adapt to changing market conditions – strengthening our core business while also exploring new opportunities.”
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