Clugston feels pressure of tough trading sector

The Scunthorpe-based contractor’s annual report revealed it suffered a pre-tax loss of £4.4m for the year to the end of January 2011 compared to a profit the previous year of £1.5m. Turnover fell from £86.7m to £65m.

However, chief executive Stephen Martin told the Yorkshire Post that trading conditions were starting to improve in 2011 as it focuses on strengthening its reputation in the energy from waste sector. Although it made about 60 redundancies in 2010, it is building up its team again and has taken on 50 permanent staff in the last month alone due to new orders.

Clugston, which employs over 600 staff, has already started work on two energy-from-waste contracts, is waiting for notice to proceed on a third and is preferred bidder on four further schemes.

Mr Martin said: “Our turnover and profitability were hit last year as a result of a number of projects being delayed.

“However, we have picked up a lot of work during the second half of 2011 and the issue now is manning to cope with it all.”