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Clancy reports solid performance against backdrop of infrastructure investmentGeneral
Clancy maintained its solid growth trajectory for a fourth consecutive year in the twelve months to 3 April 2022, as the business continues to invest in skills and plant to support its infrastructure clients – and prepares to navigate headwinds in the economy.
Revenue grew by 14.8 per cent to £293.0m, as activity across Clancy’s core water, energy and civil engineering markets rebounded following the pandemic.
Pre-tax profit for the year stood at £10.6 million, supporting a series of longstanding investment priorities for the family-run contractor that include completing a £43m two-year renewal programme for plant and equipment. Clancy achieved a net cash inflow for the year of £6.3m, further strengthening the business’ financial resilience and ability to operate without borrowings.
Major projects for the business over the twelve months include the delivery of new wastewater infrastructure for Thames Water at Chesterton Farm in Cirencester, as well as the renewal of UK Power Network’s critical substation at Leicester Square in London’s West End. The year also saw the business continue its work for a series of joint ventures with HS2 on essential utility diversions and connections along the route of the new railway.
This pipeline of capital programmes alongside Clancy’s longstanding frameworks in water and energy, including for Anglian Water, Scottish Water and Northern Powergrid, contribute to a forward order book of £1billion.
The independent contractor has also donated £100,000 through the Clancy Foundation – a charity established last year – to a range of causes chosen by the board of trustees and wider Clancy employees in line with the business’ mission to make life better for the UK’s growing families.
Matt Cannon, Chief Executive, said that the strong performance over the prior year would help provide stability for clients and employees in what is likely to be a challenging period:
“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.”
Kevin Clancy, Chairman at 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.”