Civil engineering contractor Clancy Group has posted annual results showing growth in both revenue and profits.
The water industry is where Clancy does much of its work
For the year to 2nd April 2023, Clancy Group Holdings achieved record revenue, up 14% to £334.5m, and grow pre-tax profit by 27% to £13.5m (2022: £10.6m).
The year also saw the family-owned company continue to build its cash position, with net cash inflow of £14.7m, and operates entirely without borrowings.
Spending on systems and plant is expected to be in the region of £20m during the current 2023/24 year, it said.
Clancy has now seen revenue growth for five consecutive years and says that the outlook remains good. This month it was selected for South West Water’s capital delivery framework and booked a five-year contract extension to support Thames Water’s capital programme for the AMP8 regulatory period.
In the energy sector, Clancy is expanding its support in capital planning and delivery for the ED2 price control period for clients including UK Power Networks.
This pipeline of new and continued capital projects and long-term frameworks contribute to an expected forward order book of £1.5bn, of which £800m has been secured since April.
“As we look to 2024, we continue to work hard to deliver our business plan and to support our clients’ ambitions in infrastructure. In this we have been rewarded by investment that we continue to make in technology and training, ensuring that our people have the tools and skills they need for the future.
“The coming year will not be without its challenges, as we prepare for AMP8 in the water sector and to accelerate the decarbonisation of our energy grids. However, with a strong pipeline of investment across infrastructure networks and new programmes, we remain well-positioned for future success.”
Chairman Kevin Clancy added: “Though the UK has so far avoided a recession, inflation and low economic growth will remain a concern for the construction and infrastructure markets.
“Whether it is through repairing wastewater networks, diverting utilities to support transport infrastructure, or building the new energy connections for net zero, clients are looking to us for fresh ideas and support. It gives me a lot of pride to see our teams tackling the challenges we’re facing with innovative approaches, working collaboratively to continuously improve delivery.
“This entrepreneurial spirit, our stable financial performance and our strategy to operate without borrowing put us on strong footing to continue to support UK infrastructure in the year ahead.”