Clancy is set to begin 2024 in a strong position for further growth, with the family-run contractor reporting solid financial performance alongside significant new contract successes across the water and energy sectors.
The infrastructure specialist has reported a fifth consecutive year of growth in the twelve months ending 2 April 2023, with the firm benefitting from its investment in plant and skills to support clients against a backdrop of high inflation and industry labour shortages.
The independent business achieved record revenue, up 14 per cent to £334.5m, as major capital expenditure in infrastructure has driven work in Clancy’s core markets of water, energy and civil engineering. Pre-tax profit reached £13.5m.
The year also saw the company continue to build its cash position, with net cash inflow of £14.7m. The business operates entirely without borrowings, ensuring resilience against high interest rates and with a strong balance sheet to support reinvestment. Spending on systems and plant is expected to be in the region of £20m through the 2023/24 year.
Alongside these strong results, the business has seen further successes in the first six months of the current financial year, including a number of significant client wins which will support future growth. This month the business announced its appointment on South West Water’s capital delivery framework, and a five-year contract extension to support Thames Water’s capital programme for the AMP8 regulatory period.
Comparable successes are also being seen within the energy sector, where the business is expanding its support in capital planning and delivery for the ED2 price control period with existing clients including UK Power Networks, while also building out its expertise in other regions as district network operators invest to support the clean energy transition.
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 was secured at year end, providing Clancy with the confidence to reinvest in its people, plant and systems.
The business has maintained its focus on direct employment and training through the year. 1,800 employees received a cost-of-living payment of £500 at the end of 2022 to support Clancy colleagues and their families with the impact of inflation.
Through the Clancy Foundation, the business has also donated £100,000 this year to charitable causes, chosen by employees and the board of trustees, which make a difference to the communities they serve and to the construction industry at large.
Matt Cannon, chief executive, said:
“The 2022-23 year has been one of the best in our 65-year history in terms of the scale, value and success of our delivery for clients. We’ve kept up this momentum through 2023, maintaining our growth trajectory with new appointments alongside longstanding relationships.
“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.”
Kevin Clancy, chairman at 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.”