Despite economic uncertainty caused by the Covid-19 pandemic, Clancy says it has stable profits, a strong cash position and a secure forward order book
Clancy, which employed 2,500 over the year, has announced profits before tax of £3.5m for the year to the end of March, up from £1.3m in 2019, with a turnover of £297.1m, despite the Covid-19 pandemic.
Clancy undertook a strategic review that saw it refocus on long-term frameworks within water and energy, enabling the business to build a £1.3bn secure order book.
The company has dropped the Docwra name from its contracting business as part of a new five-year plan for the civils group.
The water and energy sector
Clancy has extended or renewed all its existing frameworks with Thames Water, Anglian Water, Southern Water, South East Water and Sutton and East Surrey Water into the new AMP.
Last month the company also announced it has secured a place on Thames Water’s capital framework for infrastructure works, which will run until 2025.
In Scotland, Clancy is continuing its work with Scottish Water ahead of the new asset management period, SR21.
In the energy sector, Clancy has been reappointed to UK Power Network’s ED1SON alliance for capital programmes in the capital and has extended its partnership with Northern Powergrid to deliver repair and maintenance for the energy network in the North East.
The 2019 financial year also saw Clancy increase its work in capital projects. It undertook utility diversions to support HS2 and supported sustainable greenhouse projects in East Anglia with Low Carbon Farming.
Clancy has also continued to invest in new plant and traffic management services over the twelve months, including through the expansion of its Clancy Traffic division.
The stable income from these projects has enabled Clancy to establish a strong cash position, despite Covid-19, using a net cash inflow of £16.2m over the year to cover most of its working capital needs, operating with minimal debt or borrowing.
The resilience of the industry
Matt Cannon, chief executive at Clancy, said: “These results demonstrate the strength of our model as a business, building long-term, stable partnerships.
“The work of our teams in the last few months to maintain essential networks through the Covid-19 pandemic has demonstrated the resilience of the industry and the vital role that we play.
“Importantly, we remain a people business focused on providing for the many families and communities that we support.
“Our direct delivery model, combined with a strong financial position, drives us to invest in skills and innovation that we need for the future.”
Chairman, Kevin Clancy, added: “The fundamentals of our business rely on expertise within our markets and strong relationships, often going back decades.
“As a family business, our independence ensures we can focus on these core principles to deliver an exceptional service for clients and their own customers.”