Scunthorpe construction group call in administrators

Mon, 09 Dec 2019 | ADMINISTRATION

Scunthorpe-based Clugston Group and Clugston Construction have gone into administration, appointing KPMG. James Clark and Chris Pole from KPMG’s restructuring division will act as joint administrators.

The group’s finances from January 2018 showed 49 per cent year on year growth and a turnover of £176 million, with the construction arm having a turnover of £158 million. However, those accounts also showed the group making a pre-tax loss of £469,000, while Clugston Construction had an operating loss of £529,000.

Clugston Group operates from over 25 sites, largely across the North and Midlands, with different divisions focused on construction, civil engineering, logistics, property development and facilities management. Clugston Distribution Services Limited and Clugston Estates Limited are not affected by the administration and will continue to trade.

The company employs 412 staff, 150 of whom have now been redundant with the remaining 262 retained to assist in the administration process.

The group had recently generated growth through its joint-venture with French firm CNIM, which saw the company engage in high-value contracts building waste-to-energy plants.

Clugston Group CEO Bob Vickers left the company in June of this year and was replaced on an interim basis by corporate rescue specialist Glynn Thomas.

In a statement, KPMG said: "The joint administrators will continue to trade certain divisions and are seeking to sell valuable contracts, with 262 members of staff retained to assist with this. Any interested parties should get in touch with KPMG as soon as possible."

Joint-administrator James Clark added: "Our focus over the coming days will be to seek buyers for the contracts and divisions and to liaise with those employees who have been made redundant, ensuring they are provided with the support and information they need to claim their statutory entitlements from the Redundancy Payments Office."

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