Clegg Construction edges back into profit

Clegg Construction has edged back into profit after £3.1million loss in 2022, following its latest financial results.

Revenue for the year ended 31 December 2023 increased seven per cent to £77 million, up from £71 million in 2022, generating a pre-tax profit of £327,361.

In 2022, the employee-owned contractor suffered a pre-tax loss of £3.1 million. 

The company claimed strong trading through 2023 was held back by the completion of remaining fixed-price contracts secured in earlier years, “which had been affected by external factors that exerted unavoidable pressures on the cost of work and supply chain resources.”

The Nottingham-based contractor said in the statement: “These final challenging projects had a cost base from 2020 and included student accommodation, care and residential projects and had been affected by market pressures throughout, including subcontractor failures.” 

The company said, however, that with a focus on negotiated and repeat business tendering, as well as selective supply-chain procurement, it has generated a pipeline of well-performing contracts trading through 2023, 2024 and into 2025.

This pipeline of projects, it said, has been secured from a number of sectors providing resilience in the supply of work and funding streams.

These include: defence, education, residential, care, leisure and commercial with values ranging from £5 million to £35 million. 

Clegg’s results follow, the company’s managing director Simon Blackburn announcing his retirement in January.

With the company’s commercial director Michael Sims stepping up to the role, the change in leadership comes as Clegg announced its strongest forward order book with more than £82 million secured turnover for 2024. 

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