Clugston Group
| File:Clugston Group logo.svg | |
| Company type | Private |
|---|---|
| Industry | Construction |
| Founded | 1937 |
| Defunct | December 2019 |
| Headquarters | Scunthorpe, Lincolnshire, England, United Kingdom |
Key people | John Clugston (chairman) Glynn Thomas (interim CEO) |
| Revenue | circa £175 million p.a. |
Number of employees | 629 |
| Website | www.clugston.co.uk |
The Clugston Group operated as a privately held enterprise specializing in construction, civil engineering, property development, and logistics. Headquartered in Scunthorpe, North Lincolnshire, England, the group along with its construction divisions entered administration on 5 December 2019, carrying liabilities amounting to £64 million.
History
Established by Leonard Clugston, the origins trace back to 1922 with the foundation of JG Clugston Ltd, initially a builders’ merchant and timber supplier. Expansion occurred in 1937 through the creation of Clugston Cawood, aimed at utilizing slag—a byproduct from nearby blast furnaces—as a material for road building.
The company’s early operations were notable for innovatively using recycled slag in construction materials, including the development of RAF airfields during World War II. Their civil engineering contributions extended to projects such as air raid shelters and anti-glare pits, supporting wartime infrastructure efforts.
During the latter part of the twentieth century, Clugston provided construction, transportation, and bulk handling services to prominent British and European steel manufacturers. As the steel sector contracted, the business strategically pivoted toward construction activities, recognizing its critical role despite economic fluctuations.
Clugston Group secured numerous contracts for public infrastructure including schools, hospitals, reservoirs, and retail supermarkets. It frequently obtained road-building projects commissioned by agencies like the Department of Transport, delivering bypasses and related infrastructure. The firm also developed expertise in constructing waste-to-energy facilities and was involved in creating offices, factories, retail units, and distribution warehouses for diverse clients. Among its distinctive undertakings were large-scale timber constructions and the £1.2 billion Lincolnshire Lakes development.
In June 2009, CEO Stephen Martin featured on Channel 4’s Undercover Boss, after which operational enhancements were implemented based on insights gained.
The economic downturn triggered by the Great Recession resulted in approximately 200 job losses; however, by 2013 the company reported record-breaking profits alongside a 30% rise in turnover. This growth trajectory persisted in subsequent years.
Stephen Martin departed in February 2017 to assume leadership of the Institute of Directors, with Bob Vickers—formerly a director at Carillion—taking over as CEO. Vickers resigned in June 2019, leading to Glynn Thomas’s appointment as interim chief executive officer.
Administration
On 5 December 2019, Clugston Group Ltd, along with its subsidiaries Clugston Construction Ltd and Clugston Services Ltd, submitted a notice to appoint administrators from KPMG. The group, which operated from over twenty-five locations primarily in the Midlands and northern England, had liabilities exceeding £40 million, later updated to £64 million. Around 250 employees were immediately at risk of losing their jobs. The collapse was attributed to difficulties with waste-to-energy contracts and a severe cash flow crisis, exacerbated by the failure of a principal subcontractor in June 2019, resulting in substantial financial demands from suppliers.
Out of the total workforce of 629, approximately 400 were engaged in construction; by 9 December, about 150 redundancies had been made. By 7 January 2020, the number of layoffs increased to 280, while 15 employees on facilities management contracts were transferred to new employers, and 51 staff members were retained to assist the administrators.
Clugston had grown through collaboration with the French company CNIM in developing waste-to-energy facilities—projects that also caused financial strain for other UK contractors such as Costain and Interserve. CNIM took on sixty-seven former Clugston employees involved in joint ventures within the UK.
Operations
The group was structured into five main divisions:
- Construction
- Facilities management
- Logistics
- Private Finance
- Property
The administration initiated in December 2019 mainly impacted Clugston’s construction division. In January 2020, Clugston Distribution Services was acquired by AJWG, a company based in Leicester. The property arm, Clugston Estates, continued operating until it entered administration on 3 February 2020.