Specialist utilities contractor Clancy Group is reporting a strong performance underpinned by long-term resilience, according to its latest set of annual results published today.

The Group 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.

According to Clancy, stable profits, a strong cash position and a secure forward order book will ensure is well-positioned to weather the Covid-19 crisis.

The growth follows a strategic review that has seen Clancy refocus on long-term frameworks within water and energy, enabling the business to build a £1.3bn secure order book.

Within the water market, the financial year has coincided with the start of the new Asset Mangement Period in England – AMP7 – from 1 April. 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 business 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.

The year saw Clancy continue a managed exit of loss-making legacy contracts and progress towards the disposal of its multi-utility business which is expected to complete in the current financial year. The results for the year includes losses on discontinued business activities of £1.7m.

Clancy said that stable income had enabled it to establish a strong cash position, using a net cash inflow of £16.2 million over the year to cover the vast majority of its working capital needs – thereby operating with minimal debt or borrowing.

2019 saw a transition to the third generation of the Clancy family with Matt Cannon appointed as Chief Executive in February.

Matt Cannon, Chief Executive at Clancy said that the business focus on long-term, sustainable growth would stand it in good stead to withstand the current economic challenges posed by Covid-19, commenting:

“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.”

Kevin Clancy, Chairman, 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.

“At the end of last year we were shocked by the untimely death of our joint Chairman, my brother Dermot Clancy. Having spent his life working in the family business Dermot played a central role shaping the exceptional team and operations that we have in place today.”

On 30 June the shares of The Clancy Group Ltd and Clancy Plant Ltd were transferred to a new company, Clancy Group Holdings Ltd (Clancy). The figures have been consolidated to reflect this new ownership.

Working across major frameworks and alliances in water, energy and capital investments, the business is one of the UK’s largest privately owned, independent contractors.