Last updated 10 March 2021
Clancy Group Plc
Clancy Group Plc was formed in 1958 as MJ Clancy & Sons and initially worked out of Wembley, north London. The group initially focused on ground works, drainage and road works before expanding into other areas such as Tunnelling. In 1974, Clancy bought out gas and water utilities contractor RE Docwra and also moved into development and plant hire.
The group now operates out of Middlesex, employs 2,500 people and turns over around £300 million a year.
Financials
In the 12 months to March 2020 turnover slipped to £292.7 million (2019: £309.0 million) but the group continued to trading in the black after ending two consecutive years of losses in 2019.
At an operating level, Clancy’s profits strengthened to £2.9 million (2019: £1.1 million) but the profit before tax was lower at just under £2.6 million (2019: £0.3 million).
To view the financials for Clancy Group Plc, visit Companies House and use Company ID 03339937.
Operations
Construction
The core civil engineering business operates from a headquarters in Harefield, Dartford, Sunderland and Livingston in Scotland. The group works in the water, energy, infrastructure and traffic sectors and also has a plant hire subsidiary.
Water is the core business and comprises around 70% of group revenue. Clancy has long-term relationships with major utilities in this sector, notably Anglian Water, SES Water, South East Water, Southern Water and Thames Water. Clancy is also part of the Optimise joint venture, which also features Barhale, J Murphy and MWH, which worked on Thames Water’s AMP5 programme on water pipes and sewers in north London and Thames Valley. The group is on a number of long-term framework agreements.
In the energy and multi-utility sector, Clancy has frameworks for Northern Powergrid and UK Power Networks. Work for UKPN includes a place on its £1 billion Capital Delivery Alliance (Project ID: 13389480). This contract involves four companies working from one office in London to refurbish and upgrade electricity substations, cables and power lines over a 12-year period.
In 2018/19, Clancy merged its civil and rail businesses into a capital projects division. Rail is also a core competence but focused in southern England with work for Transport for London and London Underground, London Overground and Docklands Light Railway. Clancy has also worked on Glasgow Underground and helped upgrade the Tyne & Wear Metro.
In 2020, overall turnover from civil engineering and utilities contracting fell back to £290.6 million (2019: £305.7 million).
Clancy Plant Hire
Clancy is one of the UK’s larger plant hirers and services the group’s won needs, working in general and operated plant, transport, mobile communication, traffic management and recycling. To cut fleet and fuel costs, Clancy Plant hire bought a fleet telematics solution from Tracker. In 2020, turnover rose to £38.2 million (2019: £32.9 million) but pre-tax profits slipped back to £0.9 million (2019: £1.0 million).
Clancy Developments
Clancy Developments is the group’s housebuilding arm and has been successfully building new homes for more than 30 years. The business works around London and the Home Counties.
In 2020, all units were completed and turnover from residential property development fell again, dropping to £2.1 million (2019: £3.3 million).
Glenigan data
Clancy did not feature in Glenigan’s ranking of the top 100 contractors by orders in the 2020 calendar year, due mainly to the disparate nature of the group’s activities and a strategy that eschews taking on major lump sum contracts.
Conclusion: Strengthening
The tragic accidental death of chairman Dermot Clancy in September 2019 was a milestone in the evolution of the group, but came after a run of losses was ended and a ‘refresh’ of the board was completed with Matt Cannon taking over as chief executive in late 2018.
Clancy again booked losses on discontinued operations. In 2020, revenue of £9.6 million (2019: £13.1 million) came from discontinued operations and this produced operating losses of £1.7 million (2019: £1.4 million), but a withdrawal from the multi-utility market signalled in 2019 remains the focus. This withdrawal, which includes discontinuing the Docwra name, along with the exit from a contract with Scottish Power weighed on revenue on the latest financial year, which closed just before the worst of the coronavirus pandemic.
With work sagging, a policy of growing the workforce was halted. In 2019, the average number of employees at the group rose 8% but in 2020 Clancy reduced the workforce with the average number of employees reduced by 1% to 2,480 people (2019: 2,506 people) and the wage bill was trimmed to £91.5 million (2019: £91.8 million).
The AMP7 spending round in the water sector should boost turnover and Clancy continues to win places on frameworks in this area including a £30 million agreement set up by Bristol Water (Project ID: 18283764). Clancy is also on the South East Water Network Maintenance framework, which will see spending of £250 million between 2020 and 2025.
Glenigan’s research again shows no detailed planning applications for private residential developments made in 2020 and this does not suggest any major upturn in work this sector. Property development activities have halved in the last two years and progress in 14 units remained unsold at the year with the market described as “patchy”. A separate term loan for developments was reduced from £3 million to £2.3 million in line with facility agreements. However, overall net assets strengthened to £31.5 million (2019: £29.4 million)
Most work continues to be sourced through long-term framework agreements and the order book is £1.3 billion. With spending on the latest AMP7 water utility programme kicking in, profitability should continue to strengthen although the 2021 accounts may see some impact from the worst of the virus, which covered this period.
Winning Work With Clancy Group Plc
Clancy is accredited to a number of industry bodies, including Achilles and CHAS. The group has successfully maintained quality, environmental and safety certification by LRQA to ISO 9001, ISO 14001 and BS OHSAS18001. Clancy uses the IFS application ERP for real-time monitoring of the costs and profitability of specific construction projects.
Key Clancy procurement contacts include:
Clancy head of estimating & bid management – Richard Venison, tel: 01895-823711
Richard.venison@theclancygroup.co.uk
Clancy senior buyer – David Williamson, tel: 01895-823711
David.williamson@theclancygroup.co.uk