黑洞社区

Last month the 15 academies framework contractors were invited to a meeting in Whitehall. Once there, they were told that the framework might get busier than expected, because the government was trialling it as a fast-track procurement route for schools to replace the scrapped 拢55bn 黑洞社区 Schools for the Future programme, writes Andrew Hankinson.

No doubt eyes around the table lit up. The lucky companies include Balfour Beatty, Carillion, Kier, Sir Robert McAlpine, Willmott Dixon - and Clugston, a Scunthorpe firm that is by far the smallest of the bunch.

You may know Clugston.

It appeared on Channel 4鈥檚 Undercover Boss last year, when chief executive Stephen Martin went incognito on the firm鈥檚 construction sites. A follow-up show was filmed last month, to find out how things had gone since the first programme.

So how had it gone? Not great. Like many construction firms, Clugston鈥檚 turnover has fallen off a cliff. Its construction division had a turnover of 拢123m in the year to 31 January 2009. In the year to 30 January 2010, it had dropped 42% to 拢71m.

鈥淚f you look at other companies, their turnover dropped the same didn鈥檛 it?鈥� asks Steve Radcliffe, the 55-year-old managing director of the construction division (pictured). 鈥淎nd we came off the back of a record year, but the year before we were at about 拢90m. If a 拢20m or 拢30m contract moves from one year to another, that has a fairly significant impact on our turnover.鈥�

Although the firm found 拢295,000 of profit from construction in the year to January 2010, Radcliffe says profit will be 鈥渕uch more difficult this year鈥�. He predicts that turnover will be 拢60-拢70m, which means 35 of its 200 employees will be made redundant over the next month.

鈥淲e鈥檝e picked up half a dozen jobs in the last couple of months worth around 拢12m in total,鈥� says Radcliffe. 鈥淭he largest out of that lot is 拢4m - two years ago we鈥檇 have been expecting some bigger contracts. We were preferred bidder on a college in Scunthorpe worth 拢35m, but that fell through owing to the ending of the Learning and Skills Council programme.

鈥淚nstead, we鈥檙e doing well in energy-from-waste contracts. We did a 拢30m scheme in Sheffield with French process contractor CNIM in 2006. Now we鈥檙e preferred bidder for five more,
all between 拢30m and 拢40m. None have happened this year, but we鈥檙e fairly confident one will happen in the early part of next year.鈥�

Then there鈥檚 that academies framework, which suddenly looks like providing a lot more bounty. No doubt the government鈥檚 decision has disappointed Skanska and Laing O鈥橰ourke, neither of which is on the list. Yet neither firm has approached Clugston looking for a back-door route on to the framework, according to Radcliffe.

鈥淚 don鈥檛 see why we would contemplate that,鈥� he says.

鈥淲e were delighted to get on it and we think there is a place for an established regional contractor in any framework. We鈥檇 like to think there was something coming from it.

鈥淚t鈥檚 my understanding that we鈥檙e waiting to find out if 75 academies will be approved for funding. There will be a fair old tussle to see who gets them and all the big boys will be looking for them. If we can get one that will be terrific, but if not we鈥檒l take whatever is on there.鈥�

Clugston in numbers

拢1.5尘 pre-tax profit for year to January 2010
拢5.3尘 cash in bank at end of January 2010
20 jobs on site
72 - the age of owner John Clugston
拢170尘 order book in waste sector. It has already completed a Sheffield scheme for CNIM