FM leads Clugston's growth push

Partnering, PFI and facilities management are the buzzwords at Clugston as the Scunthorpe-based firm drives to boost turnover.

Clugston now accepts lower margins when undertaking projects for client partners because the arrangement offers continuity of workload.

Stewart Tilley, md of Clugston Construction, said: "Clugston has partnership arrangements with clients such as Asda and Whitbread. The certainty that such deals bring means that we can afford to give a discount. We can take lower margins because we know there will be further work.Clugston is a privately owned firm. John Clugston, chairman, is the grandson of the founder and the family are still the major shareholders.The group's construction division contributed œ100 million of turnover last year.

Property Development's turnover was œ2 million, while the third business sector, Industrial Services, had a œ20 million turnover. Profit before tax was œ519,000.

Tilley's push into facilities management will see Clugston's Industrial Services Division's turnover climb to œ30 million within the next couple of years.

Clugston is bidding for Private Finance Initiative schemes, mostly sized between œ5 million and œ15 million. "Beyond œ30 million, the risk is too big for a firm like us," said Tilley.