Docwra turnover up 14%

The newly emerged market for multi-utility provision has given utility contracting specialist Clancy Docwra a useful boost to its turnover, up 14% in the last financial year to £125m.

The group has recently completed a £15m multi-utility contract on the King's Cross Station redevelopment and is following this up with similar undertakings on a £2m redevelopment in Exeter and a £1m scheme in Scotland.

Joint managing director Kevin Clancy said: "Project managers find it is simpler for one utility contractor to do all the necessary work."

Clancy Docwra's results (12 months to 31 March) show pre-tax profit ahead by 17% at £2.6m.

Acquisition forays by main contractors such as Alfred McAlpine and Balfour Beatty has seen a shift in the structure of the UK market for utility service providers. Clancy said that he has no intention of allowing his family-run business to lose its independence.

"There is a critical mass you must have these days to be a utility contractor and I guess you'd have to be running at a figure of £80m to provide the sort of national service that is now required," he said.

"Some clients like the independents and say they want them in the market. They don't want to be in a position of feeling that they have a restricted choice.

"McAlpine and Balfour have said they look to make margins of 5% in this market. Our target is a 3% figure. I'm pleased that we're running at 2% plus, but realistically that figure should be 3%."

Clancy Docwra has 1,700 employees and invested 30,000 man-hours in training last year.

The water sector has been particularly busy and Clancy expects this to increase as water utilities formulate their plans for AMP4, their next five-year infrastructure investment period.

"There's going to be a lot of water leakage work in AMP4 and we're hoping to pick up a boost in our workload as a result," said Clancy.

"We're talking to six utilities, including one new potential client," he said.