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Home » Clugston Distribution Sees Strong Revenue Acceleration Through Covid ‘catching-Up’ Period

Clugston Distribution Sees Strong Revenue Acceleration Through Covid ‘catching-Up’ Period

Clugston Distribution’s revenues have passed the £20 million mark with a strong rebound from Covid, latest filed accounts have shown.

The Scunthorpe business, bought out of the wider diversified construction group’s collapse by a consortium headed by third generation family member Alistair Clugston, has eclipsed its pre-pandemic turnover in the year to April 2022.

Revenues of £20.4 million were up 58 per cent from £12.9 million in 2021, having seen a fall of 35 per cent in the previous elongated year. That had followed the rescue deal, as the pandemic put the brakes on a strong reset of the Brigg Road operation. As well as catering for a variety of different road freight requirements, Clugston operates a truck dealership and significant maintenance facility under the Renault brand.

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Wren Kitchens becomes a £1b business Sales hit top gear for Peacock & Binnington Outlining how the impact of the £7.5 million leap was unlikely to be repeated in the current year, Mr Clugston said: “It is fair to attribute the increased activity during the year to a significant catching-up period following retractions suffered during the long lockdown periods of the pandemic which resulted in a backlog of transportation. The business has benefited from this backlog owing to the diversity of its logistics solutions, however it would not be fair to assume such rapid growth trajectory in subsequent years.”

Diving into the individual sectors in the strategic report accompanying the recently filed results, Mr Clugston continued: “The bulk food fleet continues to experience growth due to provision of additional services to existing customers following investments in equipment within a sector which will likely benefit from the UK’s impending food security strategy. The flat trailer fleet continues to provide profitable returns servicing a solid customer base with a flexible operating model allowing for opportunities to diversify with sector demands. The liquid tanker fleet continues to maintain a consistent level of activity and is an area in which growth opportunities are currently under review. The commercial vehicle maintenance department has continued to maintain its commitment to the sector with high levels of investment in the apprenticeship scheme through its alliance with a major global truck manufacturer to produce highly skilled technicians to alleviate the skill shortages in the sector. The high-level accreditation dealership status with this global truck retailer continues to be a successful and mutually beneficial relationship driving the business forward.”

The period saw Hull-based abnormal load specialist Trans 2 Logistics Ltd acquired by the business, and while challenges and opportunities were flagged, steady progress to build on existing relationships and expanded connections was underlined.

Mr Clugston said the business had also made a “substantial investment in the provision of personnel within its non-revenue generating departments to strengthen the infrastructure of the business and capitalise on the wealth of, and experience of, its existing team”.

Staff numbers were up from 139 to 169, with an operating loss a shade under £100,000 turned into a £1.1 million profit.

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