Former Clugston CEO on 'heartbreaking' collapse of construction business

Stephen Martin left St Vincent House in 2016 to become Director General of the Institute of Directors

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David LaisterBusiness Editor (Humber)

13:59, 6 DEC 2019
Updated16:51, 6 DEC 2019

Stephen Martin, during his time as chief executive of Clugston Construction. (Image: GrimsbyTelegraph)

Long-serving former chief executive Stephen Martin has told of his shock and sadness at seeing Clugston Construction on the verge of collapse.

Administrators are working with senior managers at the Scunthorpe giant now, with 150 redundancies made.

More than 250 further jobs are at risk, with staff sent home from the £176 million turnover group’s St Vincent House headquarters.

For Mr Martin, who left in 2016 to become director general of the Institute of Directors, it is “heartbreaking” to see.

“I am still taking the news in and it is very hard to believe,” he said. “Clugston is an amazing company with fantastic people and I think it is a really dark day for Scunthorpe. I’m devastated, particularly for the amazing people who work there, it is incredibly sad.”.

In the 10 years prior to his arrival, Clugston was running an average loss of £263,000. When he left it was back in the black with the negative a 10-fold positive, bringing in an average of £2.6 million profit a year.

During his tenure the family business was featured in The Sunday Times Profit Track 100, The Sunday Times Top Track 250, and had been celebrated in the London Stock Exchange’s 1,000 Companies to Inspire Britain report.

Mr Martin has also been recognised personally with several business awards, as well as taking part in Undercover Boss.

“When I arrived it was a company doing okay, but we turned it round and made really good profits in the decade I was there – the best decade in its history,” he said.

Happier times: Clugston Group's 75th anniversary in 2012. Pictured, from left, Clugston's chairman John Clugston, Gyles Brandreth and Clugston's chief executive Stephen Martin. (Image: Chris Vaughan / Clugston Group)

“When I left three years ago there was a really good order book, good contracts, impressive staff with a great work ethic – I’m just scratching my head to understand what has happened.”

He was followed into the role by Bob Vickers, a former Carillion director, who left in June, serving a shade over two years. He was not immediately available when contacted by Business Live.

Mr Martin, now a consultant after two years in the Pall Mall role, said: “I’m hopeful they will be able to survive, move on contracts or sell parts of the business. It has become a group of companies, with logistics, property, facilities management and various joint ventures, and I hope and pray they can salvage some of it and keep people as many people who are employed as possible.

“It is a very dark day or Scunthorpe indeed, this close to Christmas. It is a well established employer, with a great reputation employing fantastic people. It is heartbreaking to read.”

Stephen Martin, former chief executive of Clugston Construction. (Image: GrimsbyTelegraph)

In Scunthorpe, the local authority stands ready to support a major employer.

Clugston had multi-million pound civil engineering contracts with North Lincolnshire Council, as part of a highways framework.

Leader Rob Waltham said an authority-led task force would be available to help affected staff at Clugston.

He said: “We have got our task force in place to help people with CV skills and getting them back into work.”

Of the work it holds, Cllr Waltham said: "They mainly do our highways work and have done for a long time.

"The council has got £7 million to £8 million worth of contracts, which I can go on record as saying because we regularly spend millions of pounds with them every year. We have a number of contracts we are working on now.

"We are in talks with them about £7 million worth of highways contracts and what we have to do is wait and see who acquires the business and whether we want to work with them. If not, we will go to other local providers."