Clancy chief executive Matt Cannon highlights the firm’s strategic focus on nurturing client and supplier relationships rather than chasing revenue growth.
- The construction firm’s revenue climbed to £378.5m, with pre-tax profits reaching £20.9m.
- Repeat work in water and energy infrastructure has been secured through effective risk-sharing strategies.
- ISG’s collapse serves as a reflective point for Clancy, emphasising the importance of supply chain resilience.
- Cannon advocates for a clear government investment strategy in tomorrow’s Budget to aid long-term workforce planning.
Clancy’s chief executive, Matt Cannon, has underscored the company’s strategic emphasis on fostering robust relationships with clients and suppliers instead of focusing on revenue growth. Speaking to Construction News, he stated, “As a private, family-owned business, we’re absolutely not focused on top-line revenue growth.” Rather, the aim is to ensure effective delivery for clients and maintain skill capabilities while balancing acceptable risk levels.
Clancy, a company with a civils focus, was ranked 57th on the CN100 list of top contractors, demonstrating significant financial progress. Their turnover for the year ending 31 March 2024 reached £378.5 million with a pre-tax profit of £20.9 million, marking increases of 13% and 55% respectively. This substantial progress is attributed to successful client negotiations, particularly regarding risk-sharing, which has facilitated repeat business in crucial sectors like water and energy infrastructure.
In light of recent industry events, such as ISG’s collapse, Cannon reiterated the importance of rigorous financial health checks within the supply chain. He highlighted the necessity of regular “360-degree conversations” to gauge supply chain resilience, especially concerning payment terms and cash flow discussions. These efforts aim to fortify Clancy’s operational capacity amidst market volatility.
The collapse of ISG also presents a potential opportunity for Clancy to absorb skilled workers, aligning with Cannon’s belief in sector-wide support for displaced talent. He expressed the need for the industry to rally together to provide alternative employment options.
Looking towards future infrastructure growth, Cannon stressed the importance of a stable investment environment to support the development of a skilled workforce capable of executing ambitious infrastructure projects. He anticipates that government initiatives encouraging training and skill investments will be crucial, especially as the sector braces for significant growth potential.
Clancy’s commitment to relationship-building and strategic risk-sharing positions it well for future success amidst industry challenges.
