UK-based Clugston Construction has gone into administration today meaning yet another builder of energy-from-plants has hit the financial rocks.
KPMG has appointed as the administrator and said that “regrettably” 150 of Clugston’s 412 employees had already been made redundant. Clugston Group Limited and Clugston Construction Limited and Clugston Services Limited are now in the hands of KPMG.
A spokesperson for KPMG said: “The businesses have suffered as a result of losses on a number of large and complex EfW contracts, accentuated by the insolvency of a key subcontractor.
“Despite negotiations with key stakeholders to resolve issues caused by the losses, mounting pressures on the business have caused the directors to seek the appointment of administrators.”
The administrators said the company will continue to “trade certain divisions” and is “seeking to sell” valuable contracts, with 262 members of staff retained to assist with this.
There was little warning that Clugston was in financial difficulties before the news broke today. Although, it did reveal falling turnover in 2017 which it had described as a “challenging” year.
When fellow UK construction firm Interserve went into administration in March, it followed years of problems connected to a series of delayed EfW and waste wood-fired plants.
Clugston partners with France-based CNIM and has developed a series of EfW plants with fewer reports of issues than Interserve was dealing with.
Only in March, the pair won the contract to build the Earls Gate Energy Centre (EGEC) EfW plant, owned by Edinburgh-based Brockwell Energy. The plant is due to be open in 2021, but it is too early to know if the administration will affect that date.
ENDS previously reported the pair were due to hand over the Parc Adfer EfW to US-based Wheelabrator Technologies next week. Wheelabrator had also struck a deal with Clugston and CNIM in 2016 to build its Kemsley-based EfW plant.
Another UK EfW plant builder, Lagan Construction Group, went into administration last year. It was working on Viridor’s Beddington EfW plant at the time, which is still not fully completed.