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Clugston Group

The Clugston Group was a privately owned business involved in construction and civil engineering, property development and logistics. It was based in Scunthorpe, North Lincolnshire, England. On 5 December 2019, the group and its construction businesses filed for administration, with debts of £64m.

The company has its origins in the business endeavours of Leonard Clugston; in 1922, Leonard established JG Clugston Ltd, which operated as a builders’ merchants, timber, transport, and joinery. Two years later, Leonard was approached with an offer to work one of the slag banks (a waste material produced by the blast furnaces of Scunthorpe’s numerous iron and steel plants) with the intention of using the material in local road construction for the town. He quickly recognised that the material had considerable potential that nobody else appeared to be interest in; accordingly, in 1937, he founded a new company, Clugston Cawood, for the purpose of exploiting it.

The company's early activities centered around its pioneering work in the development and use of recycled slag into various building materials. Amongst other roles, this material was used in the construction of runways for the Royal Air Force (RAF) in the Second World War. The company undertook various civil engineering works throughout the conflict, taking on straightforwarding contracting work for the most part, such as the construction of air raid shelters and anti-glare pits as well as the erection of poles in large fields to stop enemy gliders landing as part of the anti-invasion preparations on the east coast.

Throughout the latter half of the twentieth century, Clugston focused on the construction, transportation, and the provision of bulk services to some of Britain’s largest companies. The company continued to work with various steelworks, both domestic ones and those in France and Germany. Numerous steelworks closed over time, necessitating changes at the firm. While the company's management recognised that the construction sector was particularly vulnerable during economic downturns, it was decided to increasingly orientate towards this sector over its other activities.

Clugston Group was involved in the construction of various public facilities, including schools, hospitals, reservoirs, and supermarkets. One frequent area of business was road construction; it would regularly receive contracts from bodies such as the Department of Transport to build bypasses and other schemes of a similar scale. The firm was also involved in the construction of numerous waste-to-energy plants. It also constructed various offices and factories on behalf of various parties. It also built retail outlets and distribution centres. The company also undertook several projects of an unconventional nature.

In June 2009, the then company CEO Stephen Martin went 'undercover' at the company for the television series of Channel 4, Undercover Boss. Martin described the experience as extremely positive, and implemented a number of new measures as a result.

During the late 2000s, business activity dipped, which was attributed to the unfavourable economic consequences of the Great Recession; the company responded with 200 redundancies. By 2013, Clugston Group had apparently reversed its fortunes, having achieved record profits along with a 30 per cent rise in turnover. Further revenue growth occurred during subsequent years.

In February 2017, Martin left to become director general of the Institute of Directors, and was replaced by Bob Vickers (formerly a director of Carillion Construction Services). Vickers resigned as CEO in June 2019; Glynn Thomas became interim CEO.

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