A CONSTRUCTION and distribution firm has hailed its resilience after posting a £1m profit increase.

Clugston says it has overcome “challenging markets” and a number of delayed projects to remain in a robust financial position.

The business, which has bases in Stockton and Billingham, recorded annual turnover of £118.2m in the 2016-2017 financial year, on the back of a £1m pre-tax profit.

Although its turnover figure was down 18 per cent on the £143.4m achieved in the previous 12 months, bosses say the company remains in a strong position to strengthen its industry standing.

According to its results, the business’ construction division netted turnover of £101.6m.

However, officials say the operation will soon benefit further from a lucrative contract to build a second supermarket for budget operator Lidl in Norton, near Stockton, and work on Stockton’s North Tees Energy Centre Project at North Tees Hospital.

Its distribution division, which handles fuels and powders and has a depot in Billingham, had turnover of £16.1m, with operating profit down marginally by £200,000, which bosses say reflected challenging trading conditions.

Analysing the figures, Bob Vickers, chief executive, said the company was well placed to grow.

He said: “While a challenging year, primarily due to delayed projects, our strong results are a reflection of the quality of our people across the group.

“We have delivered another strong financial performance, with solid profitability, substantial cash balances of £18m and no bank borrowings.

“The forward direction of the group will continue to focus on key relationships with our customers, thereby ensuring we maintain standards of service that exceed expectation to further reinforce the reputation Clugston has built over 80 years of trading.

“We remain very positive about the opportunities to grow the business and with a forward order book already secured sufficient to generate a turnover in excess of £170m this current term, we are well positioned to capitalise on the growth potential in our target markets, with a substantial pipeline in place for the following years.”

The business previously revealed its construction division was helped by work on the Sita Sembcorp UK wasteto- energy plant, in Wilton, near Redcar.

It also oversaw a project to build the £4.2m Exelby Services truck-stop and petrol station, on the A1 at Leeming, in North Yorkshire.