A CONSTRUCTION and distribution firm has hailed North-East projects after the work lifted turnover to a record high.

The Clugston Group, which has offices in Stockton and Billingham, saw turnover increase nine per cent to £252.9m for the year to January 31, which was the highest in its 78-year history.

Pre-tax profits stood at £3.3m.

The company’s construction division, based at Stockton’s Teesdale Business Park, saw turnover rise five per cent to £143.3m, helped by work in the waste-to-energy sector, particularly the Sita Sembcorp UK waste-to-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, and supported a scheme to deliver laboratories to Billingham chemical firm Johnson Matthey.

Clugston’s distribution arm, which handles fuels and powders and has a depot in Billingham, saw turnover grow 16 per cent to £15.3m, the highest level for the business in more than a decade.

Stephen Martin, Clugston Group chief executive, acknowledged the strength of the company’s regional operations, which he said provided much scope for further growth.

He added: “The North-East is a strategic base for us, with each of our companies being active in the region.

“While the group operates in highly competitive markets with supply generally exceeding demand, we remain confident for the future and hope 2015 will bring further growth to our North-East activities.

“Our focus on delivering high quality service gives us confidence in our ability to further deliver sustainable profits in the years ahead.”

Mr Martin added Clugston’s facilities management division, which oversees work at Sedgefield Community Hospital and Walkergate Hospital, in Newcastle, remained solid, with its property business also seeing an upturn.

Allied to work on waste-to-energy, Exelby and Johnson Matthey, Clugston’s construction arm has overseen a number of other projects, including the design and build of a new military court centre, in Catterick, North Yorkshire, and an extension at Prior Pursglove College, in Guisborough, east Cleveland.