Construction and residential development firm Cruden Group has exceeded the £200 million turnover mark for the first time as the business recorded an eighteenth consecutive year of profitable trading.
Audited results published today for the year up to 31 March 2017 have revealed an increase in turnover, profit and home sales.
Pre-tax profits hit £10.4m for the year to March from £7.5m last time as turnover increased to £200.6m from £154.2m. The company’s net assets now stand at £43.6m (an increase from £38.8m in 2015), and access to a £9m bank facility remains undrawn.
The number of homes sold by the Group increased from 139 in 2016 to 280, reflecting the greater number of sales outlets this year. Of these homes, 62 were sold through joint ventures compared to 34 in 2016. Whilst the average sales value in 2017 (including joint ventures) was £226,000 (a decrease from £259,000 last year) sales were achieved across a broad price range (£99,000 to £1,300,000) demonstrating the diversity of the Group’s product range.
Construction turnover also grew from £136m in 2016 to £160m – an increase of 18%. Key activity remains the construction and refurbishment of residential housing for clients in the public sector.
Kevin Reid, Cruden Group managing director, said: “I’m very pleased to report that 2017 has been a fantastic year for Cruden, delivering the Group’s highest turnover and profit in its history. To have had eighteen consecutive years of profitable trading is a wonderful achievement, especially against the challenging economic backdrop we’ve had in recent years.
“The Group board is delighted with the strong performance of the business, and we look towards our 75th anniversary next year with optimism. We fully expect our business to continue to grow sustainably in the years ahead.
“In terms of residential sales, business remains encouraging in this area as a result of the suitability and affordability of many of our homes for first time buyers, along with our team’s expertise in providing guidance and support to this market sector. The continued availability of Help to Buy (Scotland) has also been beneficial to our first time purchasers.
“Training and skills development is a key focus within the Group, so it is also fantastic news that we have continued to retain in excess of 50 apprentices on our books – this will provide a pipeline of skilled and talented employees for the future.
“Winning the Queen’s Award for Enterprise as part of the City Legacy consortium was another wonderful moment for the whole team at Cruden Group. I am extremely proud that Cruden continues to be recognised at the highest level for the top quality build projects that we deliver, and also for our excellent team of employees who provide impeccable customer service.
“As a company with CSR firmly at its heart, I’m also proud that one of the Group’s shareholders, Cruden Foundation, has now donated £6m to community based charities in Scotland.”
Key achievements in 2016/17 – Residential Developments
- At the King’s View development in North Toryglen in Glasgow (374 units in total), work is complete on 100 units for rent and the first phase of 55 units for sale has sold out months ahead of schedule. Sales are now ongoing on Phase Two, with only a limited number of units left. This development was voted Affordable Housing Development of the Year in 2016 at the Herald Property Awards, with Cruden Homes also being recognised as Residential Sales Team of the Year.
- At the Helenvale development in Glasgow (237 units in total) sales have also got off to a flying start, with the first phase sold out, and limited availability in the second phase.
- In 2015/2016, the Group delivered 97 highly sustainable apartments and houses as part of the continuing regeneration of Craigmillar. Construction has now commenced on the next phase of this project, with a further 150 units becoming available in due course.
- Demonstrating the breadth of the Group’s activities, at The Grange in Edinburgh, the award-winning Woodcroft development (81 units) sits in one of Edinburgh’s most prestigious residential addresses and consists of 24 luxury three-storey townhouses and 57 executive apartments, including a number of impressive penthouses and this development has been extremely well received by the market – only 1 flat remains available. At the Hydro Gardens development in Peebles (delivered under the Queensberry JV), only 4 homes remain available out of 33.
- Subsequent phases of the popular Raploch and Wauchope regeneration developments are now under construction, and the first of a number of developments in East Lothian is set to commence with 44 family homes and flats at Old Craighall. This will be followed by a much anticipated development of 107 executive family homes in Aberlady.
- Cruden Homes West won Best Family Home for the small/medium family atthe Herald Property Awards 2017 for The Oak house type, which is being sold at both King’s View and Helenvale, Glasgow. Hart Builders, part of the Cruden Group, was also commended in the Affordable Housing Development of the Year category for the Harbour Point development in Edinburgh.
Key achievements in 2016/17 – Construction
- The Group has been appointed as a preferred contractor on the Scottish Procurement Alliance Framework. Through the Framework, Cruden will deliver in excess of 700 units over the next three years on currently identified sites. These appointments include four projects for River Clyde Homes (totalling 237 units), four projects for South Lanarkshire Council (totalling 125 units), seven projects for Eildon Housing Association (totalling 289 units) and three projects for Berwickshire Housing Association (totalling 66 units).
- The continued roll-out of the award winning build solution – Cruden C4S. This solution incorporates off-site prefabrication and component manufacture, producing bespoke building fabric which optimises air quality, saves energy and produces and distributes high efficiency heat.
- The Group is delivering another 146 flats for mid-market rent for the innovative National Housing Trust programme at the Harbour Point development in Edinburgh – this brings the total number under this Scottish Futures Trust initiative to approximately 500.
- The Group’s continued focus on the health and education sectors has also culminated in a number of new projects, including completion of a new care home at Pinkhill at Corstorphine in Edinburgh, and ongoing care home construction at Balcarres Street,and Trinity in Edinburgh, and Mill Wynd, in Haddington. Student accommodation projects have also been delivered in both Glasgow and Edinburgh.
- As part of the City Legacy consortium, Cruden won a Queen’s Award for Enterprise for the hugely successful Commonwealth Games Athletes’ Village, a project which was delivered on budget and on time. Attention is now being turned to Phase 2 of this project.
- The Grouphas trialled and rolled out a highly successful employability programme which provides an intensive three-week training programme targeted at unemployed people who wish to join the construction industry but have no direct experience. Through this initiative, in conjunction with both Dundee City Council and East Lothian Council, Cruden Group has provided opportunities for 14 unemployed people to learn a new semi-skilled trade installing insulation. From those so far 12 have gained full time employment, 10 of which were directly employed by Cruden Group.