Cruden Group

Construction output grows for 17th consecutive month

office_for_national_statisticsOutput in the construction industry increased by 0.7 per cent in October 2014 compared to the same period last year, continuing its year-on-year growth for the 17th consecutive month.

Latest construction industry figures from the Office for National Statistics (ONS) showed that new orders in Q3 2014 were estimated to have increased by 5.2 per cent compared with Q2 2014 and by 3.2 per cent compared with Q3 2013.

There were increases in private commercial (22.4 per cent), private new housing (12.9 per cent) and infrastructure (8.1 per cent).

Output in October decreased by 2.2 per cent however when compared with September 2014. Both new work and repair and maintenance decreased, by 1.7 per cent and 3.1 per cent respectively. In the new work category, only public other new work saw an increase; all repair and maintenance work categories experienced a fall in work in October.

The ONS has revised its estimate of gross domestic product (GDP) for Q3 2014 with construction moving from 0.8 per cent to 1.6 per cent.

Managing director of Kier Construction’s Scotland & north-east England business, Brian McQuade, said that the statistics confirm steady growth in the Scottish construction sector.

He said: “Once again the construction output figures clearly evidence the steady growth that we are experiencing, not only within Kier, but right across the Scottish construction industry.

“This has been a good year for Kier. We have exceeded our revenue targets, and have been maintaining a very healthy order book as a result of winning and completing numerous private and public contracts for a range of clients, including schools, care homes, student accommodation, retail outlets, community complexes and community facilities right across the country from Aberdeen to Arran.”

McQuade added: “The steady growth to date, in my view, confirms that the construction industry can look forward to a very healthy, successful and prosperous 2015.”

Equally encouraged by the industry growth, Allan Callaghan, managing director of Cruden Building & Renewals, said the ONS data provides evidence of the continuing growth within the construction industry and this “gives grounds for cautious optimism”.

He added: “The importance of construction, the fabric on which Scotland is built, must not be underestimated. Affordable housing, schools, libraries, office and commercial buildings as well as road networks all provide the framework to build strong and sustainable communities.

“So whilst it’s great to see the growth we are experiencing within the sector reflected in the national statistics – it’s important that we continue to build on that in the weeks, months and years to come.”

Modest construction output growth ‘encouraging’

office_for_national_statisticsAllan Callaghan, managing director of Cruden Building & Renewals has welcomed a growth in construction output which was revealed today by the Office for National Statistics (ONS).

The figures show output in the construction industry grew 0.8 per cent in the third quarter of 2014, compared with the second quarter of the year.

The ONS said the growth was consistent with the wider economy across which GDP grew 0.7 per cent in Q3. The figures show construction output rose 2.9 per cent year-on-year in Q3, the sixth consecutive quarter of year-on-year growth.

New housing work, which was at its highest monthly level in September since 2010, remained the driving force behind growth in the industry.

New public housing work grew 5.7 per cent in Q3, compared to Q2, and new private sector housing grew 4.9 per cent. However, new commercial work declined 3.1 per cent in Q3.

Mr Callaghan said: “It’s encouraging to see that once again the statistics from ONS confirm that growth continues within the construction industry.

“The release of the stats coincides with a particularly buoyant time within the sector as companies the length and breadth of Scotland rebound from the downturn, win new contracts, deliver on time and within budget – and importantly recruit time served staff and new apprentices, for this to become palpable it is important this recovery is controlled and sustainable.

“This latest report confirms and underpins what we in Cruden have been experiencing over recent months. Our order book is healthy, our staff numbers are growing, and we plan to press forward with the recruitment of 14-16 new apprentices in 2015.

“In terms of house building, as part of the City Legacy consortium, we were delighted by the unprecedented demand for the homes within the Athletes’ Village, particularly when the house buying market had been stagnant for such a long time as a result of the global economic downturn. Our next Cruden Homes major mixed tenure housing project will be announced within the coming weeks and we look forward to the benefits which that will bring to the local area through the creation of jobs and providing a tangible boost to the economy.”

Cruden notches 15th straight year of profit

Cruden_Group_ScotlandConstruction and housebuilding firm The Cruden Group has recorded its 15th profitable year in a row despite a planned reduction in sales.

The company, which employs around 600 and has offices in Edinburgh, Glasgow and East Lothian, said that turnover slipped to £135 million in the 12 months to 31 March, down from £141m a year earlier. Profits were £1m lower at £4.8m.

However the directors declared they were happy with the performance as both its divisions remained profitable.

Managing director Kevin Reid said: “Whilst turnover and profit are marginally lower than last year, it is still a strong set of results and with many new projects in the pipeline and a solid order book, combined with our cash positive position, we are well placed to continue to build on our successes through the remainder of this year and well into next.”

The firm was involved in building the athletes’ village for the Glasgow Commonwealth Games.