Profit, turnover and home sales increase at Cruden Group
Construction and residential development business Cruden Group has recorded its seventeenth consecutive year of profitable trading after announcing an increase in turnover, profit and home sales.
Since its formation in 1943, the Group has built or modernised over 130,000 homes and currently delivers around 1,200 properties every year.
The Group’s focus on innovation, energy efficiency, regeneration and affordability all contributed to it being named Home Builder of the Year 2016 by Homes for Scotland, and also to winning Most Innovative Contractor at the UK-wide Housing Innovation Awards 2016.
Releasing its audited results up to 31 March 2016 this morning, Cruden revealed an increase in group turnover to £154.2 million (from £142.1m in 2015) and a profit before tax boost to £7.5m (from £7.1m in 2015).
The company’s net assets now stand at £38.8m (an increase from £35.6m in 2015), while access to a £9m bank facility remains undrawn.
Construction turnover grew 8 per cent from £129m in 2015 to £136m as the construction and refurbishment of public sector homes remains a key activity.
The number of homes sold by the Group also increased from 80 in 2015 to 139, reflecting the greater number of sales outlets this year. Of these homes, 34 were sold through joint ventures compared to just 7 in 2015. The average sales value in 2016 (including joint ventures) was £259,000, an increase from £181,000 last year.
Kevin Reid, Cruden Group managing director, said: “I’m very pleased to report another year of solid progress and strong results. Despite recent economic challenges, our order book continues to grow, and our diversified business model and positive cash position will allow the Group to maintain this steady progress in the current financial year.
“2016 has been a fantastic year for Cruden, and being named Home Builder of the Year by Homes for Scotland in May was particularly pleasing. I am extremely proud that Cruden has been recognised by industry experts and our peers for the diverse range of high quality build projects that we deliver, and also for our excellent team of employees who provide first class service to our customers and partners. We will continue to focus on retaining and investing in our talented employees and recruiting the best staff – because with a team like ours, we can really look forward with confidence.
“The Group board is delighted with the strong performance of the business in what remains a competitive environment. To have had seventeen consecutive years of profitable trading is a wonderful achievement.
“The Cruden Group is an innovative business with very experienced and capable teams and a high quality brand. Our flexible business model has always allowed us to take advantage of opportunities when they come our way, and we look forward to this continuing during 2017 and beyond. We are optimistic about the future and fully expect our business to grow steadily, and sustainably, in the years ahead.”
Currently active on approximately 50 live construction sites across Scotland, Cruden Group’s continued focus on the health and education sectors has also culminated in a number of new projects, including a new care home at Pinkhill at Corstorphine in Edinburgh, student accommodation at Buccleuch Street in Edinburgh and Pinkie Primary School in East Lothian.
As part of the City Legacy consortium, Cruden has now completed the retrofit works on the hugely successful Commonwealth Games Athletes’ Village, on budget and on time. 400 houses have been handed over to clients for rent, and all 300 private homes sold out, well ahead of schedule.
Cruden has also completed work on 100 units for rent at the King’s View development in North Toryglen, Glasgow, and the first phase of 55 units for sale has sold out months ahead of schedule. The development was voted Affordable Housing Development of the Year at the recent Herald Property Awards, with Cruden Homes also being recognised as Residential Sales Team of the Year.
The Group has also delivered 97 highly sustainable apartments and houses as part of the continuing regeneration of Craigmillar. This multi-tenure development delivered units for outright sale, for sale with either developer shared equity or Scottish Government shared equity, for sale under the Help to Buy scheme, and for mid-market rent. Planning is in process for a further 150 unit development at this location.