The Aberdeenshire construction firm has revealed higher turnover and profits for the year to September 30 2023.

The group has seen its pre-tax profits rise to £206,000 in 2022-23 from £152,000 the previous year, marking a significant leap forward. The turnover witnessed an upward trajectory as well, soaring over 13% to reach £53.2 million. This financial resurgence comes at a time when the company is consciously working towards reducing its borrowings, having reached a milestone of not utilising any bank facilities. Such fiscal prudence, coupled with a proactive approach to client engagement and a bolstered preconstruction team, sets Chap Group apart in its quest for sustainable growth.

At the heart of Chap Group’s success story is a bold move towards geographical diversification. The decision to expand into Tayside and Perthshire has not only opened new avenues for the company but has also led to the bagging of significant contracts that speak volumes about its capabilities and reputation. These include projects as diverse as student accommodation in Dundee, a hospitality venture in Perthshire, a care home in St Andrews, and an innovative distillery in Blairgowrie.

Managing director Hugh Craigie has been vocal about the pivotal role this strategic shift has played in bolstering the company’s revenue and profit margins, emphasising the criticality of exploring new markets in today’s competitive landscape.

He said: “Despite persistent difficult market conditions, we have managed to maintain momentum and again record both revenue and profit growth.

“Our decision to expand into Tayside and Perthshire has played a key role in this, with work in Aberdeen and Aberdeenshire remaining hard to secure.”

Mr Craigie also said the company’s drive in recent years to reduce borrowings had “proven successful”, with the group currently “not utilising any of our bank facilities”.

The company aims to reduce its reliance on competitive tendered works. It plans to do this through “proactive client engagement, strengthening its pre-construction team and the company’s ability to manage and undertake design and build contracts”.

Mr Craigie added: “Great progress has been achieved in the last two years. The company is seeing a positive return on its investment in our people and processes.

“We are confident that this momentum will be maintained, and we are excited for the years ahead.”