Cruden Group announces 21st consecutive year of profitable trading
Cruden Group praised a set of “robust” results in which it announced its 21st consecutive year of profit.
The group, which has delivered an average of 1,200 new homes across the country in recent years, has expanded its business – working with clients in the public and private sectors and increasing its investment in delivering new homes for sale, both in its own name, and with its joint venture partners.
In its latest results, Cruden revealed it made a pre-tax profit of £ 7.9million before exceptional items related to the coronavirus pandemic of £ 1.3million and recently reported revenue of over £ 228million, a 19% increase from the previous year. This involved construction for external clients of £ 180million, representing around 1,100 units completed during the year, and the sale of private homes for £ 48million, representing 241 private homes sold. in the year (including joint ventures).
Over the coming year, Cruden said it will focus on investing in delivering new homes for sale and sustaining that level of construction activity to deliver high quality homes that customers are badly needed in the public and private sectors. This will involve the group in all of its existing key areas of mixed occupancy regeneration, affordable housing, high-end housing in urban developments, tailor-made private residences and, moreover, its first developments in the residential sector for the elderly.
The coronavirus pandemic and the site closures that followed during the lockdown had an impact on the profit margins of long-term contracts reported in the group’s financial accounts for the year ended March 31, 2020. However, the group, thanks to its dedicated and professional staff has met the challenges posed by the pandemic with energy and courage. In collaboration with representative organizations of the industry, the Scottish government and unions, the group established exemplary sites in the central belt to demonstrate new safe work practices to support the Construction Scotland Restart plan.
Although the lockdown period and the resulting loss of productivity will also affect the financial performance of the current year, the group is confident of achieving another year of profits and, thanks to effective cash management, is well positioned to continue to invest in its core businesses in the future.
The total volume of new homes that Cruden will deliver this year is remarkable – aiming to complete around 1,500 new homes. Cruden currently has more than 50 active sites and the group is one of Scotland’s largest employers, with around 600 direct staff, including 72 apprentices and 1,000 other agents at Cruden sites employed by sub -contractors of the group’s supply chain.
Important landmark developments the group is currently working on include:
- Cruden Homes has started the construction, and now the sale, of a major new real estate development in Longniddry. This brings the number of homes under development in East Lothian (in Longniddry, Aberlady and Old Craighall) to 230
- In the west, Cruden Homes’ Cathkin View development in south Glasgow (98 units) has seen exceptional demand with forward sales already taken for future phases
- In one of the Group’s Joint Ventures (Properties of Queensberry), the 66 apartment, the £ 35million Waverley Square development, in the heart of Edinburgh’s Old Town, recently hit the market with significant early success
- Under a new brand, Residential Juniper, the group is currently building on two sites (in Scone and Kinross), respectively delivering 51 and 41 homes for sale to the senior market in 2021
- Since the end of confinement, Cruden building has been appointed prime contractor on eight new affordable housing developments delivering 413 homes in the West of Scotland to a large customer base
- In the East, Hart Builders was proud to deliver Berwickshire Housing Association 300th new house. Hart is also starting work on 133 new homes for Eildon Housing Association and Berwickshire Housing Association through three communities in the borders as part of a partnership relationship
- Hart Builders is also heavily involved in the delivery of housing in the city of Edinburgh, with over 1,000 houses / apartments under construction at nine locations.
- Cruden is invested in the delivery of 152 apartments which form the residential component of the £ 1 billion development in the St James area of Edinburgh.
Commenting on the Group’s activity, Kevin Reid, Managing Director of the Cruden Group, said: “It is a significant achievement to announce our twenty-first continuous year of profitable trading, especially in the difficult and unprecedented context of the pandemic. I am particularly proud of the responsible approach adopted by all of our employees both during confinement and when we return to the work sites. Their hard work to create an environment that enables a safe and efficient workplace has been admirable. The well-being of our staff, our contractors and suppliers, our customers and the communities in which we build continues to be our priority.
“In this context, I am also delighted to announce that the Cruden Foundation has now donated over £ 7million in total to charities across Scotland. Our staff should be proud of this achievement made possible only by their hard and continuous work.
“On the commercial front, we have started the coming year well with an extremely healthy forward order book. The chronic housing shortage across the country remains a problem and therefore we hope to further increase the number of homes we build this year to help fill this shortage.
“We will put more emphasis on mixed and sustainable housing communities, including combinations of affordable, built-to-rent and private sale housing, as well as mixed-use commercial and retail space. Building sustainable multi-tenure communities is at the heart of Cruden’s offering and we will continue to play a crucial role in delivering the housing Scotland so badly needs for the future.