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Cruden reports 5% profit lift as house prices soar


10-13-2016

The Edinburgh-based group said it sold 139 houses in the year to March compared with 80 last year, with the average sale price rising 43% to £259,000, up from £181,000 in 2015

Cruden's King’s View development in North Toryglen, Glasgow
Cruden's King’s View development in North Toryglen, Glasgow

Housebuilder Cruden Group has reported a five per cent lift in full-year profits to £7.45 million as the average price of private homes sold rose 43 per cent to £259,000.

Accounts filed by Cruden Investments Ltd outline the overall group turnover rose 19 per cent to £169.6 million in the 2016 year to March 31.

The overall turnover figure includes £15.4 million from joint ventures (2015: £4.1 million).

Stripping out the joint ventures, group turnover rose eight per cent to £154.1 million.

The group notes construction turnover, which comes largely from building and refurbishing public sector housing, rose five per cent £136 million.

Gross profit edged up slightly to £17.4 million (2015: £17.1 million), however operating profit dipped five per cent to £5.89 million (2015: £6.23 million) as administrative expenses rose six per cent to £11.6 million (2015: £10.9 million).

However, operating profit from joint ventures - Countesswells and Queensberry Properties - doubled to £1.41 million, which served to lift operating profit four per cent to £7.3 million.

The Edinburgh-based group, which specialises in building both private and public sector housing as well as construction services, said the number of homes sold in the year rose to 139, up from 80 the prior year, with 34 sold through joint ventures, up from seven in 2015.

Cruden said the average sale price for its houses, including joint ventures, rose to £259,000, up from £181,000 in 2015, which the group said was down to “the mix of units settling”.

The group said its order book “will allow for similar levels of activity in the future”.

Cruden said it ended the year with £22.8 million in cash and a £9 million bank facility “remains undrawn”.

The group notes employee numbers were broadly similar to the prior year at 582, though the wage and salary bill rose three per cent to £23.5 million.

managing director, Kevin Reid, said: “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.”

www.dailyrecord.co.uk/

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