“We have been very deliberate about how we want to grow Cruden” – Fraser Lynes, CEO
Scottish housebuilder Cruden has seen profits more than double as it pushes ahead with major developments and expands into new areas.
The Edinburgh group’s latest figures for the year to the end of March reveal that total turnover, including its share of joint ventures, increased to £134 million, from £112m in the previous year, while profit before tax and exceptional items jumped to £6.1m, from £2.8m previously.
Bosses said the results reflected improved performance across the company’s core housebuilding activities following its strategic focus on increased private development and “partnership-based” affordable housing and a “move away from price-led tendered construction”.
Cruden, which was founded in 1943, currently has a development pipeline of more than 3,500 homes, spanning private and affordable housing.
At Granton Waterfront in north Edinburgh, Cruden is contributing to one of Scotland's most significant regeneration programmes, delivering more than 800 homes in the first phase, while The Village at Dalmarnock builds on the firm’s longstanding involvement in the area following its completion of the athletes’ village for the Glasgow 2014 Commonwealth Games.
Cruden chief executive Fraser Lynes said: “These results demonstrate the progress we are making and, importantly, show that our strategy is translating into stronger financial and operational performance.
“We have been very deliberate about how we want to grow Cruden. We are increasing our private housebuilding activity while focusing our affordable housing business on land-led developments and genuine partnerships where our development expertise can add real value.
“We are now seeing the benefits of that approach through increased home sales, improved profitability and a strong pipeline that gives us visibility over the next phase of growth. There is still a great deal to deliver, but we have entered the new financial year with real momentum and a clear sense of direction,” he added.
Private home sales increased by more than 20 per cent to 148 homes, from 121 in the previous year. The average selling price was £311,000, compared with £347,000, reflecting the mix of homes sold and a greater proportion of “value-focused” family homes, Cruden added.