Cruden sees growth on the horizon

WARRINGTON-based construction group Cruden increased turnover by 4% in 2011, while pre-tax profits climbed by 13% to £791,000.

The company, which is owned by London-based Headcrown, said that all of its four trading divisions made a profit in the year to September 30, including the newly-established Cruden Small Works business set up to exploit “niche” opportunities arising from consolidation in the public sector. It made a profit of £95,782 on turnover of £7.2m in its first year of trading.

Company chairman Stephen Morris praised the efforts of the managing director of the company’s Property Services division, Malcolm Gemson, for being “totally focused on returning that business to profit”.

The division saw its turnover drop to £9.7m from £16.4m a year earlier as some of its work was transferred to the Small Works division, but it still made a pre-tax profit of almost £343,000 (2010: £143,000).

Property Services also completed a major IT infrastructure project known as Horizon which it said “modernises the delivery repairs processes”. It began using the system on a “significant” project in November.

The company’s main trading arm, Cruden Construction, is responsible for more than two-thirds of its sales increased revenues by 7% to £54.1m. However, its profits before tax and interest charges dropped by 70% to £395,000.

Mr Morris said that although the division had enjoyed a healthy period of trading during the first half of the year, the second half became “increasingly difficult as contracting opportunities have severely diminished”.

“We expect the market to remain difficult into 2011/12,,” he added. “We will intensify our efforts in real productivity gains by engaging lean construction techniques and driving waste out of our business.”

The group’s remaining division, housebuilding arm Hillcrest Homes, also returned a profit of £246,000, compared with a loss of £252,000 in the prior year. Sales slipped to £4.6m (£5.2m), but Morris said the company’s efforts during the year had focused on “acquiring new, high calibre sites”.

“We have been successful on getting planning permissions on several sites, some of which are now moving to build completion. We have strong reservations and exchanges and look forward to contract completions early in 2012.

“Planning remains extremely sensitive and full of pitfalls but we have the skills and determination to grind some exciting, newly-acquired schemes through to successful outcomes.”