Construction group builds on PRS growth as profits rise to £18m

Yorkshire’s Caddick Group has seen profits rise to more than £18m in the past year after a succession of high-profile private rented sector developments got underway.

Turnover for the year to August 2016 reached £148.6m, an impressive increase on the £94.2m it made the year before.

Pre-tax profits nearly quintupled from £3.9m in 2015 to £18.8m.

It has been very busy on the development front, with a pipeline worth more than £2bn, and its operating arms, Caddick Developments, Caddick Construction, Caddick Civil Engineering and Moda Living experienced “significant” growth in turnover and profitability.

The group’s Moda Living brand, a joint venture between Caddick and Generate Land, agreed to buy part of the NOMA site in Manchester for a PRS development. It attracted foreign investors and started on site in late 2016.

Moda saw strong growth with projects in the pipeline in Leeds, Liverpool, Glasgow and Edinburgh, as well as a site in Birmingham acquired post year-end.

Caddick delivered a £7m York residential site and an £8m Gateshead retail scheme working with a syndicate of investors for a share of the profits and also completed a 640,000 sq ft Wakefield distribution site for TK Maxx, Crosspoint 33 (pictured below).

Crosspoint 33

Developments on the horizon for Caddick include the City One site in Leeds, currently operating as a car pack but with outline planning permission for a 1.6 million sq ft mixed use scheme.

Outline planning permission has been granted for the £300m mixed use development at Quarry Hill in Leeds, delivering offices as well as retail, leisure and potential PRS residential

Paul Caddick, chairman of Caddick Group, said: “The Caddick Group financial results for 2016 are a reflection of the hard work and dedication of our in-house teams who have overseen the acquisition and delivery of a number of key projects over the past year.

“We continue to invest in the growth of the business through strategic land acquisition and look forward to building on these results in 2017.”