Cruden results hit by lower private home sales

Construction and residential development company Cruden Group has seen annual turnover and profits fall, after a drop in the number of private homes it sold last year.

Cruden's turnover dropped to £188.6m in the year to 31 March, down from £200.6m in 2017. Picture: Nick Callaghan

Turnover dropped to £188.6 million in the year to 31 March, down from £200.6m in 2017, while pre-tax profits fell by £1.5m to £9m.

Cruden sold 158 private homes during the year, compared with 280 in 2017, due to “timing in the development process”. The group “fully anticipates” private home sales will exceed 220 in the current financial year.

The company enjoyed a jump in its average house sale value, from £226,000 to £270,000.

Cruden, which has 655 staff and approximately 60 active sites across Scotland at any given time, said it has now reported 19 consecutive years of profitable trading.

Managing director Kevin Reid said: “Despite unsettled economic conditions, demand in the housing market remains encouraging and we continue to see strong interest in our diverse range of quality, affordable and energy efficient family homes. The continued availability of Help to Buy (Scotland) has also been beneficial to our first-time buyers and has given them a welcome first step on to the housing ladder.

“We have a strong forward order book and this will generate increased levels of activity in the construction of much needed affordable housing for our clients, and their prospective tenants. The outlook looks positive for the year ahead and I expect our turnover to increase in line with this.”