Caddick Group, the Yorkshire-based family-run construction and property development business, has reported a record turnover of £226m, in its annual report for the year ended 31st August 2018, with pre-tax profits of £11m.
Group-wider turnover climbed by 49% from last year while pre-tax profits grew by 37.5% as the company continues its focus on residential, logistics/industrial and strategic land opportunities.
With a £4.6bn development pipeline across housing and industrial, one of the largest in the UK, Caddick is emerging as a market leader in ‘beds and sheds’, two sectors with high growth potential thanks to strong fundamentals buoyed by broader structural changes.
Caddick’s Moda Living build-to-rent brand, a joint venture (“JV”) with developer Generate Land backed by Apache Capital Partners, has a £2bn pipeline of 7,000 high quality rental apartments in 10 cities across England and Scotland.
The JV’s flagship scheme Angel Gardens, a 466-home 35-storey tower in central Manchester, topped out in January this year, with the first residents moving in this Summer. Caddick Construction is building the project after taking over as main contractor from Carillion in January 2018.
Caddick expanded its land acquisition activities throughout 2018 too following the launch of the strategic land division in 2017, hiring three new team members. The division’s continued focus is on securing planning consents on small and large sites for residential and logistics/industrial use, which can be subsequently developed by the Group.
Caddick Construction enjoyed another strong year as well, with pre-tax profits jumping 30% to £2.74m. Caddick Construction also launched a North West subsidiary to capitalise on its growing work in the region, with projects spanning the residential, industrial/logistics and automotive sectors.
Reflecting the firm’s nationwide reach, Caddick now also has offices in Birmingham, London and Manchester in addition to its Group headquarters in Yorkshire.
Paul Caddick, chairman of Caddick Group, said: “Despite the challenges posed by Brexit and related political uncertainty, this has been a bumper year for the Group, with turnover breaking the £200m mark for the first time in the company’s history.
“After a dip last year, profits are also up, while we have a strong pipeline covering two of the hottest areas of the UK property market right now: beds and sheds. Given the continued mismatch between demand and supply in residential and logistics, driven by structural rather than cyclical shifts, we see further growth potential in both sectors and are committed to delivering.”