Caddick Construction targets £400m turnover

A sharp upturn in performance across Caddick Construction’s four operations delivered the rise in turnover to a record £356m in the year-end August 2024.

Pre-tax profit climbed 13% to £8.3m, driven by growth across key regions and improved performance after a period of senior leadership change.

Alongside growth in revenue, Caddick Construction’s order book has continued to grow by 7% to £750m and year-end cash increased to £32.8m.

Over the past three years, the division has undergone significant change in its senior team, with several director retirements prompting a strategic reshuffle.

The Yorkshire business bounced back into the black following a difficult 2022/23 on stronger margins despite only a modest rise in turnover.

The Midlands region contributed £30m after opening a new office last year. A dedicated subsidiary has now been formed to support further expansion in the region, with staff and trade transferred as of 1 September 2024.

In the North West, operations continued to solidify with a more diverse sector spread including defence and education. While turnover was up 13%, profits were down compared to last year, which had benefitted from the high-margin Farington build contract.

Caddick also launched a Midlands office during the year, which now trades as a separate subsidiary.

The civil engineering arm reported turnover of almost £16m, up 17% on last year, with profits holding steady.

But, with 91% of work concentrated in just four contracts for two national house builders, the business is now looking to diversify its client base and explore intra-group and external civils work.

Elsewhere, the newly launched CCL Facades business posted turnover of £9.5m and pre-tax profit of £0.6m in its first full year of trading.

The business is delivering services both internally and to third-party clients and has been flagged for strong future growth potential.

Chairman Paul Caddick said: “We’ve built on a robust order book and continued to grow our operations regionally while maintaining financial stability. The £400m forecast turnover for the current year is already 87% secured.”

The group currently holds a £500m order book, with £347m of that expected to convert within the 2024/25 financial year.

The wider Caddick Group, including build to rent and student living business Moda and other property development, reported pre-tax profit down 18% to £29m from revenue up 5% at £604m.