Caddick Construction returns to profit

left to right are Paul Dodsworth, Johnny Caddick and Myles Hartley

In the year to 31st August 2023, Caddick Group turned over £575m (2022: £492m) and made a pre-tax profit of £35.5m (2022:£58.0m).

However, where the 2022 result was boosted  by property development activities and the construction division made a loss, the latest results see Caddick Construction return to profit.

Group companies Caddick Construction, Caddick Developments and Moda Living all achieved significant milestones during the year, including more than 4,500 homes on site across the period, as well as two million square feet of industrial and employment space.

Caddick Construction reported a turnover of £318m, up 38% on the previous year, and made a 2.3% profit. In FY 2022 it made a pre-tax loss of £3.9m.

Moda Living is a joint venture with Generate Land that develops build-to-rent (BTR) housing for the private rented sector. It opened its first Casa by Moda neighbourhood last year and launched a new purpose-built student accommodation. With 2,500 units completed and operational, and a further 3,600 units under construction during the period, Moda also secured the largest ever funding deal for a regional BTR development in the UK for Great Charles Street in Birmingham and announced a new partnership with Aviva Capital Partners in the insurance giant’s first move into BTR.

Caddick Group has more than £9.8bn worth of assets in its development pipeline, including more than 18.5 million sq ft in logistics and distribution space and more than 34,000 homes.

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Chief executive Johnny Caddick said: “It’s been another strong year for Caddick Group, and we’re particularly proud to have hit a milestone turnover of over half a billion pounds, as well as securing an impressive development pipeline to secure the future success of the business.”

Caddick Construction group managing director Paul Dodsworth added: “We’ve had a very positive year across all businesses under the Construction Group, demonstrating our resilience, adaptability and commitment to excellence. It’s been an exciting year of change with the launch of our new office in Birmingham, and our expansion into the North East market, enabling us to increase the geographical reach of our excellent reputation for high quality projects. We maintain a focus on ensuring our growth is steady and sustainable thanks to the skill, knowledge and dedication of our amazing regional teams.

“As part of this, we are making great progress in balancing our portfolio of public and private sector projects through a range of framework appointments. We are forecasting a turnover for 23/24 of £400m with a forward order book of £704m, which is a testament to our financial strength and our strategy to do business with like-minded customers, delivering exceptional projects and always treating our supply chain fairly.”

Myles Hartley, managing director of Caddick Developments, said: “This year, we have prioritised developing and diversifying our pipeline across both the residential and the industrial and logistics sectors, bolstering our operations as we enter into our next phase of growth. With a number of key promotions recently made across the business, our priority has also been to invest within our people to continue driving forward the fantastic progress that we have seen over the last year.

“Looking ahead, we have a number of exciting projects coming forward, including our £1bn South Village scheme, the completion of the SOYO regeneration project, and the beginning of phase two of Farington Park. Each of these key developments, alongside our wider portfolio, acts as a key example of our commitment to creating high-quality spaces that make a long-term positive impact on people, place and planet.”

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