Cruden back in the black | Scottish Housing News

Cruden Group has rebounded impressively, reporting a turnover of £132 million and a profit of £2.6 million before exceptional costs for the year ending on 31 March 2024. Additionally, they have seen a notable increase in net asset value, reaching £40.7 million. Established in 1943, Cruden Group made a strategic decision last year to restructure its construction business, focusing on land-led construction opportunities and partnership projects. This shift has significantly reduced the group’s reliance on competitively tendered housing projects.

Following the recent financial reporting, Cruden has successfully secured three major new construction projects procured through this new approach. These projects hold a combined contract value exceeding £62 million. The group’s private house building arm has also demonstrated profitability, making good progress in securing land for future developments. Currently, Cruden is working on seven private housing projects across the Central Belt of Scotland.

In the upcoming months, Cruden plans to introduce new private developments in various locations such as the south side of Glasgow, East Lothian, and north Edinburgh. The group boasts a solid capital base, with increased net assets of £40.7 million and substantial cash reserves of £15 million at the end of the financial year. Additionally, they have undrawn revolving credit facilities amounting to £9 million, ensuring a stable financial platform for future projects.

Noteworthy affordable housing projects currently underway by Cruden include:

Collaboration with Edinburgh City Council on the construction of 142 Net Zero affordable homes at Silverlea in North Edinburgh.
Working alongside the Scottish Borders Housing Association (SBHA) to deliver 70 affordable homes on the site of the former Howdenburn Primary School in Jedburgh.
Engagement with Midlothian Council to build a mix of 75 flats, cottage flats, and houses in Gorebridge, which includes extra care and accessible units.

The private house building division, Cruden Homes, has a strong sales presence in various locations including Birchwood Brae (Wallyford), Cleddans Grove (Glasgow), Hawkhead Mews (Renfrewshire), Wellwater Grove (East Calder), and West Craigs Green (West Edinburgh). Additionally, a luxury age-exclusive development is nearing completion at Barnton Avenue West, situated on the northern edge of the Burgess Golf course. Progress is also well underway on the second phase of the award-winning Longniddry Village development.

Kevin Reid, the executive chairman of Cruden Group, expressed his satisfaction with the strategic changes implemented last year, citing their success in reducing reliance on traditional high-risk, low-margin projects. By focusing on development and serving all market tenures, including private and affordable housing, the group is better positioned to deliver high-quality homes across Scotland. Reid also mentioned that Cruden is closely monitoring the evolving build-to-rent sector and is prepared to meet the increasing demand in that market once conditions become more favourable.

Reid commended the professionalism of the entire team at Cruden for successfully navigating through a period of change while maintaining a high standard of service across all market sectors.