INDEPENDENT construction and housebuilding business The Cruden Group has said its home sales grew more than 40 per cent in its most recent financial year.

But the company, which employs around 600 and has offices in Edinburgh, Glasgow and East Lothian, still reported a fall in turnover and profit.

However the directors declared they were happy with the performance as both its divisions remained profitable.

The results show the group's pre-tax profit falling by £1 million to £4.8m while turnover dipped more than four per cent from £141m to £135m in the 12 months to March 31 this year. The falls were attributed to a 7.6 per cent decline in construction turnover as Cruden refused to chase lower margin work.

However chairman Mike Rowley pointed out the business has now delivered profits for 15 years in a row.

He said: "The board is delighted that the Group has continued its now fifteen year unbroken profitable trading history with another positive contribution.

"The business is in a good position to take advantage of the many opportunities that are available to us."

Net assets grew more than 10 per cent to £32.4m with Cruden stating its cash balance is around £25m. Its completion of the Athletes' Village for the Commonwealth Games was one highlight with the delivery of the single largest National Housing Trust project in Scotland, for 145 flats in Edinburgh, another notable project mentioned.

The directors said there had a been a notable increase in the number of construction tenders it had won in the first six months of the current trading year.

In housing, average prices rose from £161,000 to £184,000 in the previous financial year, reflecting a larger number of family homes being built. House sales rose from 63 to 90 while prices are said to have continued rising, albeit marginally in the current trading year.

The group said the market continues to benefit from Help to Buy and greater availability of mortgages although it is too early to assess what impact the proposed changes to stamp duty in Scotland will have.

It is working on regeneration projects in the likes of Govan in Glasgow, Raploch in Stirling and Gracemount in Edinburgh involving the building of hundreds of houses.

The Queensbury Properties arm, a partnership with Buccleuch Property, has secured two prime sites in Edinburgh which will deliver around 90 homes across the next two years.

Kevin Reid, managing director, said: "The Cruden Group continues to benefit from its balanced exposure to the construction and residential development sectors. In an improving economic environment, particularly in the housing market, the group is making good progress.

"Whilst turnover and profit are marginally lower than last year, it is still a strong set of results and with many new projects in the pipeline and a solid order book combined with our cash positive position, we are well placed to continue to build on our successes through the remainder of this year and well into next."

The group also said its first student accommodation project in Edinburgh had been contracted while it is also making inroads into the care home and education sector.

A large land site in Portobello has been partially sold to Aldi with Cruden applying for planning permission for mixed retail and residential development.