By Scott Wright
CCG (HOLDINGS), the Cambuslang-based construction group, has highlighted its growing presence in the affordable housing sector as it hiked profits and turnover in its latest financial year. But the builder warned Brexit would bring “unquantifiable uncertainties” which are likely to affect its costs and the availability of materials.
The company, which as well as housebuilding is engaged in off-site manufacturing, building services and asset management, lifted pre-tax profits by nearly 40 per cent to £12.6 million in a year ended March 31, accounts newly filed at Companies House have revealed.
Profits rose as the business expanded turnover by 16.6% to £168.4m, with revenue driven by the construction of more than 1,000 homes.
CCG said the period saw it continue to work with local authorities and housing associations to build a pipeline of projects, with orders now stretching beyond 2021.
At the same time, the company, which derives around 85% of revenue from housebuilding, returned to the private housing market with the relaunch of CCG Homes. So far more than 70 homes, out of a total of 156, have been sold from its “flagship” Riverford Gardens project, which launched on the south side of Glasgow in September last year. CCG said the division will also deliver 81 homes at East Whitlawburn in Cambuslang, a mixed-tenure development where it build 311 homes by 2022.
The company’s progress came as financial director Bernie Rooney warned of the threat posed by Brexit in the group’s latest accounts, which were filed at Companies House earlier this month.
Mr Rooney said: “Brexit brings unquantifiable uncertainties which will probably affect our material availability and costs. The challenge will be met head on by the group and its supply chain partners.”
Mr Rooney highlighted the directors’ view that the company’s experienced workforce mean it is “well placed to manage the risk and opportunity in the marketplace”. He underlined its commitment to training and investing in young people, noting that, at March 31, the group employed 68 trade apprentices and 33 professional, management and administrative trainees. The firm’s average overall headcount was 669 for the period, up from 626.
More than 120 staff are now employed at CCG’s offsite manufacturing facility, where timber systems are be built in a 130,000 square foot factory, following the introduction of a double-shift pattern. Mr Rooney noted that CCG’s investment in manufacturing, research and development and its workforce would help it meet the “mounting challenges” it expects to face as an “increased level of contract opportunities materialise, relative to skills shortages and materials availability”.
He said: “Our staff are the lifeblood of our business and we believe that in times of skills shortages, our investment in skills replenishment is crucial to the sectors’ long-term success.
“In many projects we aim to create opportunities in the communities in which we operate so the economic impact of our long-term strategy is reaching beyond our projects and embedding skills into communities.
“We are immensely proud of how we have developed that over the past year.”
CCG has appointed three new directors this year. David Wylie became managing director in January and has added Stephen Ruxton, John Baggley and Graeme Wylie to the boardroom.
Mr Wylie said: “My first year as managing director has been exciting. Our company has achieved a lot during this time, but we still want to move forward and the appointment of Stephen, John and Graeme, who have collectively worked for CCG for over 60 years, will help us do that.”
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