Caddick Group revenues soar amid build-to-rent boom

Caddick Group’s revenues have soared by more than a quarter, as the firm’s performance continues to improve in the wake of the COVID-19 pandemic.

Group revenue stood at £383.6m for the year to the end of August 2021, up by 28.4 per cent from £298.6m in 2020. Group profit before tax also rose by 9.4 per cent to £17.1m over the same period.

Caddick’s build-to-rent arm, Moda Living – a joint venture with Generate Land – accounted for £227.7m of group turnover. The development arm saw its profit before tax fall slightly, from £15.1m to £14.7m, over the year.

Group construction revenue stood at £147.4m, up from £123.9m in the previous year.

The group’s subsidiary Caddick Construction also filed annual accounts for the same period, which showed that turnover grew by 46.4 per cent to £99m, up from £67m in 2020. Profit before tax stood at £2.6m, up from £84,000.

Caddick Group did, however, suffer a continued loss in its professional sporting activities division, which made a £2.2m loss from £8.5m of revenue. The division posted a loss of £1.6m in 2020. The firm blamed the absence of fans due to COVID-19 restrictions for the downturn.

Commenting on Moda Living’s activities, the contractor stated that its 466-home Angel Gardens scheme in Manchester (pictured) is now fully let. Meanwhile, a 325-home development in Liverpool was completed in autumn 2021 and the group has six other projects currently under construction. Of those six schemes, Moda Living has a total of 2,728 homes being being built, two of which are set to complete in 2022. The six include two schemes totalling 879 homes in Birmingham, as well as developments in Leeds (515 homes), Edinburgh (337), Glasgow (433) and Hove (564).

Caddick Group’s results also note that the property-development arm is looking to capitalise on the boom in logistics requirements in the UK over the past 12 months.

The group reported that it had disposed of two developments in Knowsley and York to fund the purchase and planning of future industrial developments.

It stated: “A ‘mid-box’ scheme of six warehouse units totalling 300,000 square feet on the group’s 25-acre Leeds Valley Park site received planning consent. The build is expected to take 12 months with a start on site expected in mid 2022.” The report noted that Caddick Construction is lined up to work on the scheme.

Caddick Construction has also won a series of recent jobs across the North of England, including a £30m contract to build the first new office scheme in Bradford in decades, which followed on from work starting on the site of a £300m mixed-use scheme in Leeds.

Caddick Group stated that it employed 445 people, with the headcount falling from the 510 total reported in 2020.

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