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Firm behind £20 million Dundee student flats opens office in city

It is winning an increasing amount of work across Tayside and Perthshire.

An artists' impression of a new £19.9 million student accommodation development in Dundee city centre..
Artists' impression of £19.9 million student accommodation being buillt by Chap Group in Dundee city centre.. Image: Maven Capital Partners.

Expansion on Tayside and in Perthshire is paying off for north-east construction company Chap Group.

The firm has revealed higher turnover and profits for the year to September 30 2023.

It comes about a year after managing director Hugh Craigie said Chap aimed to diversify and expand its activities geographically.

Announcing the 2022-23 results, he said new work in its traditional heartlands of Aberdeen and Aberdeenshire remains “hard to secure”.

But Chap, which has its headquarters in Westhill, near Aberdeen, is picking up major contracts elsewhere.

Chap Group spreading its wings

The firm is currently working on a near-£20 million student accommodation development on the site of a former hessian fabric factory in the heart of Dundee.

The site is between Douglas Street and Brown Street.

Chap has also won contracts for a hospitality project in Perthshire, care home in St Andrews and new distillery in Blairgowrie.

Meanwhile, it has appointed industry veteran Paul Matthew – previously at Watkin Jones Group – as area construction director.

Chap Group managing director Hugh Craigie.
Chap Group managing director Hugh Craigie.

Hailing “another profitable year” in 2022-23, Mr Craigie revealed Chap recently opened an office in Dundee to manage a growing number of projects in the area.

He added: “Despite persistent difficult market conditions, we have managed to maintain momentum and again record both revenue and profit growth.

“Our decision to expand into Tayside and Perthshire has played a key role in this, with work in Aberdeen and Aberdeenshire remaining hard to secure.”

Driving down debt

Chap’s MD also said the company’s drive in recent years to reduce borrowings had “proven successful”, with the group currently “not utilising any of our bank facilities”.

The company aims to reduce its reliance on competitive tendered works.

It plans to do this through “proactive client engagement, strengthening its preconstruction team and the company’s ability to manage and undertake design and build contracts”.

Chap construction project.
Chap construction project. Image: Chap

Mr Craigie added: “Great progress has been achieved in the last two years.

“The company is seeing a positive return on its investment in our people and processes.

“We are confident that this momentum will be maintained, and we are excited for the years ahead.”

Pre-tax profits surged to £206,000 in the year to September 2023, from £152,000 in 2021-22. Turnover rose by more than 13% to £53.2m from just under £47m previously.

Company closing in on its 50th year

Chap employs about 145 people across its construction, civil engineering and Chap Homes business units.

Established in 1976, the firm takes its name from the surname initials of its four founders – Alasdair Craigie (the current MD’s father), Ian Harper, Frank Anderson and Ian Philip.

Mr Craigie Snr retired as chief executive in 2012, passing on the reins to his son and Douglas Thomson as joint managing directors. Mr Thomson left the compay in 2019.

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