Profits more than doubling and sales rising by a third have been described as “disappointing” by a Perthshire construction firm.
Based in Aberuthven, Hadden Construction is a main contractor, residential developer and builder.
Among its projects have been the refurbishment of Viewlands Primary School in Perth; upgrading The Birks Cinema in Aberfeldy and the extension and refurbishment of Dick McTaggart Gymnastic Centre in Dundee.
Newly filed accounts for the year ending March 2020 show pre-tax profits more than doubled to £282,348 from £125,655 previously, while turnover was just over £7 million ahead at £28.95m.
The firm’s directors said the results were “disappointing” but reflected significant investment in infrastructure and resources.
Impact of Covid-19
Meanwhile, like many businesses up and down the country, Hadden said it has not escaped being hit by the arrival in Britain of Covid-19.
The company said sales in the latest financial year which ended last month were “materially impacted” by the pandemic and the subsequent national lockdowns.
But the directors state that they have taken steps, through funding support offered by the Government and other institutions, to offset expected decrease in turnover and associated overhead recovery and profits.
“These measures allow us to continue trading, securing future contracts and developments and maintaining our operating levels to keep us business-ready for the return of normal trading levels,” the accounts stated.
Wide portfolio of projects
Hadden, which employed an average of 87 people during the year, was founded in 1992 by Scott Hadden, Ronnie Horne and Murray Stewart.
From an initial capital investment of just £10,000, the firm says it has grown to be Perthshire’s largest headquartered main contractor.
Hadden has started work transforming the former Maxwelltown Works on Alexander Street in the Hilltown area of Dundee in a project for Cullross Limited and Caledonia Housing Association.
It won planning permission in February for 18 homes on the site of the former Fairfield Neighbourhood Centre in Perth.
The strategic report said: “The company’s core business remains the construction and refurbishment of major public-sector and commercial buildings, and the development and construction of speculative housing for sale, together with new affordable housing for the public sector.
“Over 70% of our turnover in construction is derived from framework projects, which allow us to negotiate better terms in relation to pricing and programme risk.
“With us now appointed into 17 frameworks, we see this healthier route of procurement continuing to be our main workstream.”
These agreements include a place on the small housing developments framework across the Angus Council area.
Among other agreements is that of a tier-one contractor on a five-year supplier framework from 2017 to 2022 by HUB East Central Scotland.
However, the Hadden bosses say they cannot however rely solely on business through frameworks.
The report added: “We pursue further development opportunities for our homes division, and our estimating department continues to price projects at a volume consistent with the last five years of trading.”
The directors add that there had been slippage in programmes for a number of framework projects, which resulted in deferred receipt of sales revenues.
In addition, they say that there had been delays in the planning process for the firm’s own speculative housing developments, exacerbated by further delays created by issues with statutory authorities. This also affected sales revenues.
