Caddick Group celebrates a year of substantial growth and strategic achievements despite declining pre-tax profits.
- The group’s revenue surged by 17% to £575 million, however, pre-tax profits saw a decline of nearly 40%, reaching £35.5 million.
- Caddick Construction turned around its financial performance, reporting a turnover increase of 38% and achieving a profit of 2.3%.
- Moda Living, a key venture, expanded with significant projects and secured the UK’s largest regional funding deal in build-to-rent.
- Chief executive Johnny Caddick and leadership highlight the group’s strategic expansion and sustainable growth initiatives.
In the financial year ending 31st August 2023, the Yorkshire-based Caddick Group posted impressive growth in revenue despite a considerable decrease in pre-tax profits. The group reported a revenue increase of 17% to £575 million compared to £492 million the previous year, yet the pre-tax profits dropped by nearly 40% from £58.0 million to £35.5 million. This decrease was largely influenced by the absence of last year’s gains from property development, although a positive turnaround was noted in the construction division’s profitability.
Caddick Construction, a division within the group, reported a remarkable 38% increase in turnover, amounting to £318 million. The division bounced back from a pre-tax loss of £3.9 million the previous year to posting a 2.3% profit this year. Such progress marks a significant recovery in the construction arm’s financial health, reinforcing the group’s overall resilience and adaptability in a competitive market.
Another significant milestone for the group came from Moda Living, a joint venture with Generate Land, focusing on developing build-to-rent (BTR) housing. This venture opened its first Casa by Moda neighbourhood, commenced new student accommodation projects, and achieved a historic funding arrangement for the Great Charles Street development in Birmingham. With 2,500 operational units and an additional 3,600 under construction, Moda Living continues to strengthen its position and expand its contribution to the group’s success.
Caddick Group’s development pipeline is robust, with over £9.8 billion in assets, featuring extensive projects across residential and logistics sectors. This pipeline includes more than 18.5 million square feet dedicated to logistics and distribution, accompanied by plans for over 34,000 homes. Such expansive coverage underscores the group’s strategic planning and long-term vision for growth.
Chief Executive Johnny Caddick expressed pride in achieving a turnover milestone exceeding half a billion pounds, while ensuring a solid pipeline for future success. Paul Dodsworth, managing director of Caddick Construction, highlighted the year as one of substantial progress across the group, marked by strategic expansions such as their new office in Birmingham and footprint extensions into the North East. Meanwhile, managing director of Caddick Developments, Myles Hartley, emphasised investment in personnel and diversification of their project portfolio as central to sustaining the group’s forward momentum and adaptability.
Caddick Group’s strategic manoeuvres and robust pipeline forecast a stable and prosperous future.
