North-east construction firm Chap (Holdings) has reported a “marked improvement” in trading despite challenging market conditions.
The company, based in Westhill, near Aberdeen, said yesterday it grew turnover by more than £3million to £40.5million during the year to September 30, 2017.
Improved trading, cost control and an “increased focus on site efficiency” drove operating profits into the black, hitting £668,000, against losses of £1.37million the year before, it added.
An £804,000 writedown in the value of investment property resulted in pre-tax losses of £276,000 but this was significantly better than losses of more than £1.5million in 2015/16.
Chap is close to completing Aberdeen City Council’s flagship Smithfield development of 99 homes and a new fish market for Peterhead Harbour Board.
New contracts started in the past year include a care home in Grantown, social housing projects in Huntly, Peterhead and Turriff, and the new renal unit at Kincardine Community Hospital in Stonehaven.
Joint managing director Hugh Craigie said: “These results are in line with expectations and demonstrate that the group’s strategy is on track to deliver targeted improvements in performance.
“Early indications in the current year are positive and, while the winning of new contracts continues to be highly competitive, we are confident that this progress can be maintained.”