North-east builder Chap (Holdings) said today its core operations were poised for growth after a significant restructuring of the business.
Chap closed its kitchen trading subsidiary, NTP Kitchens, last year.
The company also reduced the size of the investment property portfolio as part of its efforts to cut net debt and focus on its strengths in construction.
In accounts just filed at Companies House, Westhill-based Chap reports trading profits of £729,000 for ongoing operations during the 18 months to September 30, 2013.
But losses on discontinued operations, exceptional items, interest and taxation pushed pre-tax profits into the red, with the firm reporting losses totalling £2.38million following profits of £161,184 in the previous 12 months.
Group turnover was £61.8million for the latest period, against £45.2million for the year to 31 March 2012.
The company’s four core activities include construction, civil engineering, homes and quarries, and Chap said these were well-placed to take advantage of improving market conditions.
In housing, Chap said its Inverness and Aberdeenshire developments were experiencing strong demand and a joint venture – Woodland Grove, Milltimber, Aberdeen – had just a couple of units available and was nearing the end of its second phase. Third phase work is due to start in August.
Chap said its quarrying business was “already slightly ahead of the curve this trading year, with sales up 28% during the first seven months.
Meanwhile, the firm said its Silvertrees Business Park in Westhill was growing in popularity and tapping into the needs of the north-east’s burgeoning subsea sector.
Joint managing director Hugh Craigie added: “The challenging economic conditions of the past few years have meant that we, like many others in the construction industry, have had to restructure our operations to ensure that we’re fit to move forward as the economy recovers.
“With our renewed focus on the core activities of construction, civil engineering, homes and quarries, we are ideally placed to take advantage of the more encouraging market conditions.
“All four areas continue to perform well and we have exciting developments in the making.
“Given the continued increase in demand for new homes and offices, we are actively seeking new commercial and residential property sites to bolster our land bank as this remains a priority for us.
“We are also looking for new quarry resource in the north east to further strengthen and expand our strongly performing quarrying operation.”
Twenty-nine people lost their jobs when Aberdeen-based NTP Kitchens, which also ran the Kutchenhaus franchise in the Granite City’s Union Square shopping centre, collapsed last autumn amid falling sales and debts which hit £3million.