Profits that more than double and sales increased by a third were described as “disappointing” by a construction company in Perthshire.
Hadden Construction, based in Aberuthven, is a prime contractor, developer and contractor.
His projects included the renovation of Viewlands Primary School in Perth; Modernization of Birks Cinema in Aberfeldy and expansion and renovation of Dick McTaggart Gymnastic Center in Dundee.
Newly filed accounts for the year ending March 2020 show that pre-tax profit more than doubled from £ 125,655 previously to £ 282,348, while revenue was just over £ 7m at £ 28.95m.
The company’s directors said the results were “disappointing,” but reflected significant investments in infrastructure and resources.
Effects of Covid-19
Meanwhile, Hadden, like many companies across the country, said it had not escaped being hit by the arrival of Covid-19 in the UK.
The company said sales in the last fiscal year, which ended last month, were “materially impacted” by the pandemic and subsequent national lockdowns.
© SYSTEM The Birks cinema in Aberfeldy.
However, the directors state that through the funding support offered by the government and other institutions, they have taken steps to offset the expected decline in sales and related overheads and profits.
“These measures allow us to continue trading, secure future contracts and developments, and maintain our operational level in preparation for a return to normal trading levels,” the accounts read.
Broad portfolio of projects
Hadden, which had an annual average of 87 employees, was founded in 1992 by Scott Hadden, Ronnie Horne and Murray Stewart.
After an initial capital investment of just £ 10,000, the company has grown into Perthshire’s largest headquartered prime contractor.
Hadden began remodeling the former Maxwelltown facility on Alexander Street in Hilltown, Dundee as part of a project for Cullross Limited and Caledonia Housing Association.
In February the company received planning permission for 18 houses on the site of the former Fairfield Neighborhood Center in Perth.
The strategy report states: “The company’s core business continues to be the construction and renovation of key public and commercial buildings, as well as the development and construction of speculative housing for sale and new affordable housing for the public sector.
“Over 70% of our sales in the construction industry come from framework projects with which we can negotiate better terms in terms of pricing and program risk.
“With our nomination to 17 frameworks, we continue to see this healthier procurement route as our main area of work.”
These agreements include a space under the small housing development framework throughout the Angus Council.
Among other things, it concerns the agreement of a tier-one contractor with a five-year supplier framework from 2017 to 2022 by HUB East Central Scotland.
However, Hadden bosses say they can’t just rely on business through frameworks.
The report added, “We are pursuing further development opportunities for our home division and our appraisal department continues to rate projects at a volume consistent with the last five years of trading.”
Directors add that programs for a number of framework projects have stalled, resulting in delayed receipt of sales.
In addition, there were delays in the planning process for the company’s own speculative housing developments, which were exacerbated by further delays due to problems with the legal authorities. This also had an impact on sales.