Profits more than double but Hadden is ‘disappointed’

Profits more than doubling and sales rising by a third were described as “disappointing” by a Perthshire construction firm.

Based in Aberuthven, Hadden Construction is a main contractor, residential developer and builder.

Newly filed accounts for the year ending March 2020 show pre-tax profits rising to £282,348 from £125,655 previously, while turnover was just over £7 million ahead at £28.95m.

Directors said the results were “disappointing” but reflected significant investment in infrastructure and resources.

The company said sales in the latest financial year which ended last month were “materially impacted” by the pandemic and national lockdowns.

But the directors state 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 businessready for the return of normal trading levels,” the accounts stated.

Hadden has started work transforming the former Maxwelltown Works on Alexander Street in Dundee in a project for Cullross Ltd and Caledonia Housing Association.

It won planning permission in February for 18 homes on the site of Perth’s old Fairfield Neighbourhood Centre.

The strategic report said:

“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.”

However, the Hadden bosses say they cannot rely solely on business through frameworks.

The directors add that there had been slippage in programmes for a number of framework projects, which resulted in deferred receipt of sales revenues.

They say 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.

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Over 70% of our turnover in construction is derived from framework projects

PROJECTS: Hadden has started work transforming the former Maxwelltown Works on Alexander Street in Dundee.