Property development giant Caddick reports profits drop - but major projects on the horizon
Yorkshire-based property development giant Caddick Group has seen its profits before tax drop from £28.7m to £1.4m – but has a series of major projects on the horizon, newly-published results reveal.
Results for the 12 months to the end of August 2025 show company turnover dropped to £538m from a previous £603m.
Chairman Paul Caddick said the results reflected the “cyclical nature of property development”.
He said: "Against a backdrop of ongoing challenges in the market, both in the domestic economy and in response to the wider global pressures, I am pleased to report that the group has remained profitable for the year.
"Overall the group experienced a reduction in turnover of approximately 10 per cent, primarily due to fewer development realisations as a result of market conditions. Profit before tax for the year was £1.4m.
"This is in contrast to the exceptional results of recent years, which were buoyed by substantial development disposals, however it reflects the cyclical nature of property development. Importantly, our cash balance and cashflow remains robust.”
Mr Caddick said the company’s construction division did see turnover increase by five per cent to £373m but pre-tax profit dropped to £4.4m from a previous £8.3m.
He said: “Two challenging residential contracts significantly impacted the Yorkshire region results, causing it to slip back to a loss-making position for the year.” Mr Caddick added the construction division is in a stronger revenue position during this current financial year.
"Current construction group forecast turnover for the 2026 financial year is around £492m of which £486m is already secured or completed in the year to date, with the current combined order book having a further £420m of work already secured falling into the following financial years,” he said.
The company’s property development division currently has two build-to-rent schemes under construction in Birmingham, along with new student accomodation in Leeds expected to be completed in summer 2027. The group also has outline planning permission for a residential and office scheme in South Leeds which was secured in 2024.
Mr Caddick said: “The group has now worked up detailed site plans and is looking to secure grant funding to assist with site infrastructure works, then secure a forward funding investor to take the development into the build phase.”
It also has options on two “nationally significant industrial/logistics schemes” in Worksop and Ferrybridge.
Mr Caddick said the company’s pipeline includes major housing sites at Cattal near Harrogate and Elvington, as well as an 80 acre mixed use site at Fulford.
He said: “These, together with the strategic land sites at Worksop and Ferrybridge, should give the group the future opportunity to deliver over 18m sq.ft of industrial space and over 11,000 new homes.”
The report added: “The management of the business and the execution of the group and company's strategy are subject to risks, the over-riding ones being as a result of the current economic conditions.”