Corporate
Caledonian Building Systems – Expansion plans following a record year
General
Caledonian Building Systems have just announced a record year, with turnover up on the previous best by 54% to £140m.
The company operates in the key market sectors of Custodial, MoD, Hotels, Residential (be this private or social housing apartments and student halls of residence). The Custodial and MoD sectors have benefited from an increasing level of work from long term framework contracts, whilst the development sectors for Caledonian of hotel and residential buildings, have seen both seen year on year growth.Strong business growth is again expected in 2008.
Caledonian Building Systems is unique in the market, having built up to 17 stories, as well as completing Design and Building contracts worth individually up to £40m.
Due to the scope and nature of the successfully completed projects and close relationships with a number of key main contractors and developers, the value of projects in the pipeline continues to grow. Architecturally, buildings are more involved through use of faceted façades and contemporary cladding and roofing options.
Expansion and acquisition
The UK Market for Modern Methods of Construction has shown sustainable growth above 10% a year, with Caledonian forging ahead of this trend. Having already double manufacturing capacity in 2005, Caledonian has now embarked on its next stage of growth.
Firstly Caledonian Building Systems has acquired the modular building company ModularUK, which is based in Driffield, East Yorkshire. ModularUK is a £12m turnover company, specialising in volumetric building systems for education, health and office accommodation.
There are clear synergies for the group with this acquisition, as it allows Caledonian entrance into new markets, whilst providing ModularUK with a broader base to work from. As such the company will be able to offer a greater range of building solutions to clients. ModularUK will retain its own identity within the market.
To complement the acquisition of ModularUK, Caledonian has taken possession of a new manufacturing site, also in Driffield. The new manufacturing site, which represents 150,000 sqft will be developed over the next few months. ModularUK will take part of the site, following a move from its current premises, with Caledonian taking 100,000 sqft.
The 100,000 sqft expansion for Caledonian at Driffield represents a 25% increase in its manufacturing capacity (excluding ModularUK). The new facilities will account for up to 115 new jobs in the area when fully operational on top of those that already exist at ModularUK.
Strategically the acquisition and new manufacturing facilities provide a stable platform for continued growth to ensure Caledonian maintains its commitment to its client’s across the UK.
Future
The Modern Methods of Construction market will continue to grow in the UK, as developers and main contractors look to exploit the time, quality and cost benefits of MMC.
There are clear opportunities for growth within markets for the provision of student halls of residence, social and key worker housing schemes, as well as large commercial developments for office, retail, hotel and private apartments. Many schemes Caledonian is engaged in combine an element of traditional construction eg Concrete basement and lower floors for parking, retail and offices, with modular construction providing hotels and apartments above this.
Public procurement for the Ministry of Justice and within Defence Estates also looks buoyant for the foreseeable future.
