Glasgow construction firm City Building has returned £8.7 million to its partners Glasgow City Council and Wheatley Group which will be reinvested in public services and social housing across the city.

The figures were published as part of the organisation’s annual accounts; its first financial results since its repairs and maintenance service, City Building (Glasgow) entered a 30-year £3.7 billion JV with the local authority and Wheatley to deliver improved services to customers and guarantee thousands of jobs.

Established on 1 April 2017, City Building (Glasgow) now provides repairs, maintenance and investment work to Wheatley’s social landlords in the west of Scotland, as well as carrying out £30m of repairs annually for the council.

City Building (Contracts), which is wholly owned by Glasgow City Council, undertakes work for the council as well as competing with the private sector for commercial contracts, providing construction, repair and maintenance and manufacturing services.

According to City Building’s latest financial results, turnover for City Building (Contracts) increased by 15% in the last financial year, growing to £86.2m for the year ending March 31 2018 compared with £74.9m in the previous financial year.

This enabled City Building (Contracts) to return £4.2m to Glasgow City Council to be invested in public services.

Turnover at City Building (Glasgow) declined to £138m for the year ending March 31 2018 from £219m for the previous financial year following reallocation of work to City Building (Contracts) LLP side of the business. However, £4.5m was returned to Glasgow City Council and Wheatley Group, representing 3.3% of turnover.

The reallocation of work led to a decrease in underlying profit but when adjusted to take account of this, underlying profit rose to £8.768m – an increase of £1.518m (21%). Underlying profit at City Building (Contracts) increased by £4.1m because of the reallocation of work from City Building (Glasgow).

Dr. Graham Paterson, executive director of City Building, said: “City Building continues to go from strength to strength following its new structure, delivering a strong economic contribution for its partners and helping to support thousands of jobs and create training opportunities for a diverse range of people across the city. Wheatley Group’s customers are also benefiting from the new repairs model implemented following the JV.

“We’re encouraged by the first set of financial results and look forward to developing City Building further to grow the business and deliver improved services for the people of Glasgow.”