The results mark the fifth consecutive year of profit growth for the Westhill-based construction firm, with revenue increasing by 8.4% and comparable profit before tax rising to £1.12m, before a £566,000 exceptional revaluation of property and development investments.

The firm said the improvement “reflects a combination of factors”, including a marked increase in Civils activity and the expanded geographical reach brought about by the new Dundee office.

The comparable gross profit increased significantly to £7.4m (excluding exceptional costs), compared to £4.9m in the previous year, while the gross margin percentage increased from 9.2% to 12.9%.

The group reported an exceptional cost of sale of £881k, primarily attributed to the write-down of land, which impacted the operating profit. A positive fair value adjustment of £315k was made following a review of the current valuation of investment properties, providing an accurate representation of their current value, CHAP said. The company still achieved a positive operating profit of £654k.

Hugh Craigie, CHAP’s managing director, said: “I am pleased that the company has once again met our budgetary targets and remains on track to achieve our long-term growth plans. The recent acquisition of A&A Civils will enhance the impressive performance of our Civils division, and substantial investment in our Construction division’s preconstruction team will support future growth phases.”

Looking ahead, CHAP plans to continue its geographical expansion and explore potential acquisitions to complement its ongoing organic growth. Having outgrown their long-term home at Westhill, the company has secured new office premises, remaining in Westhill. The move, anticipated to occur in autumn, will approximately double their office space.

The company also marked the passing of Alasdair Craigie, CHAP’s non-executive chairman and the last of the original four founding directors, in January 2025. Jim Clark has succeeded him as chairman.