Last updated 26th January 2021
CBC Construction & Property Group
Blair Nimmo and Geoffrey Jacobs of KPMG LLP were appointed as Joint Administrators of Central Building Contractors (Glasgow) Limited on 29th April 2020. A statement said that in recent years, the company has suffered from challenging trading conditions in the construction sector and has encountered reduced margins, contract disputes and delays in the commencement of a number of significant projects. The joint administrators were required to make 148 employees redundant immediately following appointment, with 11 members of staff retained to assist with the administration process
Established in 1971, the Company is a privately owned, family run Scottish construction company, providing a range of construction design, development and maintenance services throughout Scotland. Headquartered in Glasgow, it employed 159 people.
CBC is a family-owned contracting and property business operating across Scotland’s central belt. The privately-owned company was founded over 40 years ago by owner and chairman Sir Jack Harvie CBE and is managed from a head office in Glasgow and an area office in Edinburgh.
The firm works in construction, stonework, property maintenance and development, mainly in the central belt of Scotland with a turnover of just under £40 million. Its capital contract values range up to £25 million and it works on frameworks up to £80 million and some 73% of the group’s business is from repeat clients. CBC also has a significant directly employed workforce of around 120 operatives alongside a management team of 81.
CBC is the brand name for Central Building Contractors (Glasgow) Ltd and is one of the few Scottish contractors to offer a fully comprehensive package of construction services which includes property development and maintenance. The group also includes a property development arm, City Link Development Company.
The firm appears to be maintaining a solid workload although CBC’s latest financial report, filed in July 2019, showed the group continued to report a pre-tax loss. The firm noted that one risk if faces is that competition in its market sector remains exceptionally competitive.
Financials
To view the financials for CBC Construction and Property Group Ltd., visit Companies House and use Company ID SC203230.
Delays to some project starts meant turnover at CBC in the year to end September-2017 did not reach the level expected. In the year to September 2018, turnover was little-changed at £38.2 million compared to £38.6 million, previously. At the operating level, the group returned to the black with a profit of £6,000 compared to an operating loss previously of £69,000. However after higher interest payable the pre-tax loss widened to £267,000, from a loss of £193,000 previously. Meanwhile, the balance sheet showed cash of £199,000, up from £99,000 previously and net assets of £14.3 million.
CBC Construction
CBC operates a number of partnering and framework arrangements and a significant share of its workload is repeat business. Based in Glasgow, it has satellite offices in Edinburgh, Kilmarock and Sterling. Around 50% comes through design and build or design, develop and construct procurement routes. The company works on capital contracts up to £25 million and frameworks up to £80 million.
The firm’s key work areas cover: construction, design and construction, property development, stone masonry, landscaping and grounds maintenance and property maintenance
It operates through six categories: CBC Live (residential developments), CBC Care (health and residential care facilities), CBC Learn (pre-five, primary, secondary, further and higher education establishments), CBC Restore (refurbishment and conservation works), CBC Work (offices, industrial and retail schemes), CBC Play (sport, leisure and community facilities).
CBC has worked on many landmark schemes in Scotland including the £17 million Metropole Building in Glasgow’s Clyde Street. More recent projects have included a design & build scheme of 102 flats worth £11.7 million at Western Harbour, Edinburgh as part of the regeneration of Leith Docks.
Recent projects which the company has handed over include the new Travelodge Glasgow Govan hotel, close to the city’s Queen Elizabeth University Hospital. It also recently handed over an award-winning Health and Community building, ‘The Shields Centre’ for NHS Greater Glasgow and Clyde, a state-of-the-art-facility.
In late 2019, CBC handed over a major car showroom for PVCarStore, in Hillington in Glasgow ; a large retail unit involving 75,000 sq ft of internal and external car display areas and offices.
Meanwhile, also in late 2019, CBC started work on a £4.18 million scheme of 27 flats at Landressy Place, Bridgeton on the site of a former care home for Thenue Housing.
CBC has also recently been in talks on potential projects at Hampden Park, the national stadium for Scotland’s football team. In recent years, the firm has completed a £7.5 million new sports complex at St Aloysius’ College and a refurbishment of Toryglen Football Academy for Glasgow Life.
Property Maintenance
CBC Property Maintenance started life in 1994 when it worked for Glasgow University on a 4-year backlog maintenance programme. It has since widened its client base and now also works for housing associations, local authorities and police forces and private clients including JD Wetherspoon and Gala Bingo. It provides a ‘total construction solutions’ service which makes major use of technology, such as hand-held tablet devices.
Property Development
CBC is involved in partnerships with outside businesses to deliver development projects across Scotland. It is part of a jv with North Lanarkshire Council’s regeneration company Fusion Assets and has completed Dundyvan Industrial Park in Coatbridge.
CBC’s development arm also works with a fellow group business, City Link Development Company, a Scottish-based property development and investment company with interests across Scotland. The two have worked together on Glasgow Business Park, off the M8, providing 350,000 sq ft of business space in Govan. Other developments include Linthouse Point, near South Glasgow Hospital Campus.
Stone and Lands
CBC Stone is one of Scotland’s leading stone masonry contractors. It undertakes projects of all sizes and works as a specialist sub contractor but also as a main contractor on specialist projects.
CBC Lands provide landscaping, grounds maintenance and synthetic and natural sports surfaces installation and design services for public and private sector clients across Scotland.
Glenigan Data
Figures from Glenigan point to a busy workload at CBC. They show that the firm has recently secured a place on the city council’s £430 million Glasgow Construction & Infrastructure Framework 2019-22. Glenigan data also shows that CBC is working as the main contractor on a £9.5 million extension at St Mark’s Nursery School for the City of Edinburgh Council. The firm is also working as the main contractor on a £3.8 million Whitburn Partnership Centre for West Lothian Council.
Conclusion: Benefiting from a growing order book
Despite remaining in the red in 2018, CBC is in good shape to take advantage of its completed projects and relationships developed over the years and the company stands to benefit from an improving construction market in Scotland. Its strong brand and reputation across its regional base and some valuable partnering arrangements, particularly on the maintenance side, and frameworks should continue to help sustain the company’s workload. Meanwhile, the company is well-placed to move forward particularly if spending on public sector and infrastructure projects picks up north of the border.
Winning work with CBC
As well as partnering and framework arrangements with clients, CBC also has a number of informal but similar arrangements in place with key supply chain partners.
It believes these procurement routes help sustainability by sourcing local materials and labour, offsite construction and prefabrication techniques.
It has worked on five projects with a BREEAM and operates an environmental management system which is ISO 14001:2004 accredited. The firm also holds OHSAS 18001:2007 certification for health and safety management system and ISO 9001:2008 accreditation for its quality management system. It has also developed an Integrated Management System (IMS) which meets all three standards.
CBC is also a certified Investor in People and a CHAS Accredited Contractor and is registered with the Considerate Constructors Scheme and Constructionline.
Head of Procurement, CBC (Glasgow) Alistair Murray
Tel: 0141 445 4665
Email: alistair.murray@cbc.uk.com
Victoria Coll, Buyer at CBC
Tel: 0141 445 4665
Email victoria.coll@cbc.uk com