Lower north east activity hits Muir

Fife housebuilder and construction contractor Muir Group plc saw profits edge lower in the past year.

Newly filed accounts at Companies House show the Inverkeithing-based group booked a £4 million pre-tax profit in the year to January 29, down from the previous year’s £4.38m return.

The reduction came despite a significant hike in turnover from £53.77m in 2016 to more than £74.7m in the latest financial year.

The near £21m uplift saw the contractor claw back some of the ground it lost in 2016 when the construction division won fewer contracts than anticipated and its developments unit was up against an “exceptional” performance in the prior year.

The combined impact was a £57m fall in revenues in financial year 2016.

In his strategic report, finance director John Watt said: “The increased turnover was principally derived from construction activities, along with a steady growth in housing activity offset by a decrease in development activity, principally in Aberdeen.”

After suffering a £950,000 loss in 2016, the group said Muir Construction had returned to the black with a £400,000 pre-tax profit for the year.

Private housing revenues grew by £5m to almost £30m, timber systems sales rose by £1.2m to £4.7m while the leisure unit remained flat at £1.6m.

The one negative from a revenue perspective was the property development unit which saw turnover fall from £8.6m last year to £4.29m.

Group headcount edged up slightly from 270 to 276 during the year.

Group chairman John Muir said the results were “very positive”.

“The reduction in development activity reflects continuing issues facing the property market in general, with reduced demand in Aberdeen producing a ripple effect for the north east,” he said.

“Looking forward, the group is seeing positives in improved management in construction, housing and leisure to meet changed market conditions.

“Overall, group profits remained on £4m before tax, which was a very credible performance in difficult trading conditions.”

A Muir development at Silverdykes, Anstruther.