Macmic reveals 5th consecutive yearly increase in profits

● Mactaggart & Mickel grows profits by fifth as English expansion reaps rewards

Fourth-generation housebuilder Mactaggart & Mickel Group has reported a rise in profits for the fifth year in a row as it expands its operations south of the Border.

The Glasgow-based firm, which was set up in 1925, saw a year-on-year jump of 22 per cent in pre-tax profit to £12.7 million in the year to 30 April, while turnover increased by 14 per cent to £74.3m.

Chief executive Ed Monaghan told The Scotsman that the group is “extremely pleased with the outcome” across the board.

He said its flagship homes arm saw the average house sale value climb to £351,000 from £290,000, with the company attributing this to “the development sales mix and careful targeting of high-quality locations”.

The division also increased turnover by 12.7 per cent to £62m and gross profits rise to £15.1m from £13.7m, with 167 homes sold this financial year compared with 169 in the previous 12 months.

Two developments were launched in Scotland, Red Lion in Newton Mearns and Millerhill at Shawfair in Midlothian.

The group also said continued investment in its English Strategic Land business, which it has operated for about seven years, made a significant contribution to the buoyant annual results.

Land sales to firms such as PLCS for their own housebuilding saw turnover increase to £4.7m from £800,000, “and the natural progression from that on to building ourselves was just a matter of time, so we’ve now established a new business in England, and we’ve got two sites in the pipeline, with more to follow”.

Mactaggart & Mickel said its long-term goal to expand into the English housebuilding market “reached a major milestone this year with the purchase of two sites for development in Oxfordshire, both expected to begin in 2018. This cements the group’s ambition to expand and grow the company before a UK audience”.

Monaghan added: “Realising our strategy to expand into the English housebuilding market has been a significant milestone for the group this year, and this focus will continue in the years ahead.”

He also pointed out the firm securing the Queen’s Award for Enterprise for the Glasgow Commonwealth Games Athletes’ Village.

Mactaggart & Mickel has about 280 staff, and looking ahead expects this to grow to help deliver its targets, particularly in England, over the next few months.

He said there remained future challenges, including planning bottlenecks, but added that this is often due to planning departments not being adequately resourced.

He was optimistic overall, however, adding: “We’re halfway through this year – numbers are remaining strong and we’re a little ahead of our forecast. The group is in strong financial health and the outlook remains positive for 2018 as we broaden our geographical reach and invest in new markets.”