Stewart Milne on rebound after year of solid progress

● Housebuilder targets central Scotland and north-west of England in year ahead

Stewart Milne Group today reported a return to growth after a “strong” trading performance last year.

The Aberdeen-based firm, which also runs a timber frames business, pointed to a “slight recovery” in its home market in the North-east as it said it would continue to focus on investing in new developments in central Scotland and the north-west of England.

Results for the year to the end of June reveal that the group increased turnover to £240.5 million from £209.2m while operating profits grew from just £600,000 to almost £7m.

The firm – which is chaired by its eponymous founder, who is also the chairman of Aberdeen FC – continued to dispose of non-core assets, in order to fund increased investment in new developments.

These actions amounted to exceptional charges which resulted in an overall loss before tax for the year of £13.7m, compared with £26m the previous year.

Glenn Allison, chief executive of Stewart Milne Group, said: “The strong trading performance reflects the success of our strategy to broaden our portfolio and footprint by investing in parts of the country where the demand for homes continues to rise.

“The exceptional performance of our homes business in north-west England has resulted in a doubling of both the number of units delivered and of our turnover in the region. Our increased investment in land in central Scotland has seen a higher number of new award-winning developments, which provide a strong platform for even further growth.”

Turnover at Stewart Milne Timber Systems was up by £7.3m to £59.4m as a result of rising demand across the country’s housing market as a whole and the development of strategic relationships with UK housebuilders. The division has also invested in “innovation and digital technology” to develop its off-site construchousebuilder tion systems. Across the wider group, Stewart Milne employs some 800 people in Aberdeen, Edinburgh, Glasgow, Manchester and Oxford.

Allison added: “Our overall confidence in the recovery in the North-east housing market is exemplified by our flagship development at Countesswells. This £1 billion investment in a whole new community, in a sought-after location to the west of Aberdeen, is really taking shape.”

The group has agreed a new three-year, £175m banking facility with Bank of Scotland.

Stuart Macgregor, group finance director, said: “The extension of our banking facility and our strong trading performance underpins our strategy, and the decisions we have made to invest in areas with the greatest potential for growth.

“We will continue to focus on investing in developments in central Scotland and northwest England. The signals now point to a slight recovery in the North-east market, and our focus will continue to be on providing family homes where demand has remained relatively stable.”