Perth builder and engineer sees pre-tax profits spike

INDUSTRY: I&H Brown ‘confident’ for 2017 after civil engineering unit leads growth

Perth developer and civil engineering group I&H Brown achieved significant growth in revenues and profits last year.

Newly published accounts at Companies House show the group – founded more than 50 years ago by brothers Ian and Hardie Brown – generated income of £72.54 million in the year to August 28, up by almost £18m on the £54.6m return of the prior year.

Pre-tax profits also spiked in the year, up from £2.1m in 2015 to £6.54m in the year just past.

The group has diversified operations spanning civil engineering, energy, property development, plant hire and land management, with the latter unit looking after farms and estates across Scotland that collectively run to more than 10,000 hectares.

Managing director Scott Brown said it had been a strong year for the group with the civil engineering division leading the way.

“The directors are pleased to report that the group’s considerable increase in turnover has been achieved at an acceptable overall gross margin year on year,” Mr Brown said in his strategic report to the accounts.

“The group has seen significant growth in the civil engineering and remediation sector and this has been accompanied by pressure on resources.

“Strong management and an excellent reporting and control environment remains essential.”

Brown’s property business also made “good progress” during the year.

“Projects in Fife, East Lothian and Falkirk have progressed and we are pleased to see the housing market showing continued growth,” Mr Brown said.

“Construction work has continued at our Dunfermline site and we anticipate a national housebuilder being on site shortly after infrastructure is in place.”

While growth was strong, the group’s energy unit did suffer a setback during the year when it was forced to stop work on its 20MW North Calliachar windfarm scheme as a result of the withdrawal of certain Governmentbacked subsidies.

However, Mr Brown said the directors were satisfied with the result for the year and were confident on the firm’s prospects for 2017.

He said: “We expect our market to be challenging but, with a higher volume of work, we expect margins to improve and good opportunities to arise.”

The group’s extensive portfolio of works include land preparation ahead of the Commonwealth Games in Glasgow in 2014 and earthworks to support the extension of the Glenlivet Distillery in Speyside.

Picture: Mhairi Edwards. I&H Brown, based at Dunkeld Road, Perth, saw its pre-tax profits rise from £2.1m to £6.54m.