Strong performance for Scotia Homes as turnover increases

An Aberdeenshire-based housebuilder that is extending its reach into Angus has recorded a 9% increase in pre-tax profits.

Scotia Homes saw turnover increase from £35.1 million in 2018, to £35.4m for the year ending April 30 2019.

Pre-tax profits rose from £3.2m to £3.5m in the period despite “difficult” trading conditions across Scotland.

Managing director of the Ellon headquartered firm, Martin Bruce, said: “The local market in Aberdeen and north-east Scotland remains difficult as we are now in year five of the oil and gas downturn.

“The uncertainty surrounding Brexit and other political events have undoubtedly also impacted the housebuilding sector and confidence remains fragile.

“We have the ability to adapt to market conditions and mindful of the continuing volatility, we have adopted a prudent approach, and are aligning overheads to ensure sustainable long-term profitability.”

Mr Bruce added that although there had been transactional recovery across Aberdeen and the north-east residential market, house prices had continued to fall during the year, with residential property agents predicting further price reductions in the coming 12 months.

Employee numbers remained fairly static across the period, rising by three to 213, with 107 staff employed in production and 106 in administrative roles.

The bill for salaries and associated costs rose by 5.4% to £8.5m during the period.

Scotia Homes chairman, Gary Gerrard said: “Scotia’s consolidated balance sheet is strong with net assets having increased to £28.6m and there was no bank debt outstanding for the fourth consecutive financial year end.”

The firm has current and future developments in a number of areas including Inverness, Nairn, Elgin and Peterhead, but has also extended its reach into Angus and the Mearns with developments in Forfar, Brechin and Laurencekirk.