The Press and Journal (Aberdeen and Aberdeenshire)
Scotia Homes gets ready for growth
North-east housebuilder Scotia Homes is planning further expansion into markets in the Highlands and Tayside amid signs of homeowners wanting a post-lockdown move.
Managing director Martin Bruce said the Ellon-based firm already had a substantial landbank but was also looking for more sites to meet an anticipated jump in demand for country living.
“We have seen strong recovery in sales volumes and prices at our developments in the Highlands and Tayside,” he added.
The company has also announced the appointment of a land and development director, Graham Reid, previously Aberdeen-based regional development director with Savills, to play a leading role in driving future growth. He is now responsible for Scotia’s land acquisition strategy, as well as its affordable housing delivery, product development and new home designs.
Mr Reid said: “Whilst the economic conditions remain challenging, Scotia has weathered the storm extremely well and is one of the strongest privately-owned housebuilders in Scotland.”
Scotia chairman Gary Gerrard said the “wealth of experience” of the new addition to Scotia’s boardroom team would be “invaluable to the business as we continue our growth strategy”.
The firm aims to double its annual new-home completions to 350 over the next three years, fuelled by recent acquisitions of development sites in the Cairngorm National Park and Perthshire/ Angus areas.
Scotia has current and future developments in Aberdeen, Arbroath, Aviemore, Blairgowrie, Brechin, Ellon, Forfar, Inverkeilor, Inverness, Kingussie, Kintore, Nairn, Newburgh, Oldmeldrum, and Perth.
Accounts just lodged at Companies House reveal the impact of Covid-19 on the business during the 14 months to June 30 2020.
Pre-tax losses came in at £13.1million, compared with profits of more than £3.5m in the previous 12 months. Turnover for the latest period totalled around £37m, against £35.4m in the 2018-19 trading year, but was down by 10% on an annualised basis. Results were also impacted by a £13.6m write-down on the value of Scotia’s landbank and work-in-progress, against a backdrop of the pandemic and a collapse in oil prices.
Scotia was forced to put nearly all its workforce on furlough and make 29 people redundant last year, but head count is now back up to the pre-pandemic level of about 190.
Mr Gerrard said the firm’s balance sheet was strong, with net assets of £17.2m, bank debt of £5.74m, at year-end, as well as “substantial headroom” available to support growth.
Mr Bruce, who founded Scotia in 1990, together with his late father, Bill Bruce, said: “Since our financial year-end, our sales performance has been much improved as lockdown has encouraged customers to prioritise moving home, placing increased importance on outdoor space and additional rooms for homeworking.”
Scotia – previously controlled by the Bruce family – is now owned by Camlin Group, a joint venture of property entrepreneurs Bruce Linton and David Cameron, who acquired the business last year for an undisclosed sum. The size of Camlin’s majority stake was also undisclosed.