SCOT JCB, the construction and farm machinery supplier, has underlined its confidence in the prospects for the economy after achieving record sales in the latest year.

Finance director Stephen Barker said the company has been profiting from strong demand in the housebuilding and wider construction markets, with no sign that the Brexit vote has impacted on activity in these.

“When you look at the UK economy … if you look at housebuilders they seem to be really rocking on at the moment,” said Mr Barker.

Privately-owned Scot JCB believes the prospects for the construction market are good given the need for new homes and improvements to the transport system.

“Brexit’s an issue but we’ve still got to build houses, roads and other infrastructure,” he said. “I think on that side demand is going to be there.”

While he said the vote for the UK to leave the European Union had led to some hesitation in sections of the farming community, Mr Barker noted the company has not had any orders cancelled.

Scot JCB has found some farmers regret the Brexit vote, for fear that it will result in the loss of subsidies. However, others are pleased about the prospect of the UK regaining control over agricultural policy.

The company, which is majority owned by Steve Bryant, expects to maintain the value of farming sales in the current year and to grow business in the sector in future years.

“People have got to eat, fields have got to be ploughed,” noted Mr Barker.

He said the fall in the value of the pound since the vote in June could result in cost increases in the supply chain. However, many of the products the company sells are manufactured in England by JCB, whose chairman Lord Bamford favoured Brexit.

Sales of second hand products overseas will be boosted by the fall in the fall in the value of the pound. This represents only a small part of the business.

Mr Barker said Scot JCB is well placed to grow sales and profits in coming years given expected market conditions.

The company increased sales to £125 million in 2015, from £117m in the preceding year.

It said the increase reflected growth in market share and the upturn in the economy during the year.

Growth came from all areas of the business, especially housebuilding.

“Whilst the farmers have been under pressure from high costs and lower selling prices, we have seen strong demand for Loadalls and for the new JCB 4000 series tractor,” said Scot JCB.

Pre-tax profits dipped to £3.8m in 2015, from £4m. The company said profit margins were squeezed amid tough competition for business.

Its interest bill doubled to around £400,000, reflecting the investment the company made in buying stock on attractive terms in 2014 to meet demand.

The average monthly number of employees increased to 231 from 213. This was partly due to the acquisition of the Kelso & Lothian Harvesters agricultural machinery dealer in 2014, which showed the company believed in the long term prospects for the farming market.

Scot JCB recruited an additional six service engineers in 2015 to cope with demand. It has 31 apprentices.

Mr Bryant led a £5m management buyout of Scot JCB from the former Hewden Stuart in 1998.

The highest paid director earned total emoluments of £298,000 in 2015, up from £293,000.

The company paid dividends totalling £557,000 in line with the preceding year.