MURRAY Capital Group, Sir David Murray’s family business empire, has increased profits 46 per cent in a year which left the company with cash in the bank and on the hunt for new investment opportunities.
The group, which is chaired by Sir David, made £19 million profit in 2015 compared with £13m in the previous year helped by the sale of its majority stake in Brand Rex, the Fife-based cable manufacturing business.
The sale of Brand Rex to Leviton of the USA left Murray Capital with net cash of £23m at 31 December, compared with net debt of £15m at the end of the preceding year.
Sir David did not comment on the group’s results. The Murray Capital Group website says the former Rangers owner continues to play a leading role in the business.
His son David D Murray, an executive director of the group, said the results reflected the family firm’s carefully-planned strategy of identifying, developing and then maximising outstanding investment opportunities.
He said the group’s immediate and priority focus will be on its Murray Estates business, which holds strategic land assets across Central Scotland.
The group acquired Murray Estates from Sir David’s Murray International Holdings business in 2014 in an arm’s length £13.9m deal.
Murray International Holdings was wound up last year owing Lloyds Banking Group £200m after debt write-offs of £268m.
David D Murray said: “We are continuing to invest heavily in these assets and, importantly, we are doing so from our own financial resources.”
He added: “We are encouraged by the progress being made on several key developments and believe we are moving towards completion of the first stage of the potential realisation of this significant portfolio.”
Murray Capital noted North Lanarkshire Council had approved a local development plan that includes part of its Holytown site, on which there is capacity for 689 homes.
City of Edinburgh Council’s planning committee has said it is minded to grant permission for the first phase of the company’s Redheugh’s Village suburb development.
While the Scottish Government has called in the application, Murray Capital is confident regarding the progress and potential of the site.
Mr Murray said the group’s metals business had improved profitability in 2015 helped by an increasing steel price.
Murray Capital owns the speciality plates and steels business which was sold by MIH for £14m in 2014.
Mr Murray said: “In many ways, these are uncertain financial and economic times. However, from where we sit as a family office, we are looking to the future with great confidence.”
He added that he is scanning the horizon for new investment opportunities. These will typically be in the £1M to £10M bracket, but the group may look at bigger deals.
Murray Capital’s investment portfolio also includes the Capito IT services business.
Sir David began the process of winding up Murray International Holdings in January 2015 following a six-year process of restructuring and disposing MIH assets to pay down bank debt.
The group was hit by the collapse of the steel and property markets after the financial crash of 2008.
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