Early in the second quarter of 2016 housebuilder Mactaggart & Mickel Group announced that for the year ending April 30 2016, profits were up for the fourth year in a row. The rest of 2016 has been at least as good, says the Group’s chief executive, Ed Monaghan.
"This financial year marked the last in our five year plan which advocated a consistent, medium term approach and sustained focus on improving efficiencies across the Group. It has delivered steady growth, consolidated by this year’s significant upturn in profit.
"We now move into a new phase for the business as we develop our operations not only in Scotland, but in England.
"We have chosen two sites in the south of England for development by our Homes division, with more to follow. This marks a major milestone for the business, and helps fulfil our long-term ambition to expand, taking advantage of wider opportunities for growth.
"We will continue to nurture our Scottish interests and remain firmly committed to growing our presence across Scotland; an intention crystallised by the signing of a new 10 year lease on our Glasgow-based headquarters.
"Diversification remains a priority as we embrace new technology, products and markets. With a strong land bank and clear strategic focus, we are well placed to deliver future business growth."
The group’s Homes division secured a five-star rating for the fourth consecutive year in the Home Builders Federation customer satisfaction scheme, one of only 14 housebuilders in the UK.
Awarded Investors in People accreditation in 2008, the group progressed to Gold in the financial year, an achievement accomplished by only 13.3 per cent of UK companies, and has also achieved Investors in Young People status, with 11 new apprentices recruited and the company also sponsored triple Paralympic swimming medalist Andrew Mullen and Scottish Open Water Swimming champion Mark Deans.
Group profit before tax was up 7.1 pe cent to £10.4 million (2015: £9.8 million) with turnover showing a slight decrease of 4.2 per cent to £65.1 million (2015: £68 million).
The group’s Homes division posted a strong performance against a background of market uncertainty and changes to the Land and Buildings Transaction Tax. Decreased borrowings, the extraction of greater value from sites and increased efficiencies further boosted profit margins, Monaghan commented.
He pointed out that the Homes division delivered a robust performance, increasing turnover to £55m (2015: £48.5m) and profit to £13.7m (2015: £11.6m) with 169 units sold, up just over 15 per cent on the result for 2015. Six new developments were launched in Midlothian, Uplawmoor, Newton Mearns, Howwood and Edinburgh, and three new house types were brought to market.
The firm has also seen great success with its Timber Systems division. "Capital investment has delivered growth, with turnover increasing to £6.3m (2015: £5.4m) and profits breaking the £1m mark as against £800,000 in 2015," he comments. Operating capacity at the factory doubled and the development of a new industry-leading web joist has created efficiencies and bolstered external revenue streams.
The group’s commercial property division held its own, with the 2016 turnover contribution of £2.5 million staying flat with the 2015 figure. The sale of two retail developments impacted rental performance, but brought in cash of £2 million. Monaghan said that proposals were now well in hand for retail sites in Symington and Gilmerton, which will equip the division for future growth.
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