CIVIL engineering and building firm RJ McLeod has reported a dip in profits in spite of a 26% increase in its turnover.
The Glasgow business saw turnover grow from £65.8 million to £83.8m in the 12 months to October 28.
However, according to accounts filed at Companies House, pre-tax profits slipped 17% from £6.21m to what the company described as a "healthy" £5.14m.
The directors said stability had returned to turnover during the year but the "civil engineering and building marketplace at present remains a very competitive environment".
Bruce Clark, joint managing director, said: "We are pleased to report a good set of results for year ending October 28, 2012.
"Once again, the company's success is down to the experience and expertise of the staff and workforce. The profit of £5.14m equates to a 6.2% margin which stands well in the industry.
"With the high standard of employees, simple management structure and continued financial prudence, we are confident that, despite the market continuing to harden, a successful year's trading will be achieved this year."
All of RJ McLeod's work in the 2012 financial year originated in Scotland and took place across sectors such as marine, energy, infrastructure, waste and roads.
During the year it secured work on the Helix regeneration project near Falkirk, which included building a lagoon for water sports, more than five kilometres of paths, family play areas, an outdoor events area, a cafe and wildflower meadows.
It also built wind farms on behalf of energy giants such as EDF and SSE.
Raw material costs in the financial year accelerated 54% from £12.8m to £19.7m while other external charges rose 47% from £26.4m to almost £39m.
Investment in plant and transport costs rose from £2.9m to £3.5m.
The company's net funds grew from £24.2m to £25.5m
Writing in the accounts, the directors said: "With no borrowings the company remains on a strong financial footing.
"Once again the plant and transport necessary for the day-to-day activities has benefited from substantial investment ... and the con-tinued procurement of new plant and transport to re-inforce the fleet remains an ongoing board policy."
Average staff numbers ticked upwards from 386 from 389 although employee costs fell from 18.1m to £17.7m. Directors' remuneration went down from £1.89m to £1.6m with pension payments steady at £195,244.
The highest-paid director saw their rewards decline from £551,369 to £477,417.
An interim dividend of £2.50 per share was declared during the year resulting in more than £2.36m being paid out.
According to the accounts Bruce Clark and Graeme Clark received £529,300 each, Alexander Osborne was given £325,895 and Norman Judd received £248,375 from the dividend.
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