STEWART Milne Group has underlined its growth ambitions although the oil price plunge has posed challenges in its north east heartlands.
The Aberdeen-based company announced that it had secured a £185 million credit facility from Bank of Scotland, which it described as a key element in its strategy to achieve growth over the long term.
The funding will support the company’s plans for geographic expansion. These are intended to increase its presence in areas such as Central Belt Scotland and North West England.
The expansion will reduce the company’s reliance on the housing market in Aberdeen where Stewart Milne founded the business in 1971.
In April the company said it had been experiencing challenging trading conditions in the North East Scotland Market as a result of the significant fall in the oil price.
Mr Milne said then the group was trying to rebalance its land bank with more sites in Central Scotland and North West England.
The group said yesterday its expansion plans were supported by the overall strength of the housing market.
Other housebuilders have said in recent weeks that the market is in good shape.
Last month the Miller Homes boss Chris Endsor said the housebuilding giant had seen no impact from the Brexit vote on sales in Scotland.
Miller is targeting significant growth in Scotland over the next three years. The group’s Scottish business is focused on the Central Belt.
The chief executive of Stewart Milne Group, Glenn Allison, highlighted the success of efforts by the UK and Scottish governments to support the housing market by providing low cost funding for buyers.
“The Government help to buy schemes in England and Scotland have played an important role in helping consumers to buy affordably and will continue to play a role in the coming year,” he said.
Mr Allison noted that Stewart Milne’s timber frame business has benefited from the strength of the housing market. Stewart Milne Group made £5m pre-tax profit in the year to 30 June 2015, up from £3m in the preceding period.
She group had £201 million loans outstanding at 30 June 2015 under a facility due to expire last month.
It has not disclosed results for the year to June 2016.
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