SCOT JCB, the Glasgow-based plant machinery firm, has highlighted upbeat sentiment among customers in the housebuilding and farming sectors as it reported an eight per cent profits hike, while declaring its confidence that “life will go on” after Brexit.
The boss of the JCB dealer, which operates across Scotland and the North of England, delivered a bullish verdict on the prospects for the company and its clients as new accounts revealed it made a profit of £4.1 million in 2016. That came as turnover dipped to £119.1m from £124.6m the year before, the accounts show.
Steve Bryant, managing director of Scot JCB, declared that the companies it sells plant equipment to in the housebuilding sector are inundated with work.
“The mood with anyone who is involved in housebuilding is very good,” Mr Bryant said. “Housebuilders are flat out. A lot of our customers are involved in housebuilding, whether they are ground works contractors are whatever, and all these guys are very busy. They are flat out, building as much as they can.”
Mr Bryant, whose firm invested in a new purpose-built depot in Dumfries over the period, was equally confident over sales to the agriculture sector. He said Scot JCB, which generates about 25 per cent of its sales from the sector, detected an “upbeat” mood among farmers at the Royal Highland Show this summer. That was in spite of widely reported concerns in the farming community over the potential effects of Brexit.
Mr Bryant said: “Most of them believe that a [Brexit] deal will be done. Most of your large farmers believe a deal will be done and life will go on, and it will. That is our view too.”
He added on the mood among farmers: “In no way is it a negative picture. The fact is we are one of the biggest suppliers of plant machinery in Scotland, and things are pretty good.”
But Mr Bryant said the mood among that plant hire specialists, which buy machines from Scot JCB to lease to contractors, was less upbeat. Some are reporting a downturn in activity in the central belt due to major projects coming to an end. “They are working very hard to keep the utilisation going,” Mr Bryant said.
The plant chief noted the company is planning further investment in its 12-strong depot network this year. Mr Bryant said £4.5m will be invested in a new depot in Sighthill, Edinburgh, from where Scot JCB will serve the central belt. Plans are also in place to move into new products, such as access platforms and scissor lifts. “You can never stand still,” Mr Bryant said.
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