MUIR Group, the contractor, housebuilder and property developer, has seen a further fall in profits in spite of growing revenue in its most recent financial year.

The Fife-based group boosted turnover by 39 per cent to £74.4 million, as activity levels increased in both contracting and private housing, but pre-tax profits slid 8.7 per cent to £4m in what chairman John Muir called “difficult trading conditions”.

Mr Muir said: “It’s encouraging to see turnover increasing significantly across the majority of areas of the business.”

He added: The reduction in development activity reflects continuing issues facing the property market in general, with reduced demand in Aberdeen producing a ripple effect for the north east.”

Housing revenues rose by £5m to £29.9m. Average house prices were £221,000, compared to £195,000 in 2015/2016, with additional sales taking the total number of properties sold to 137.

Development activity halved in the year, with revenues of £4.2m against £8.6m last year. The group said property development for the current year will depend on timing of transactions and market confidence.

Turnover in Timber Systems increased to £4.7m from £3.5m, but a margin squeeze and higher overheads left profits of about £200,000.