OGILVIE Group has posted what it called a "healthy" 33 per cent increase in pre-tax profit for the year ended June 30, which it said came on the back of an "excellent" performance by its fleet business, and backed by "real signs" of market recovery in construction, housebuilding and surveying.
The vehicle hire and construction company, based in Stirling, said pre-tax profit increased to £4 million from £3m in the year-ago period.
Chief executive Duncan Ogilvie described the increase as "solid," and it was buoyed by turnover jumping by 17 per cent from the prior 12-month period to reach £210m.
The family-owned group, which has about 400 staff, also said it agreed a five-year revolving credit facility with its bank Barclays, which will provide funding to progress all areas of the business.
Further to this, a securitisation funding facility with HSBC for vehicle leasing and management unit Ogilvie Fleet will back the company in its strategy to grow the fleet to 20,000 vehicles, having increased to 11,500 in the year to June.
Additionally, the group said its fleet division capitalised on a "sustained buoyant used car and van market, with a well-managed vehicle disposal policy".
Looking at the new funding arrangements, Mr Ogilvie said they "reflect the strength of the group's track record and will support continued consolidation and growth in the markets where we operate".
Turning to Ogilvie Construction, the group said it expects considerably improved turnover and profitability in the coming year.
However, while its turnover grew, profit fell, and this was seen as highlighting further pressure on construction sector margins in the 12-month period.
The group also said its construction division recently won various public-sector works, plus major private-sector projects, most notably regarding the hotel, leisure and student accommodation areas.
In July, Ogilvie Construction said it had broken ground on a £10.5m project to build Brimmond School in Aberdeen. The same month it announced that it had secured three contracts to build Farmhouse Inn restaurants in Glasgow, Edinburgh and Dundee.
The group also looked at the impact of the Help to Buy shared-equity scheme, saying it "stimulated impetus for Ogilvie Homes, improving mortgage availability, which is expected to reinvigorate the market again when it is re-introduced in 2015".
Looking at demand for new homes, the firm said this remains strong, and it continues to win contracts with housing associations and local authorities for the supply of affordable housing.
As for Ogilvie Communications, this experienced a "challenging" year after losing a strategic supplier. "However a restructuring of the sales team, along with diversification into new products and services is expected to bring the company into profit again quickly," the group said.
In April the group boosted its surveying business, Loy Surveys, by buying Longdin and Browning (Surveys), which were rebranded to trade as Ogilvie Geomatics.
Considering the strategy of the group, which started out in 1953, Mr Ogilvie said: "Across all of our operations we have an absolute focus on delivering quality products, backed by the highest standards of service.
"We continue to achieve this through sustained investment in our people, ensuring a workforce that is motivated to always do their best for customers."
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