By Ian McConnell
Business Editor
ABERDEENSHIRE housebuilding and construction company Bancon Group achieved an operating profit of £1.41 million in the 12 months to March, in spite of losing nearly four months of trading as the coronavirus crisis took hold last year.
And chief executive John Irvine projected a “significant increase” in profitability in the current financial year to next March, citing “exceptionally strong” forward sales in Bancon Group’s homes business.
Bancon Group’s turnover fell to £73.6 million in the 12 months to March 31 this year, from £85m in the prior 12 months.
The group noted this was “as a direct result of the loss of almost four months trading due to the suspension of all trading activities and the associated disruption caused by the pandemic”.
The £1.41m operating profit for the year to March was less than half of the £3.16m posted for the year to March 2020. Pre-tax profit for the 12 months to March this year was £181,729, after interest payments of £579,075 and “Covid-specific” exceptional costs of £650,323.
Bancon Group noted yesterday that it employs more than 240 people.
A spokeswoman said workforce numbers “are down by around 10 due to not replacing people who have left, rather than any redundancies”.
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Bancon Group flagged “record levels” of activity in its timber-frame business, as well as new construction contracts, as it underlined “positive trading and a strong recovery since the easing of lockdown restrictions”.
The group, which is based in Banchory, also highlighted “extremely positive” sales of homes. It noted that, in this division, 75 per cent of the full-year sales targets had been secured only four months into the current financial year.
Bancon Group said it had seen “a marked improvement in sales rates in the north-east of Scotland, where the market has been depressed for several years”.
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It added that three additional developments had been acquired during the year, including its first site in the central belt, at Strathaven in South Lanarkshire. It declared that sales at the Strathaven site were “outperforming expectations”.
Mr Irvine said: “The positive momentum since the easing of lockdown restrictions has continued into the current financial year with exceptionally strong levels of forward sales in our homes business, record levels of activity in timber frame and recent construction contract awards.”
He added: “With the benefit of a full year’s uninterrupted trading, the positive forward sales position and a continuation of our strong underlying trading performance, the group is well-placed to weather the current headwinds regarding materials supply being experienced by the industry and deliver a significant increase in activity and profitability in the coming year.”
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