Mactaggart & Mickel Group has announced a 21% rise in profits to £9.8 million for the year ended 30 April 2015. Group turnover is up 16% to £68 million.
The results maintain its strong performance from 2014 which saw the Group return to pre-recession profit levels. An ongoing focus on growing income from external markets through each of its divisions has paid dividends with profits increasing across these business units, while the Group’s flagship Homes business continues to deliver robust returns.
Operational highlights include:
- Homes – Homes remains the cornerstone of the business contributing turnover of £48.5m (2014: £44m). Forward sales of 82% have been secured in the current trading year.
- Timber Systems – Turnover increased to £5.4m (2014: £4.3m) as the division strengthened its management team and improved productivity through further capital investment in its manufacturing facility. Contract wins with new and repeat residential and commercial property clients secured a healthy order book.
- Contracts – Reduced turnover of £10.4m (2014: £13.3m) as the division completed the retrofit of 225 units at the Commonwealth Games Athletes’ Village. Several ongoing social housing contracts and a focus on growing its external customer base have resulted in a comfortable pipeline of contracts for the current financial year.
- Commercial Property – An annual profit of £0.7m represents a substantial increase on the previous year (2014: £0.4m) with overall asset value of £5.8m. The Group completed the sale of its first commercial property development at Dalkeith for £2m marking a significant milestone.
- Lettings – Income totalled £3.4m (2014: £3.3m) and overall asset value of £60m. Underperforming assets were disposed of to fund a reinvestment strategy outwith Scotland.
- Strategic Land – Investment of £0.8m across the year grew the company’s English landbank to morethan 1,310 acres across 20 sites. Three planning applications were submitted in Scotland, for 423 units, and over 1,460 units were secured from greenbelt near Bath, Gloucester and Liverpool. The first English land sale was also settled, to Persimmon Homes at Shavington, Cheshire.
Chief executive Ed Monaghan said, “This year marks our 90th in business and the fourth of our five year plan. We have consolidated last year’s outstanding performance with another period of growth and improved profitability. While we have seen footfall and sales at our sites increase, like every other housebuilder, we have been watching with interest the situation with the scheme that is set to replace Help to Buy (Scotland). The original initiative was a real boost to the industry when it was introduced but we saw it fully subscribed in just a few months this year and we await with interest the detail around the new scheme.
“Our other business units have now established themselves as profit centres with milestones including our first land sale in England and our Commercial Property division’s first development sale. The focus now is on growing income from external sources to ensure we are fully exploiting our skills base and capabilities.”
Mactaggart & Mickel Group was named Employer of the Year at the 2015 Homes for Scotland Awards.