Mactaggart & Mickel Group has reported a 7.1% rise in pre-tax profits to £10.4 million despite a 4.2% decrease in turnover to £65.1 million for the year ended April 2016.
The Glasgow-based housebuilder said its Homes division had posted a “strong performance” against a background of market uncertainty and changes to the Land and Buildings Transaction Tax.
The firm added that decreased borrowings, the extraction of greater value from sites and increased efficiencies also boosted profit margins.
169 homes were sold (up 15% on 2015 figures) while six new developments were launched across Scotland. The Homes division enjoyed an increased turnover of £55 million (up from £48.5 million) and profit of £13.7 million (up from £11.6 million).
In Timber Systems, turnover rose from £5.4 million to £6.3 million with profits breaking the £1 million mark.
The Contracts division reported a reduced turnover of £2.6 million (down from £10.4 million) and reduced profits of £400,000 (down from £3.3 million), which the Group attributed to a change of focus to concentrate on maximising value from Group-owned sites and the completion of the Commonwealth Games Athletes’ Village retrofit.
Turnover of £2.5 million in Commercial Property echoed last year’s figures while profit in this section dipped to £500,000 from £700,000.
In Lettings, income dropped slightly from £3.4 million to £3.3 million while profits were £2.3 million (2015: £2.4 million).
Chief executive Ed Monaghan said, “This financial year marked the last in our five year plan which advocated a consistent, medium term approach and sustained focus on improving efficiencies across the Group. It has delivered steady growth, consolidated by this year’s significant upturn in profit.
“We now move into a new phase for the business as we develop our operations not only in Scotland, but in England. We have chosen two sites in the south of England for development by our Homes division, with more to follow. This marks a major milestone for the business, and helps fulfil our long term ambition to expand, taking advantage of wider opportunities for growth.
“We will continue to nurture our Scottish interests and remain firmly committed to growing our presence across Scotland; an intention crystallised by the signing of a new 10 year lease on our Glasgow-based headquarters.
“Diversification remains a priority as we embrace new technology, products and markets. With a strong land bank and clear strategic focus, we are well placed to deliver future business growth.”
