Bancon Group hails ‘positive’ momentum and forward sales position

John Irvine and Andrew Tweedie (finance director)

ABERDEENSHIRE-based Bancon Group has reported ‘positive’ trading and a ‘strong’ recovery from the pandemic restrictions after posting its financial results for the year ending 31 March 2021.

Turnover for the period dropped from £85 million to £73.6 million due to the loss of almost four months trading and disruption caused by the pandemic. However, the group still managed to achieve an operating profit of £1.4 million.

Bancon is predicting ‘significant’ growth in turnover and profit for the current year thanks to ‘record’ levels of activity in its timber frame business, new construction contracts and ‘extremely positive’ sales of homes, with 75% of the full year sales targets having already been secured only four months into the new financial year.

Of the group’s three divisions, Bancon Homes is said to have secured a ‘marked improvement’ in sales rates in the north east of Scotland since coming out of lockdown. Three additional developments were acquired during the year, including Bancon’s first site in Scotland’s central belt.

Deeside Timberframe, meanwhile, saw ‘positive trading’ in the second half of the year and boasts a ‘strong’ forward order book and the highest ever levels of activity, Bancon added.

And despite the pandemic restrictions, Bancon Construction delivered a year-on-year increase in turnover and a ‘modest’ pre-tax profit.

John Irvine, chief executive of Bancon Group, 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.

“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.

“We continue to pursue our growth agenda, building on the exceptional performance of our timber frame and construction businesses and the expansion of our homes’ business into the central belt. We are very grateful for the support of our employees, customers, supply-chain and funders which has enabled us to navigate our way through a challenging year and emerge in a strong position for long-term, sustainable, profitable growth.”