MUIR Group has reported a near £22 million increase in turnover in its financial results for the year 2021/2022.
As a result of challenges facing the whole sector, including ‘margins being squeezed and chronic skills and labour shortages’, the group did, however, report a pre-tax loss of £4.3 million as it restructured the revenue profile at Muir Homes.
Muir Construction increased turnover by £7 million, driven by completion of business facilities in Glasgow and M8 central belt, on time and ahead of schedule. The business saod the order book looks ‘healthy’ for the coming year.
Muir Timber Systems increased turnover by £3 million, reflecting the return to normal production following removal of pandemic-related restrictions and an increase in external sales.
Muir Homes increased its turnover by £12 million, despite results being ‘significantly impacted’ by the pandemic. The group said that issues identified in assessment of expected margins on current sales and a more challenging property market in the north east all contributed to a loss for the financial year.
Following a review of the business, the group is said to now be focused on a ‘more diversified and balanced’ portfolio of housing developments.
Muir Homes is currently active on seven sites across the country with the aim of creating several hundred new homes, assisted by new sites opening in the coming year.
Property development within subsidiary company, Hermiston, delivered Amazon’s first bespoke last mile delivery facility on a 19-acre site at Glasgow Business Park at Springhill Parkway. This, the group explained, will be included as a ‘significant asset’ on the balance sheet with ‘substantial revenue’ accrued through rental income.
Overall, Muir Group retains cash balances of £16.8 million and net assets of £86.7 million. The family business is due to celebrate 50 years in business next year.
John Muir, chairman of Muir Group, said, “We have a dedicated team working hard in very difficult and challenging times. The pandemic is over, but its legacy continues with price increases in raw materials, delays in the supply chain and a significant lack of skilled labour to support the construction sector.
“Despite all these challenges and more likely in the coming years, Muir Group is well positioned for the future. We have made difficult decisions, particularly in rebuilding our revenue profile within Muir Homes and positive it will show healthy profit for future years.
“Looking ahead, to our 50th year in business next year, we see opportunities for the group with construction, homes and property development working on major new projects alongside our Amazon business park continuing to provide revenues.
“The construction industry in Scotland is flat out trying to regain lost ground and we are having to overcome these difficult conditions. Our increase in turnover, healthy cash balances, property and land assets put us in a good place to compete and contribute positively to Scotland’s economic recovery.”
