MUIR Group PLC has reported a pre-tax profit of £2.2 million in its financial results for the year 2022/23.
The business, which is marking its 50th anniversary this year, has also reported a 5% increase in turnover to £89.3 million – up from £84.9 million a year ago.
The firm said turnover was boosted by a new property development project coming on stream and an increase in the number of external contracts delivered by the group’s contracting arm, Muir Construction.
While the group maintains a ‘very stable’ financial footing, Muir admitted that, like many companies within the sector, it is feeling the effect of wider industry challenges impacting other areas of the business, including cost of living, planning delays, higher interest rates and higher inflation-driven costs.
Muir Timber Systems reported an 18% increase in turnover from £7.6 million to £9.1 million.
Turnover at Muir Construction dipped slightly from £53.7 million to £51 million, with pre-tax profit recorded at £916,000 compared to £1.4 million in the previous 12 months.
Muir Homes, the company’s housebuilding arm, reported a reduction in turnover for 2023 to £25.1 million (2022: £34.8 million). Private housing sales declined with 98 houses sold within the financial year compared to 145 in the previous year. Despite this, average value per house increased by 6% to £256,000.
Lower turnover for Muir Homes was attributed to planning delays impacting the opening of new sites and delivery of ‘much needed’ housing. Inflationary increases in material and labour costs, coupled with mortgage interest rates, are said to have made this part of the business ‘challenging’.
John W Muir, chairman at Muir Group, said, “We are pleased to mark 50 years in business with a strong set of financial results overall. Despite the challenges across the wider construction industry and the weakening of the housing sector, we are pleased with our strong balance sheet and profit return.
“As we celebrate this milestone year, we have renewed our focus on delivering a pipeline of high quality projects on time and on budget. We are a strong, independent family organisation with a diverse range of activities. This helps Muir Group to be robust regardless of the economic cycle and challenges. The strength of our company is built on our long-term perspective, a wide range of construction activities and our dedicated hard-working team.
“We are continuing to operate in a significantly challenging environment compared to previous years. In addition to planning delays and inflationary cost increases for material and labour, the rising cost of living and high mortgage interest rates remain challenging for our business and the industry across the board.
“With a profitable return and a strong net asset position, Muir Group is well positioned to deliver for our customers, partners and stakeholders for years to come.”
