Family-run property developer and contractor Muir Group PLC has just announced its financial results for the year 2021/2022, ahead of its 50th anniversary. The results showed an increase in turnover on the previous financial year by nearly £22 million.
Despite a challenging time for the whole sector, including margins being squeezed and chronic skills and labour shortages, the group reported a pre-tax loss of £4.3 million as it restructured the revenue profile at Muir Homes. On the other hand, Muir Construction reported a turnover increase of £7 million, compared to last year’s. Main contributors to the positive news was the prompt completion of business facilities in Glasgow, as well as the M8 central belt.
“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,” said John Muir, Chairman of Muir Group.
“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.”
Indeed, Muir Homes reported a loss for the financial year, because of issues such as expected margins on current sales and a more challenging property market in the North East. However, Muir Timber Systems had a busy year, turnover increasing by £3 million, reflecting the return to normal production following removal of restrictions post-COVID and increase in external sales.
After a thorough review of the business, Muir Group will be focusing on diversifying and balancing its portfolio of housing developments throughout Scotland. 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.
“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,” added John.
“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,” he concluded.
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