Fife-based construction, property and leisure firm Muir Group has returned to profit after racking up the first loss in its 40-year history in 2012.
Accounts filed at Companies House yesterday showed the family-owned firm made £2.86 million in the year to February 3 a major uplift from the £1.12m loss posted a year earlier, when the business plunged into the red after being forced to swallow a £4.5m write-down with joint-venture partner Scarborough Group on the value of land at Rosyth waterfront.
Overall group revenues also climbed £4.6m in the period a significant improvement, but only a partial recovery of the almost £11m fall in turnover seen during 2012.
“Turnover increased by 7.5% to £66.62m, principally because of increased house sales,” a spokesperson for Muir said.
“This was a combination of improved private house sales and some social housing contracts in Anstruther and Montrose. Activity in general construction, property development and other activities was marginally down.”
The Inverkeithing firm sold 135 properties in the 12-month period 55 more than it managed in the year previous for a total transaction value of £21.93m.
The figure was £7.8m ahead of that achieved in 2012 despite a drop in the overall average property sale price from £175,000 in 2012 to £162,460.
Muir’s property development arm, which provides office units and commercial and industrial space for businesses, saw revenues reduce from £5.86m in 2012 to £4.71m this year but profits swung from a £1.92m loss in 2012 to a £1.55m profit.
However, the firm’s contracting division had a much more difficult period, with turnover dropping back from £37.82m to £36.78m and profits slashed to just £2,000.
Despite the fall, a spokesman said it was a positive outturn for the division.
She said: “Contracting made a small profit of £2,000, down from £466,000 previously which, given the fiercely competitive nature of the tender market, was a considerable achievement.
“Property development also returned to profitability, after last year’s write-down in the joint venture investment at Rosyth dragged the group into an overall loss.”
The company employed 276 staff at the year end, 16 fewer than a year earlier. Total staff costs remained almost flat during the year at £10.34m.
Total directors’ remuneration increased in the period from £499,000 to £861,000, including an £88,000 uplift to £218,000 in the overall package paid to the highest earning director.
Muir also completed a £1.82m deal in May to buy its joint-venture partner in the Stockland Muir group, and said it was now focused on developing new opportunities.
The spokesperson said: “The group remains in an excellent position with an increase in cash held to £11.94m at the year end.
“Since then Muir has also bought out the Stockland shareholding in its joint venture in Aberdeen and has signed two development deals for this site, one of which is currently under construction.
“The focus remains on progressing major planning applications at Blairs and Loirston near Aberdeen and Forrestmill in Clackmannanshire.”