Fife housebuilder, property developer and contractor Muir Group has reported a sales rise of almost £5 million and profits of more than £2m.
New accounts show the Inverkeithing group’s sales rose to £89.3m for the year to January 2023. This is a 5% increase from its 2021-22 figure of £84.9m.
The family-owned business – which marked its half century this year – also reported pre-tax profits of £2.2m, compared to losses of £4.2m previously.
It said turnover was boosted by a new property development and an increase in contracts delivered by its contracting arm, Muir Construction.
Despite the strong financial results, the group said it, like other companies, was feeling the effects of wider industry challenges.
These include the cost-of-living crisis, planning delays, increased interest rates and higher inflation-driven costs.
Muir Group hails ‘strong’ financial results
Muir Group chairman John Muir 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.”
Mr Muir said the strength of the company was built on its “long-term perspective”. He added that it benefits from a wide range of construction activities.
The accounts show the business employs more than 200 people. Mr Muir praised the “dedicated hardworking team” for their efforts
He added: “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.”
Looking ahead, the chairman said the business was “well positioned” to deliver for “years to come”.
Muir Group performance
Muir Timber Systems showed an improved financial performance, with an increase in contracts won at tender. Turnover for this arm of the business increased by 18% to £9.1m, from £7.6m.
But sales for Muir Construction dropped to £51m, from £53.7m, with pre-tax profits also down to £916,000, from £1.4m.
The group’s housebuilding arm, Muir Homes, saw its sales fall by almost £10m, from £34.8m to £25.1m.
It sold 98 homes through the financial year, compared to 145 in 2021-22. Despite this, the average value per house increased by 6% to £256,000.
The firm said the drop in turnover could be attributed to planning delays impacting the opening of new sites.