Covid-19 hit Perthshire plant hire giant Morris Leslie hard – but pressure on the company can be traced back six months earlier.
Brexit uncertainty had already caused investments to be paused, with lower demand for plant hires and sales.
An oversupply of construction equipment meant more competition and reduced prices.
And then Covid-19 took hold, caused building sites up and down the country to close.
The group’s Sunday market and car boot sales at Errol temporarily shut, as did its vehicles auctions.
Millions lost and 40 redundancies
The financial hit to revenue in March and April last year was an eye-watering £9.2 million.
Newly filed financial accounts show a pre-tax loss of £4.6m in the year to April 30, 2020 on sales of £91.3m.
To protect the company, 40 redundancies were made last summer.
Group operations director Graham Ogilvie recalled: “The challenge at that point was nobody knew what was ahead of us and how quickly things would come back.
“You had to plan for the worst and hope for the best.
“The plant hire business is very capital intensive. If assets are out on hire they are generating revenue. If they are not then you’re paying for them.”
‘Full steam ahead’
Morris Leslie spends millions each year on new equipment, priding itself on its modern fleet. A team of staff resell the machinery around the world.
In the second quarter of last year the company stopped buying completely to save costs.
But then business steadily improved.
“The national housebuilders came back in May which got things moving again,” Mr Ogilvie said.
“July, August… each month got better and since September it’s been full steam ahead.
“The last quarter of the year has been far busier than we forecasted. I don’t think anyone last March would have predicted the position we are now in.
“Demand for houses is so strong at the moment. If we can get out hands on more machines, we will.”
Recruitment starts again with new hires
It has also meant Morris Leslie has been able to hire 15 additional staff this year.
The group expects to spend a record £70m on 1,500 pieces of new equipment this year.
Long supply chain delays means next year’s machinery is ordered – a £75m investment on 2,000 items.
“For the financial year just finished, we made a profit of around £1.5m – a great turnaround,” the operations director said.
“It exceeded everyone’s expectations and we’re on an upward trajectory again.”
Plans for £34m leisure complex
Morris Leslie is also pressing forward on plans to create a £34m leisure hub in West Kinfauns.
The company is hoping to create a four-star hotel, lodge-style cabins, transport museum and retail space.
It projects it will welcome 80,000 visitors a year and support 170 hospitality, retail and leisure jobs.
“(Company founder and chairman) Morris has his heart in this,” Mr Ogilvie said.
“He is desperate for Perth to regain some status.
“At the moment someone coming from Edinburgh to the V&A Dundee might bypass Perth.
“We want to bring something to the area to keep people here and spending money in Perth.”
The firm will submit a planning application next month.
