Major Scottish construction firm Morris & Spottiswood, which operates from Perth, expects to grow its sales this year after securing several new blue-chip clients.
The firm works in a number of different market sectors including refurbishment, new build housing, development, mechanical and electrical services and flooring.
Newly published accounts for the year ending December 31 2018 show sales rose to £82.4 million last year, from £80.8m in 2017.
Pre-tax profit before exceptional items was recorded at £2m, down from £2.3m in 2017.
The Glasgow-headquartered firm, which operates from six locations in the UK, also took an £823,000 impairment on the value of its Edinburgh office.
“Morris & Spottiswood Limited delivered another strong financial performance during the year, with turnover up 2% on 2017, although profitability fell slightly compared to last year, when we closed out several key contracts,” the firm said in its strategic report.
“This was against a backdrop of continuing uncertainty and volatility in the market place, with a lack of clarity over Brexit resulting in clients being cautious about their spending.
“Longer term opportunities are both limited and very competitive, with downward pressure on margins still being experienced.
“Inevitably this will continue for a period of time, with a wider impact on the sector potentially impacting future performance.”
The firm said its reputation for a high quality end-to-end service had helped it secure several new “blue-chip” clients during the year.
Morris & Spottiswood anticipated its turnover to grow modestly this year.
“The company continues to benefit from a number of established customer relationships and a reputation for providing a high quality end-to-end service and this helped secure a number of new blue-chip clients during the year,” the firm added.
“A full strategic review of the markets which the company has historically targeted was carried out during the year, together with diversifying into new markets, with a view to ensuring continued and longer term expansion of the customer base.
“This will provide protection against current, and at least short term sector and economic issues and ensure that the company will be less susceptible to customers’ spending patterns, which will in turn provide greater stability.”
rmclaren@thecourier.co.uk