Bancon Group has reported increased turnover and strong profits in its latest results.
Group turnover for the Aberdeenshire housebuilding and construction group for the year ended March 2023 was up £18 million on the previous financial year, to £132 million.
The group also delivered operating profits of £4.6 million, despite cost inflation and various market headwinds.
Pre-tax profits of £1.8 million were behind the £2.7 million reported by Bancon Group in the previous year. This was due to writing down the value of a long-held development.
Turnover at Bancon Construction was £35.5 million, 18 per cent ahead of the previous financial year, and profits before tax were the highest reported since 2007.
“This has been achieved through structural changes and tight margin control,” said the group.
Bancon Construction also reported a “strong” order book with turnover of more than £40 million secured in the current financial year (FY2023/24).
A 33 per cent increase in its homes business saw Bancon Homes deliver turnover of £68.4 million, compared to £51.3 million in the prior period.
And timber frame buildings manufacturer Deeside Timberframe maintained activity at a similar level to the previous year, with turnover of £28 million compared to £32.6 million.
The manufacturing business is investing in facilities and production efficiencies to counter the sharp rise in the cost of raw materials.
Bancon Group also renewed its banking facilities with Santander for a further three years to December 2026.
“These robust results, with a second consecutive year of increased homes sales, combined with the renewal of our banking facility, demonstrate the success of our current strategies and the confidence in our future prospects,” said chief executive Kevin McColgan who joined the group in September.
“Our strong financial position, positive sales performance in the current financial year and strong forward orders means we are exceptionally well placed to invest in and deliver our growth ambitions, even against the backdrop of the rising costs of raw materials and the wider economic uncertainties.”
Was this interesting? Try How Andrew Scott de-risked supply chain disruptions
If you have a tip or story idea that fits with our publication, please contact the head of editorial firstname.lastname@example.org
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.