Scottish construction and property development company, Muir Group, has said it will continue to pursue profits as it battles a challenging trading environment and recent losses.
The group recently posted turnover for the year ended 4 February 2024 of £93 million, roughly in line with the previous financial period, but generated a pre-tax loss of £3.2 million (FY2023: £2.2 million profit).
The Fife-headquartered business also reported an operating loss this year of £2.8 million, deeper than the £127,000 loss it saw in the prior financial year.
In a financial statement, the group said: “Muir Construction Limited has had another successful year, securing an increased number of contracts across a varying range of industries.”
However, it also said: “Margins within the sector continue to be low, with the impact of cost inflation, lack of supply and skilled labour shortages increasing costs.
“Within the current economic climate, 2024/25 will continue to be challenging. However, Muir Construction Limited is looking to further enhance its reputation for quality and customer excellence and continue to deliver profits.
“Muir Homes Limited’s results have been impacted by the economic headwinds challenging the housebuilding industry, in particular increased mortgage rates, high inflation levels and the cost-of-living crisis, all of which have dented customer confidence and purchasing power.
“In addition, the housing sector has faced unprecedented disruption in the supply chain, with significant material and subcontractor price increases outstripping sales price increases, as well as a skills shortage in the industry.”
At the year end, however, Muir Group’s balance sheet had net assets and total equity of £86.2 million, down slightly on the £90 million recorded the year before, with cash reserves too of £5.3 million (FY2023: 16.2 million).
However, the group posted a loss for the year of £3.9 million, behind a £1.9 million profit in the prior trading period.
Other businesses within the wider Muir Group include Muir Timber Systems, Muir Property Investment and Hermiston Securities as well as the Deer Park Golf and Country Club.
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