Glasgow housebuilder Mactaggart & Mickel has reported lower annual sales and profits but pointed to growth in a number of areas three years after launching a “diversification strategy”.
The family-owned firm said group turnover in the year ended 30 April had fallen to £38.5 million from £48.1m. Profits before tax came in at £2.86m, down from £4.3m last time, before a land writedown charge of £1.5m.
It highlighted “steady” sales at its core homes division against a backdrop of “constrained” mortgage supply. Three additional developments were launched in the year, while several incentive schemes were introduced to support buyers.
At the firm’s timber systems arm, turnover increased by 45 per cent and profit grew twelve-fold.
Meanwhile, new premises increased capacity to meet demand from contract wins and the delivery of 228 homes for the 2014 Commonwelath Games athletes’ village in Glasgow.
Mactaggart’s contracts division increased its presence in the affordable housing market, while the group’s English strategic land project is said to have “gathered pace”.
The past year also saw Derek Mickel step down as group chairman after 50 years with the housebuilder. Homes chairman and third generation family member Bruce Mickel succeeded him in the role.
Chief executive Ed Monaghan said: “Our performance in this financial year has been sound, reporting a respectable profit and some strong results across individual business units. The past year has seen us progress some exciting projects from launching three new housing developments to securing one of the first public private partnerships using the groundbreaking National Housing Trust funding model.
“Added to which we are now able to offer the Scottish Government supported initiative Mi New Home scheme for purchasers. And after a fantastic summer for British sport we are even prouder of our role in delivering the 2014 Commonwealth Games Athletes’ Village as part of the City Legacy consortium.”
He added: “We are now seeing the benefit of the diversification strategy we implemented in 2009 in response to changing market conditions; a medium term view that has allowed us to exploit previously untapped opportunities in our existing landbank and enter new areas such as affordable housing.
“There is no doubt that there is still significant uncertainty in the sector and wider economy, but we are confident that our business model and infrastructure will see us evolve successfully throughout this period.”