Muir Group reports ninth consecutive year of profit



Fife-based housebuilder, property developer and contractor Muir Group has reported a £1 million profit against a turnover of £63 million and nine consecutive years of profitable trading.

John Muir

Announcing its financial results for 2020/21, the group said Muir Construction turnover increased, five of the group’s divisions returned a profit and Muir Timber Systems moved from a loss into profit.

Muir Group is upbeat about the forthcoming year 2021/22 with significant growth planned across its divisions, including construction, property development, Muir Timber Systems and Muir Homes. Expansion of operations in the central belt is on the agenda, as the company looks for further land opportunities.  

Pipeline activity levels for 2021/22 look strong as Muir expands its activities – working with commercial and residential clients. Muir continues to win major construction contracts and has a significant land bank available for future developments.

Muir Construction turnover increased to just under £39m, up by over £2.9m on last year. This result was despite the challenging situation of construction being halted for a full quarter of the trading year. Muir Construction has recently completed a 150,000 sq. ft logistics facility at its 26 acre Glasgow Business Park on the M8 and is expanding its activities on further sites in Glasgow and M8 central belt, with construction likely to start in the new year.

Property Development within subsidiary company, Hermiston and Muir Aberdeen accelerated again this year to £4.5m revenues. The results show a net loss as completion and sale of major developments will complete in future financial years. The property development of Muir looks set to return greater profitability with the pre-let of the logistics centre in Glasgow along with acquisitions of development sites at Eurocentral set to be delivered in the current and future years.

Muir Timber Systems consolidated its position with a full order book and another busy year. This division returned a profit of £40,000 despite a decreased turnover of £4.4m from £7.4m. The turnover figures reflected the halting of production during the lockdown period and the reduced staff numbers due to furlough. The prospects for increased activity in the current year look promising.

Housing revenues for Muir Homes reached £26.5m despite the lockdown period affecting the ability to complete and handover new homes. House completion decreased by 68 to 134 in the year, and although restricted in delivering the originally budgeted housing numbers, Muir homes reported a profit of £586,000.   The business aims to create 155 houses this year and Muir is active on seven sites across the country.

John Muir, chairman of Muir Group, said: “These results are a robust response to a challenging and unprecedented year for the construction sector. The pandemic had a significant impact on revenues and operations. However, Muir Group reported another profitable year – that is an achievement I am very proud of. Turnover was down from a year ago, but the shutdown of construction for nearly 3 months affected the handover of private houses and completion of projects. Overall group profits of £1m is a credible performance in such difficult conditions.

“The UK Government furlough scheme was a major lifeline, protecting jobs. It also meant we had 200 staff out of the business for a significant period. This year was demanding and the staff across all the businesses stepped up to the challenge. They have worked hard, and the management team has played its part in creating a safe and effective workplace. 

“Looking forward, on the trading front we have made a positive start to the year with a significant pipeline of activity planned and a strong balance sheet.  Overall, the group is in good shape, continues to win major construction contracts, has a good land bank, has strength in identifying development sites in the right locations for the right markets, which will significantly enhance future results. We are focused on further growth in the central belt and are keen to identify sites for commercial and residential development there.”

Muir Group plc results

 

Turnover

Profit

 

Year Ended Jan

Year Ended Jan

 

2021

2020

2021

2020

 

£000’s

 

£000’s

£000’s

£000’s

Consolidated

 

63,004

88,243

1,008

4,200

J W Muir

 

 

228

1,255

Muir Construction

38,917

36,004

1,268

2,071

Muir Homes

26,594

43,783

586

2,879

Muir Timber Systems

4,401

7,449

40

(270)

Muir Leisure

517

1,656

(520)

(307)

Hermiston

2,223

2,150

(478)

(39)

Muir Aberdeen

2,352

91

122

(263)

Scarborough Hermiston

-

2,471

(10)

165

Tags: Muir Group



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