Muir Group posts pre-tax loss of £4.3m
Muir Group, the Scottish property developer and contractor, has announced its financial results for the year 2021/2022 revealing a pre-tax loss of £4.3 million as it restructured the revenue profile at Muir Homes.
The firm said the pre-tax loss was a result of challenges facing the whole sector, including margins being squeezed and chronic skills and labour shortages.
However, Muir Group has reported an increase in turnover on the previous financial year by nearly £22m, while Muir Construction turnover increased by £7m on the previous year. The positive result was due to the completion of business facilities in Glasgow and M8 central belt, on time and ahead of schedule. The order book looks healthy for the coming year.
Muir Timber Systems had a busy year, turnover increasing by £3m, reflecting the return to normal production following removal of restrictions post-COVID and increase in external sales.
At the same time, Muir Homes increased its turnover by £12m, despite results being significantly impacted by the pandemic. Issues identified in assessment of expected margins on current sales and a more challenging property market in the North East all contributed to a loss for the financial year.
The Group, after a thorough review of the business, is now focussed on a more diversified and balanced portfolio of housing developments throughout Scotland. Muir Homes is currently active on seven sites across the country with the aim of creating several hundred new homes, assisted by new sites opening in the coming year.
Property Development within subsidiary company, Hermiston, delivered Amazon’s first bespoke last mile delivery facility on a 19 acre site at Glasgow Business Park at Springhill Parkway. This will be included as a significant asset on the balance sheet with substantial revenue accrued through rental income.
Overall, Muir Group retains healthy cash balances of £16.8 million and net assets of £86.7m.
John Muir, chairman of Muir Group, said: “We have a dedicated team working hard in very difficult and challenging times. The pandemic is over, but its legacy continues with price increases in raw materials, delays in the supply chain and a significant lack of skilled labour to support the construction sector.
“Despite all these challenges and more likely in the coming years, Muir Group is well positioned for the future. We have made difficult decisions, particularly in rebuilding our revenue profile within Muir Homes and positive it will show healthy profit for future years.
“Looking ahead, to our 50th year in business next year, we see opportunities for the Group with Construction, Homes and Property Development working on major new projects alongside our Amazon business park continuing to provide revenues.
“The construction industry in Scotland is flat out trying to regain lost ground and we are having to overcome these difficult conditions. Our increase in turnover, healthy cash balances, property and land assets put us in a good place to compete and contribute positively to Scotland’s economic recovery.”