Bancon Group has reported a 24% increase in turnover, on comparable pre-pandemic years, and 55% on the previous Covid-impacted year.
The Aberdeenshire-based housebuilding and construction group's results for the year ending 31 March revealed turnover of £114m, up £40m on 2021, with operating profits increasing from £1.4m to £4.9m year-on-year.
Pre-tax profits rose from £200,000 to £2.7m, due to strong performances in the homes and timberframe businesses.
Bancon Homes delivered a significant uplift in profit, driven by a record year for sales of private homes across its key markets in and around Aberdeen and the central belt.
This positive momentum has been carried into the new financial year, with 60% of its target sales for 2022/23 already secured.
Two new developments in the Aberdeenshire market were launched and the acquisition of further sites in the central belt are expected to complete in the coming months, continuing a geographical diversification strategy.
Deeside Timberframe delivered an "exceptional trading performance", with record turnover as a result of increased activity in both social and private housing.
The business is investing to increase production capacity in order to capitalise on the positive market demand for off-site, sustainable construction methods. Sales of more than £30m have already been secured for 2022/23 and the timberframe business is well-placed to deliver similar, strong trading in the next financial year.
Bancon Construction also reported an operating profit but had a more challenging year due to supply chain disruption and escalating costs. Steps were taken to strengthen the management of the business, pooling expertise from the wider group aligned to a more focused strategy.
This, coupled with a strong forward order book - approaching double the level in 2021 - is expected to further boost trading performance of the construction business.
Group chief executive John Irvine said: “The underlying strength of the group, together with our clear strategy, has resulted in considerably increased profits, despite the well-documented headwinds being experienced by the industry.
“We have entered the current financial year with strong forward orders across all our businesses and continue to focus on our longer-term growth by significantly investing in the attraction, retention and development of people and increasing the production capacity of Deeside Timberframe.
“With these strong foundations and proactive measures we’ve taken to address the challenges of supply chain disruption, recruitment and rising costs, I am optimistic that we will produce another strong performance in the current year.”
Established in 1975 and headquartered in Banchory, the group employs more than 250 people and comprises: Bancon Developments Holdings, Bancon Homes (Deeside and Donside), Bancon Construction and Deeside Timberframe.
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