Muir Group has reported a pre-tax loss of £4.3m as it restructured the revenue profile of Muir Homes.
The family-run property developer and contractor, due to celebrate 50 years in business next year, said the financial performance came as a result of challenges facing the whole sector, including margins being squeezed and chronic skills and labour shortages.
The full-year results did, however, show an increase in turnover on the previous financial year by nearly £22m.
Muir Construction turnover also increased by £7m on the previous year, due to the completion of business facilities in Glasgow and the central belt, on time and ahead of schedule.
Muir Timber Systems saw turnover increase by £3m, reflecting the return to normal production following removal of Covid restrictions, alongside rising external sales.
Muir Homes increased its turnover by £12m, despite results being significantly impacted by the pandemic, including lower than expected margins on current sales and a more challenging property market in the north east.
Muir Homes is currently active on seven sites across the country, with the aim of creating several hundred new houses, assisted by new sites opening in the coming year.
Property development within subsidiary company Hermiston also 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 an asset on the balance sheet, with "substantial" revenue accrued through rental income.
Overall, Muir Group retains a cash balance of £16.8m and net assets of £86.7m.
Chairman John Muir said: “The pandemic is mostly 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, but we are positive it will show healthy profit for future years.“
He added: “The construction industry in Scotland is flat out trying to regain lost ground and we are having to overcome these difficult conditions, but our increase in turnover, healthy cash balances, property and land assets all put us in a good place to compete.”
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