Murray Capital has reported an 11% increase in turnover from continued operations to £92.8m, driven primarily by increased steel prices in the company’s metals group.
During the year to June, it also recorded a 31% increase in profit before tax to £12.8m, which helped shareholders’ funds grow 23% year-on-year to £43.9m.
Improved profitability came mostly from improved trading by Murray Steels and Hillfoot Steel - both of which had a record year of profitability - as well as the sale of 12 acres of consented land at Ratho Station to Taylor Wimpey.
Murray Capital made a number of new and follow-on investments in support of its portfolio of businesses, as the group continues to pursue a diversified and sustainable business.
The largest new investment made during the period was into Wavegarden, a £55m landmark development using new technology to build Scotland’s first inland surfing destination on the outskirts of Edinburgh.
In April, the group sold its longstanding investment in Capito, an IT services business, to XMA, one of the UK’s largest IT resellers.
Meanwhile, Murray Estates secured final planning for its Edinburgh Garden District development, comprising 1,350 homes, a primary school, a commercial and retail centre, as well as supporting infrastructure. Work should begin next year.
The team is currently reviewing its options for the remaining 520 acres of land on that site, in light of "ongoing planning issues in Edinburgh" and the overall housing market dynamics.
Plans for a 23-acre site at the Edinburgh International Business Gateway, next to Edinburgh Airport, were called in for review by the Scottish Government in May 2019 and remain on hold, pending approval from ministers. The financial statement noted that the group hopes this will progress in 2023.
In August, the business sold 5.5 acres at its Kingdom Park site in Kirkcaldy to Persimmon Homes. This completes phases one and two, with the focus moving the latter phases, which include more than 500 additional new homes, a retail park, primary school and support infrastructure.
Murray Capital Holdings also continues to provide support to the Murray Family Foundation, which was established in 2017 to make charitable donations to a number of causes at the discretion of its trustees.
David D Murray, managing director of the group, said: “We are very pleased to post our best set of results for a number of years, although we do so with our feet planted firmly on the ground given the cyclical nature of our businesses and the current economic uncertainties in UK and global markets.
“The current financial year has also started well, with encouraging trading results in the first quarter, although we are mindful of the wider economic turmoil and the general sense of nervousness about the year ahead.
“Being family-owned, with no external third-party debt, allows us to take a long-term and patient view, which we believe will be necessary as the cost of money increases and higher inflation continues to impact the environment in which we operate.”
Ownership passed from one generation of the Murray family to the next in March last year, when Sir David Murray handed the reins to his sons, David and Keith.
Murray Capital Holdings is headquartered in Edinburgh. The family business has been operating in Scotland for nearly 50 years, with a strategy diversified between property, steel stockholding, wine making and distribution, together with an investment portfolio of quoted and unquoted businesses.
David’s brother Keith runs the family’s wine business and their father, Sir David Murray, chairs the company.
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