Scotia Homes has reported a 16% increase in operating profit to £4.4m for the year ended 30 June 2022.
The Ellon-headquartered housebuilder's turnover reached £40m - 21% ahead of the previous financial year - as the business continued its recovery from the pandemic.
Completed house-builds increased to 165 units, up from 142 units during 2021.
Sales volumes increased across all sites, and with house price inflation continuing to outstrip material price increases, gross margins improved to 24% during 2022.
Investment in Scotia's landbank and work-in-progress increased to £44.2m - from £30m in 2021 - at the year end.
The company's consolidated balance sheet showed net assets increasing to £25.2m, with a net bank debt of £13m.
Joint managing director Graham Reid said he was pleased with the results, "considering the challenges that we faced with labour and material availability shortages and high levels of cost inflation during the period".
He explained that Scotia's geographic diversification strategy paid dividends, as sites in Angus and the Highlands delivered strong sales performance, while Aberdeen city and shire showed "a more steady recovery" from the price falls seen over the previous five years.
Chairman Gary Gerrard stated: “Our board continues to monitor the changing economic landscape on a regular basis and the operating environment across the housebuilding sector has undoubtedly become more challenging since the year end.
“A combination of high cost inflation and weaker demand due to the cost-of-living squeeze and increasing mortgage rates has depressed enquiry rates.
“The group has a strong level of forward sales and we remain confident that demand for our high quality homes in desirable locations will be sustained notwithstanding the difficult macro economic situation.”
Scotia has current and future developments in Aberdeen, Arbroath, Aviemore, Ballater, Blairgowrie, Brechin, Braemar, Dundee, Ellon, Forfar, Inverness, Kincraig, Kintore, Laurencekirk, Nairn, Newmacher, Old Meldrum, Perth, St Andrews and Tarves.
The business builds around 200 new homes per year, with more than 4,000 constructed across 113 developments since the company’s formation, employing more than 200 people across the north of Scotland.
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