Scottish housebuilder Mactaggart & Mickel Group’s profit before tax was up 7.1% to £10.4 million for the year ended 30 April 2016; however, turnover dipped 4.2% to £65.1 million from £68 million in 2015.
The Group’s flagship Homes division posted a strong performance against a background of market uncertainty and changes to the Land and Buildings Transaction Tax. Decreased borrowings, the extraction of greater value from sites and increased efficiencies further boosted profit margins, the Group said.
The Homes division posted an increased turnover to £55 million (2015: £48.5 million) and profit to £13.7 million (2015: £11.6 illion) with 169 units sold (+15% on 2015). Six new developments were launched in Midlothian, Uplawmoor, Newton Mearns, Howwood and Edinburgh, and three new house types brought to market.
The Group’s English Strategic Land division moved into its next phase with two sites allocated for development by its Homes division. This marks the first time the company has built south of the border, an action set out in the five year plan in 2011. Profits from its first English land sale amounted to £0.6 million.
“This financial year marked the last in our five year plan which advocated a consistent, medium term approach and sustained focus on improving efficiencies across the Group,” said Chief executive Ed Monaghan. “It has delivered steady growth, consolidated by this year’s significant upturn in profit.
“We now move into a new phase for the business as we develop our operations not only in Scotland, but in England.
“We will continue to nurture our Scottish interests and remain firmly committed to growing our presence across Scotland; an intention crystallised by the signing of a new 10 year lease on our Glasgow-based headquarters.
“Diversification remains a priority as we embrace new technology, products and markets. With a strong land bank and clear strategic focus, we are well placed to deliver future business growth.”