The Aberdeenshire-based house-building and construction group reported a 16% increase in turnover and solid profits in its accounts for the year ended March 2023.
Underpinning the results was a 33% increase in its homes business,
Turnover for the year was up £18m on the previous year to £132m (2022: £114m). Despite cost inflation, operating profits were down only 6% at £4.6m (2022: £4.9m).
Pre-tax profits of £1.8m were down a third on the £2.7m reported in the previous year as a result of writing down the value of a long-held development.
The record level of activity in the year for Bancon Homes saw this division turn over £68.4m compared to £51.3m in the previous financial year. It brought forward future phases of its developments in Aberdeen and Aberdeenshire and started on two new developments in the Central Belt during the period.
Turnover at Bancon Construction was £35.5m, 18% ahead of the previous year and profits before tax were the highest reported since 2007. Given its order book, turnover is set to top £40m this year.
Meanwhile, despite an overall slowdown in the market in the second-half of the financial year, Deeside Timberframe maintained activity at a similar level to the previous year with turnover of £28.0m compared to £32.6m in 2022. The business is investing in facilities and production efficiencies to counter the rise in the cost of raw materials, the company said.
Chief executive Kevin McColgan, who joined the group in September this year from Lovell Partnerships, said: “These robust results, with a second consecutive year of increased homes sales, combined with the renewal of our banking facility, demonstrate the success of our current strategies and the confidence in our future prospects.
“Our strong financial position, positive sales performance in the current financial year and strong forward orders means we are exceptionally well-placed to invest in and deliver our growth ambitions even against the backdrop of the rising costs of raw materials and the wider economic uncertainties.”
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