For the year to end of January 2022 Muir Group made a pre-tax loss of £4.3m on turnover of £84.9m. During the previous year, when the ipact of Covid on the economy was at its height, Muir Group turnover dropped from £88m to £63m but it still made a £1m profit.
However, a squeeze on margins and a restructuring of the house-building division led to a loss this time.
The Muir Construction division grew turnover by £7m on the previous year to reach £46m; the current order book is described as healthy.
Muir Timber Systems increased turnover by £3m, back to its pre-Covid level of £7.5m, reflecting the return to normal production following removal of restrictions.
Muir Homes, which had borne the brunt of the Covid pain, increased its turnover by £12m to nearly £39m, but this was still below the pre-Covid £44m level. Issues identified in assessment of expected margins on current sales and a more challenging property market in the northeast contributed to it making a loss this time around, the company said.
After a review of the business, a new strategy has been adopted, focusing on “a more diversified and balanced portfolio” of housing developments.
Muir Homes is currently active on seven sites across Scotland, totalling “several hundred” new homes.
Hermiston, Muir’s property development subsidiary, completed Amazon’s first bespoke last-mile delivery warehouse at Glasgow Business Park, Springhill Parkway. This will be included as a significant asset on the balance sheet with substantial revenue accrued through rental income.
Overall, Muir Group retains cash balances of £16.8m and net assets of £86.7m.
Chairman John Muir, who founded the business in 1973, said: “We have a dedicated team working hard in very difficult and challenging times. The pandemic is 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 and positive it will show healthy profit for future years.
“Looking ahead, to our 50th year in business next year, we see opportunities for the group with Construction, Homes and Property Development working on major new projects alongside our Amazon business park continuing to provide revenues.
“The construction industry in Scotland is flat out trying to regain lost ground and we are having to overcome these difficult conditions. Our increase in turnover, healthy cash balances, property and land assets put us in a good place to compete and contribute positively to Scotland’s economic recovery.”
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