A major north-east builder has seen its profits plummet as it suffered the knock-on impact of a severe economic downturn in the north-east.
Stewart Milne Group (SMG) slumped to pre-tax losses of £26.1million. The firm, based in Westhill also saw turnover drop to £209.2m, from £241.4m a year earlier during the year to June 30, 2016, its accounts show.
SMG described 2015/16 as “a year of transition” as it reported the plunge into the red, from profits of £7.8m the year before.
Operating profits fell to £600,000, from £14.2m previously, amid falling house sales across the North-east. Turnover for Stewart Milne Homes slid to £163.7m in the latest period, from £199.4m in 2014/15.
But the group’s workforce grew slightly to 816, on average, during 2015/16 as SMG shifted the balance of its business towards “segments of the market where demand is most resilient”.
It ramped up investment in its Homes Central Scotland and Homes North West England businesses, where strong market conditions “continue to present significant growth opportunities”.
And strong demand outside the North-east boosted profits and sales at SMG’s timber systems business.