North-east builder Bancon Group was back in the black during its last full trading year despite a sharp drop in turnover.
The Banchory-based firm today (August 18) posted accounts showing pre-tax profits of £181,729 for the 12 months to March 31 2021, compared with losses of £526,609 a year ago.
Turnover fell to £73.6m in the latest period, down from £85m previously after business ground to a halt for nearly four months during the first Covid-19 lockdown.
The group is well-placed to weather the current headwinds regarding materials supply being experienced by the industry.”
John Irvine, chief executive, Bancon Group
Bancon, which is owned by the family of Aberdeenshire West Conservative MSP Alexander Burnett recommended no dividend.
The company is predicting “significant” growth in turnover and profits for the current trading year, on the back of record levels of activity in its timberframe business, new construction contracts and “extremely positive” home sales.
This is despite problems getting hold of building materials – an industry-wide problem as construction ramps up in the aftermath of lockdowns.
Three-quarters (75%) of Bancon’s full-year sales targets have already been secured only four months into the new financial period.
Chief executive John Irvine said: “The positive momentum since the easing of lockdown restrictions has continued into the current financial year, with exceptionally strong levels of forward sales in our homes business, record levels of activity in timberframe and recent construction contract awards.
“With the benefit of a full-year’s uninterrupted trading, the positive forward sales position and a continuation of our strong underlying trading performance, the group is well-placed to weather the current headwinds regarding materials supply being experienced by the industry and deliver a significant increase in activity and profitability in the coming year.”
‘Growth agenda’
Mr Irvine added: “We continue to pursue our growth agenda, building on the exceptional performance of our timberframe and construction businesses and the expansion of our homes’ business into the central belt.
“We are very grateful for the support of our employees, customers, supply-chain and funders which has enabled us to navigate our way through a challenging year and emerge in a strong position for long-term, sustainable, profitable growth.”
Bancon reported a “marked improvement” in new home sales across the north-east, where the market has been depressed for several years.
Three additional developments were acquired during the past year, including Bancon Homes‘ first site in the central belt, where sales are “out-performing expectations”.
The firm said a relatively quick return to the high activity levels experienced before the pandemic drove positive trading in the second half of the year at its Deeside Timberframe subsidiary. A strong forward order book and the highest ever levels of activity signal a significant uplift in the business in the coming year, Bancon added.
Construction arm also making profits
Meanwhile, Bancon Construction delivered a year-on-year increase in turnover and “a modest pre-tax profit”, the firm said.
Founded in 1975, Bancon Group has grown from a small estate joinery business into one of the north-east’s leading construction and housebuilding companies, employing more than 240 people.
