Bancon Group has reported “another strong year of trading” after a 33% jump in sales at its homes business.
The Aberdeenshire-based housebuilding and construction group posted a 16% year-on-year increase in total turnover in its accounts for the 12 months to March 31 2023.
Sales were up by £18 million on the previous year, to £132m.
Best year ever for Bancon Homes
A record level of activity for Bancon Homes delivered turnover of £68.4m, from in 2022-23, compared with £51.3m the year before.
The housebuilding division completed 262 private and affordable homes in the latest period.
Bosses attributed the sales performance to “resilience of the markets in which Bancon Homes operates, the quality of the product, the attractiveness of the locations and a genuine focus on customer service”.
Group-wide pre-tax profits of £1.8m were slightly behind the £2.7m reported in the previous year as a result of the fir writing down the value of a long-held development.
Banchory-based Bancon Group reported operating profits of £4.6m for the latest period, down from £4.85m last time.
This was in the face of cost inflation and other headwinds for the industry, it said.
Chief executive Kevin McColgan, who joined the Group in September following the retirement of John Irvine, described the results as “robust”.
A second consecutive year of increased homes sales and the renewal of the group’s banking facility “demonstrate the success of our current strategies and the confidence in our future prospects,” he added.
Mr McColgan continued: “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.”
Bancon Homes brought forward new phases of its developments in Aberdeen and Aberdeenshire and started on two new developments in the central belt during the period.
How did Bancon Group’s other businesses do in 2022-23?
Turnover at Bancon Construction was £35.5m, 18% ahead of the previous year and profits before tax the highest since 2007.
Bosses said this had been achieved through “structural changes and tight margin control”.
Bancon Construction has a “strong” order book, with turnover in excess of £40m secured in the current financial year, they added.
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.”
Kevin McColgan, CEO
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 12 months.
Turnover at the subsidiary came in at £28m, compared with £32.6m previously.
Bancon Group said it was investing in facilities and production efficiencies at its timber systems design, manufacturing and installation business to counter a sharp rise in the cost of raw materials and to “deliver a step-change in growth in Scotland and England.
Established in 1975, Bancon Group employs 260 people across its three core businesses.
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