The slowdown in property activity in the city has contributed to a fall in revenue and profit for Aberdeen Gateway business park developer Muir Group.
The Fife-based family-run group of companies company saw revenue drop to £54m for the year to 31 January 2106, from £111m the previous year.
In a statement, chairman John Muir reported group profitability before tax at “a healthy £4.38m”, although down from £13m in in 2015, which included three major property developments in Aberdeen.
Combined turnover for the group’s Property Development division, which includes the Muir Aberdeen and Hermiston Securities companies, fell from £58m to just under £12m, with profits well down from £9.8m to £2.4m. Last year the saw just one property development at the 45 acre Aberdeen Gateway mixed use business park, at Cove, compared to three during the previous year.
Construction of the business park began in 2007, and the first phase saw 11 new buildings erected. The company purchased another 40 acres in advance for development of the second phase.
Mr Muir said the reduction in Aberdeen activity, along with failure to win sufficient contracts from the tender market had a “major impact” on the fortunes of the Muir Construction business. Turnover reduced by more than 50% from £58.3m in 2014/15 to £25.2m in 2015/16. The company generated a loss in the year of £900,000, which the group chairman said was “partially due to the reduced activity and partly due to a loss-making contract in the year.”
The group’s Muir Homes company suffered a drop in turnover from £31m to £25m, with delays in starting new housing sites given as the main reason for fall. Profits were down by £1m to £3.1m on the reduced volume of work, although margins and average prices remained slightly ahead.
The company’s North-east building activity includes the 22 luxury home Blairs development on Royal Deeside and The Grange at Luarencekirk.
Muir Timber Systems, which supplies timber frames, trusses, doors and glazed screens, recorded an increase in profits to £264,000 compared with £185,000 in 2014/15, although on a slightly lower turnover.
Overall, Mr Muir described the group’s results as “a very creditable performance in a period of political uncertainty.” The company is continuing to invest, with stocks of housing and land up nearly £9m in the year.
Employee numbers fell slightly from 286 from 270 in the previous year.
The group also owns Deer Park Golf and Country Club, in Livingston. Losses there reduced to £216,000 in the year, compared to £241,000 the previous year.
Muir Group say it anticipates revenues will increase in 2016, particularly in construction, although development activity, especially in Aberdeen, will be reduced.
