Stewart Milne Group halved its losses this year following a “major improvement” in trading performance.
Accounts lodged with Companies House today show the housebuilder and timber systems manufacturer increased turnover from £209.2million to £240.5million while operating profits grew from £622,000 to almost £7million for the year ended June 2017.
Revenues from its homes divisions in central Scotland and north-west England and its timber systems business significantly increased compared to the previous year, as part of the group’s strategy to invest in areas with the greatest potential for growth.
The accounts show the firm continued to dispose of non-core assets, in order to generate the cash to fund the increased investment in developments in these regions.
These actions amounted to exceptional charges which resulted in an overall loss before taxation for the year of £13.7million, compared to £26million in the previous financial year.
The firm said demand for housing in the north-east continued to be impacted by the downturn in the oil and gas industry, however, added there were now signs that the market is stabilising following a challenging couple of years.
Glenn Allison, chief executive of Stewart Milne Group said: “Our overall confidence in the recovery in the north-east housing market is exemplified by our flagship development at Countesswells.
“This £1billion investment in a whole new community, in a sought-after location to the west of Aberdeen, is really taking shape.
“Thanks to the HM Treasury guarantee, we’ve invested in the up-front delivery of major infrastructure, including the country’s fastest broadband, and extensive landscaping to form new parkland.
“There are now over 140 families living in this award-winning new development with three other house builders soon to join Stewart Milne Homes on site.”