An Aberdeenshire housebuilder and construction group has announced positive trading results for the year ending 31 March 2020.
A marked improvement in margins at Bancon Group the led to an increase in operating profit from £10.3m in 2019 to £13.2m last year.
This is despite turnover dropping from £92m to £85m as a direct result of the inability to trade during the final weeks of the financial year due to the Covid-imposed lockdown.
Exceptional costs of £3m incurred during the year have suppressed the group’s overall position, resulting in a loss before tax of £500,000.
These were due to a non-cash impairment to write down the value of a long-held development and a one-off loss on a historic construction contract.
Santander recently signed a three-year extension to the group’s banking facility.
During the period between lockdowns last summer, the group reported strong trading performance and now has a positive forward sales position across its homes, timber frame and construction businesses.
Notwithstanding the ongoing market challenges in the North-east of Scotland, Bancon Homes has continued to deliver its growth plans.
Three new developments were launched in the period, with further sites secured since its year end, including its first site in the Central Belt as part of its expansion plans.
Deeside Timberframe delivered a record year, after capitalising on the increasing demand for off-site construction methods by growing repeat business with existing customers.
Trading performance and margins were ahead of expectations at Bancon Construction, attributed to a strategy of focusing on higher margin work and extending its reach throughout Scotland.
John Irvine, chief executive of Bancon Group, said: “These robust results in a financial year, which was impacted by the pandemic and the subdued market in the North-east at the time, reflect the overall health of the group.
“With significantly improved margins and trading performance across all three of our businesses, coupled with a very encouraging future order book, we have firm foundations from which to build sustainable, profitable growth once the impact of the pandemic is behind us.”
Headquartered in Banchory, Aberdeenshire, the group employs more than 260 people across the region and into central Scotland.
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