Scotland business

Aberdeen's Stewart Milne Group reports rise in profits

Stewart Milne Group
Image caption Stewart Milne now focuses on house building and timber frames after selling its construction business

Aberdeen-based housebuilder Stewart Milne Group has reported a rise in profits, despite incurring significant restructuring costs.

Records at Companies House showed the firm made a pre-tax profit of £486,000 in the 12 months to the end of June - up from £406,000 in the previous year.

In April, Stewart Milne sold off its commercial construction division to UK property firm Kier.

The division's losses, along with exceptional costs, amounted to £8.2m.

The group also incurred "substantial costs" in restructuring its timber systems business to increase operational efficiency.

The company said group operating profit increased by 25% to £12.1m, in part as a result of increased activity in its homes division and an improved timber systems performance, which more than offset losses in its former construction business.

In a statement, chairman Stewart Milne said: "The year to June 2012 experienced market conditions similar to 2011 with housebuilding activity remaining subdued due to a lack of availability of mortgage finance and confidence levels being low, and both the construction and timer frame markets being extremely competitive."

He added: "We believe that the challenging market conditions will continue in the coming year and we continue to focus on the fundamentals of the business to ensure we operate effectively."

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