The construction of Scotland’s first new town for a generation has boosted profits at Perth building group Stephen.
Newly published accounts for A&J Stephen (Holdings) Ltd show turnover at the family-owned group, whose roots go back to 1935, grew by more than £3 million to £12.56m in the year to March 31, 2014.
Profits were also significantly ahead, with the company reporting a pre-tax return of £633,744 for the year, up from £95,491 in 2013.
The performance represents continued progress from the loss-making position that Stephen was in during the downturn in 2012.
The company which is currently offering properties for sale across eight sites in Tayside, Fife and north-east Scotland said there was strong demand for its new-build properties at the multi-million-pound Chapelton of Elsick development near Aberdeen.
The firm is one of three construction companies appointed to make Lord Southesk’s vision of an all-new community on the outskirts of Aberdeen a reality.
“During the year we opened a new site at Chapelton in Aberdeenshire that has proved to be very popular, with all of our first phase sold out,” company secretary John Webster said in his report to the accounts.
“Chapelton will be Scotland’s first new town for a generation, with in excess of 4,000 homes planned.
“Following a lengthy selection process we are one of three builders chosen to deliver the project, and we are working very closely with the landowner to deliver his vision.
“We are confident this relationship will endure for many years to come.”
During the year the company sold 49 units, a 25% increase on its output in 2013, while the gross margin of 22% was in line with the prior year and budget targets.
The group employs 68 staff directly as well as providing work for sub-contractors on sites like Chapelton.
It said demand for its properties was strong, and it had moved to increase its overall land bank during the year.
Mr Webster said: “The group moves towards 2015 with a note of cautious optimism as we see real signs of improvement starting to come through in the market place. The Scottish Government’s Help to Buy initiatives has been effective in stimulating the Scottish housing market, and we are eventually starting to see its impact on our business.
“Sales since the year end have improved, with a significant proportion of buyers making use of this incentive.”