The prospects for Dundee construction firm Muirfield Contracts are “solid” despite a squeeze on profits last year.
Accounts newly lodged at Companies House show the Camperdown Industrial Park-based contractor enjoyed a significant hike in revenues in the year to October 31, with turnover increasing by almost £7.5 million to £48.53m.
However, the highly competitive nature of the construction market meant that profits before tax fell from £1.98m in 2012 to £1.04m.
The accounts show that the firm employed an average of 272 staff during the year – a slight reduction from the 280 figure of 2012 – with total payroll costs flat at £8.12m.
The company is a wholly owned subsidiary of Muirfield Holdings Limited which in turn is owned by ENSCO 395, a holding company under the control of John Stodart who led a takeover of Muirfield through private equity vehicle Azure Investments last May.
Filings for ENSCO 395, which also owns two dormant subsidiaries Muirfield (Specialist Renders) and Muirfield Developments, shows that turnover from the date of the company’s incorporation on February 4 last year to the financial year end was £20.99m, producing a profit on ordinary activities before taxation of £30,945.
In his director’s report signed off last month, Mr Stodart said the group had made progress during the year.
“The group took advantage of improving market conditions to deliver a solid operating performance in the period,” Mr Stodart said.
“Whilst turnover was significantly ahead, margins on contracts continue to be challenging due to the competitive nature of the market.
“The group balance sheet remained strong throughout the year and provides confidence for clients and stakeholders in the business. Cash reserves increased year on year in comparison with 2012.
“Despite the challenging nature of the market in which the group operates, management believe that the group is well positioned to grow in the subsequent financial year and beyond.”