Fife builder Campion Homes said its performance was affected by deferred starts on a number of larger projects last year.
The Dunfermline company’s turnover was down 7.7% at £14.5 million and pre-tax profit fell by 19.7% to just over £555,000 in the year to June.
Chairman Pete Bell said the fall in turnover was primarily due to deferred starts on a number of larger projects as a result of delays in obtaining statutory approvals.
The chairman said the proportion of private house sales was higher than in 2015, and the gross margin rose from 15.4% to 18.6%, but the operating profit percentage fell from 4.4% to 4%.
The average staff numbers increased from 61 to 79 to support the future growth plans of the company.
Campion said its success in securing a multi-million pound investment from the Business Growth Fund (BGF) in July would help accelerate its building programme in both private residential and affordable homes.
The investment led to the further strengthening of Campion’s board with Mike Stansfield, formerly of national builder David Wilson Homes, and the BGF’s Patrick Graham joining as non-executive directors.
Campion, which builds homes in the private and social housing markets, said BGF’s investment would help with the firm’s plans to build 700 homes over the next five years.
Construction work and sales began at two at two new private development sites during 2016.
Its developments at Rosemount in Leven, Laurel Bank in Springfield and Hawthorn Bank in Kingseat are being marketed at present, while its Law View estate in Leven is awaiting development.
Campion’s estates at The Grange and Linen Mill, Freuchie, are sold out.
Mr Bell, who controls 99.9% of the ordinary share capital, said rising raw material prices continue to impact on the profitability of contracts with the availability of high quality labour and associated rising prices representing risks to the business.
He added: “Despite recent economic uncertainties the company continues to observe strong demand with its private housing division.
“The directors continuously consider economic risk within this market and remains flexible to adapt plans if required.
“Looking ahead, the directors believe that the results for the year and the strong financial position at the year end mean that the company is well placed to take advantage of opportunities in the current market place.”
