Perthshire plant hire giant Morris Leslie has recorded the highest profits in its 48-year history.
The resurgence of the construction sector after Covid restrictions, combined with a major acquisition, led to pre-tax profits of £12.7 million.
Morris Leslie is best known for hiring construction equipment, but also has auction and property interests. It recently entered the holiday lodge sector with a development near Alyth.
The West Kinfauns-based business is one of the largest buyers of construction equipment, with £82m invested last year. The sale of used equipment is also a major part of the business.
Construction sector confidence high
Group operations director Graham Ogilvie said confidence in the construction sector remains high despite increasing borrowing costs and a looming recession.
He said: “All the divisions within the group have performed well, particularly the plant hire business.
“Confidence with our customers remains high, utilisation is high and demand for used products is exceptionally good as well.
“This year we’ll invest roughly the same among in new equipment as last year.”
Mr Ogilvie said the economic issues facing Britain at present are the same being faced in many part of the world.
He said this recession will be a “slowing rather than a crash”, like the recession in 2008.
“We deal with companies globally selling our equipment and they have the same issues we have here, if not worse in certain parts of Europe,” he said.
“Undoubtedly we’ll get a recession but it will be a slowing unlike the banking crisis when the world stopped because there is no money.
“The demand for houses is high, availability of mortgages is coming through. Consumer confidence is still there.
“Lenders are doing their part, which is the key difference between last recession and this recession.
“Our financial results show there are good news stories out there.”
Morris Leslie profits down to staff
The accounts shows group turnover rose to £71.7m for the year ending April 30, compared to £58.7m in 2021.
The £12.7m pre-tax profit was an almost five-fold increase from the £2.6m surplus in 2021.
Contributing around £5.8m to the increase in revenue was Morris Leslie’s acquisition of Selwood Plant Hire in September 2021.
This major acquisition added five depos in England and around 2,000 machines to the business.
Mr Ogilvie said: “It’s had an impact on revenue and a smaller impact on profit but there will be ongoing benefits of Selwood as we replace their fleet, which was older.
“Our pre-tax profit figure is a record. It’s a big number and it’s a reflection of the hard work from our teams around the UK.”
Conversation