Tayside civil engineering firm Kilmac has reported record turnover in the year its employees took control of the business.
Kilmac, which has offices in Dundee and Perth, announced the employee ownership move to secure its future.
Newly filed accounts shows the company, started by two friends Richard Kilcullen and Athole McDonald almost two decades ago, has continued to grow.
As well as working on prestige projects such as the £26m Perth Museum development, Kilmac opened a new office in Mid Calder.
It has also added around 30 staff to now have a workforce of around 160 people.
Kilmac employee ownership success
The accounts, for the year ending September 2022, show sales of £25.65m, an increase of £6.8m in 2021. Pre-tax profit was £1.3m, a fall from £1.6m the previous year.
Mr McDonald said: “We are pleased with our overall trading results. The slight drop in operating profit came against a backdrop of material shortages and increasing costs. This includes higher wages required to enhance our expanded, high-quality workforce.
“Crucially, Kilmac also took a decisive step towards future proofing the business and preserving our core values by overseeing a successful employee ownership trust in January last year.
“Importantly, the management team has remained unchanged, apart from the appointment of additional directors from within the business and the addition of construction director Richard Todd.
“While continuity has been assured, 100% of the shares are now owned by the Kilmac employee ownership trust, which will reward our dedicated and hardworking employees in the years ahead.”
New office but facing cost pressures
The firm has been playing a key supporting role with BAM Construction transforming Perth City Hall into Perth Museum.
Other recent large scale subcontracted earthworks projects include the new Dunfermline High School, Blairgowrie Recreation Centre Monifieth Learning Campus.
Mr McDonald said the decision to open a satellite office in Mid Calder has been “fully justified”.
Looking ahead, he sees inflationary cost pressures as the main challenge.
He adds: “The construction industry and general business environment continues to be highly competitive.
“Global inflationary pressures present arguably the biggest challenge going forward.
“But the directors believe that the good flow of contracts in the pipeline.”
Kilmac is also working closely with main contractor Robertson Construction in building Scotland’s first energy efficient Passivhaus primary school in North Perth, on the site of North Muirton Primary School.
“We have quickly established a reputation as specialists in the fast-growing Passivhaus sector and anticipate this will offer scope for further growth,” said Mr McDonald.
“Kilmac continues to go from strength to strength and remains a trusted name in the construction sector.”
