Dundee construction firm Kilmac has posted record profits despite “challenging” economic conditions.
The company reported pre-tax profits of £1.7 million up to September 2023, its annual accounts show.
And staff at the Tayside groundworks specialists will enjoy a £500,000 bonus as a result of profits exceeding takeover predictions.
It follow the decision to move towards an Employee Ownership Trust (EOT) two years ago.
This was part of a phased strategy to hand over the reins to an experienced board of directors to take the company forward, directors said.
Staff numbers surged by 50% to 150 in the same time period, as the company looks to expand into other parts of Scotland.
Kilmac posts record profits
Kilmac has been involved in a number of Tayside and Fife construction projects.
Major developments include the recently opened Perth Museum, the Dunfermline Campus, Perth and Monifieth High Schools and the Broughty Ferry flood defences.
Turnover to September 2023 increased by £0.92m to a record £26.57 million, up from £25.65 million in 2022.
The net profit margin came in at 6.4%, up from 5.1% year-on-year.
Reflecting on their latest annual statement, director Athole McDonald said the board was pleased with trading results “achieved in a challenging economy”.
“The construction industry and general business environment in which the company operates continues to be highly competitive.
“The directors are aware that the future performance of the company will be directly affected by circumstances prevailing in the UK economy but believe that the good flow of future work and constant assessment and review of costs will ensure future prosperity of the business.
“This year’s profits exceeding takeover projections have allowed an early windfall EOT bonus in excess of £500,000 to the staff.”
Dundee company expanding
In expanding its horizons beyond the traditional Tayside heartland, Kilmac has opened bases in Livingston and Dunfermline, with the workforce leaping from around 100 to more than 150.
In addition to major campus projects in Edinburgh, Kilmac, which recently secured the groundworks contract for the new Inverkeithing High School, has been expanding its presence in the central belt.
Mr McDonald added: “Another significant major project for Kilmac was the new Riverside Primary School in Perth which has helped establish the company as one of Scotland’s leading energy efficient, high insulation Passivhaus groundworks specialists.”
Athole McDonald formed the company with fellow director Richard Kilcullen 20 years ago.
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