Perth construction firm Algo has returned to profit after posting large losses in 2023 which it blamed on “onerous” local government contracts.
The company, which specialises in agricultural, commercial and whisky industry construction, recorded a pre-tax profit of more than £1.5 million in the year to June 30 2024.
It follows losses in 2023 of more than £3.5m, when it lost money honouring housing contracts struck before the cost of materials soared.
Turnover rose by 26% last year, with sales of £36.3m compared to £28.8m in 2023.
Algo profit after successful year
Algo director Murray Alexander said the latest figures were good, in the face of “prevailing economic conditions”.
It comes as a number of other prominent housebuilders in the north east have gone bust, including Stewart Milne and Hadden in Aberuthven.
He said: “The company has performed strongly in the year to June 30 2024.
“Following the completion of onerous contracts reported in the previous year’s results, profitability and gross margins have returned to normalised levels generating a profit before tax of £1.5m.
“The results reflect the company’s renewed focus on its core competencies.
“The directors anticipate the positive trading results will continue into the current trading period.
“The directors consider this financial performance to be good, particularly in in view of the prevailing economic conditions and high level of competitiveness experienced across the sectors in which the company operates.”
Algo projects
Projects during the financial year included the construction of 39 two-bedroom flats and three commercial units on Kirkcaldy High Street.
It also acted as main contractor for work on Dundee Ford Centre in Baird Avenue.
This involved a transformation of the facility, from new external cladding to a full internal fit out. The project was completed in August.
Algo was also the main contractor for redevelopment of the Active Kids Adventure Park near Luncarty.
It also worked on new warehouses at House of Bruar.
Mr Alexander said the business was in a “healthy” financial position.
He adds: “The company’s balance sheet remains robust with net assets increasing from £3m as at June 30 2023 to £4.1m as at June 30 2024.
“The company has a strong, loyal, and varied customer base across the agricultural and commercial sectors as well as private clients.
“Looking forward the directors are confident the company will exceed the profitability of prior years.”
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