Perthshire plant hire giant Morris Leslie saw its profits dip after political uncertainty led to reduced construction sector activity last year.
Based at West Kinfauns, the group is one of the largest plant hire firms in Britain. It also has a property portfolio, runs auctions and a holiday lodge development.
Newly filed accounts for Morris Leslie Holdings Ltd show a small increase in revenue to £73.1m for the year ending April 30 2024, up from £72.5m in the 2023 financial year.
However, pre-tax profits fell from £12.4m in 2023 to £2.6m last year.
Impact on Morris Leslie profits
Group operations director Graham Ogilvie said the results reflected a global slump in construction activity.
Morris Leslie rents its fleet of machines in the UK but then sells them to clients all over the world.
“There’s been a downturn in the UK, Europe and America – it’s the cyclical nature of construction,” said Mr Ogilvie.
“If volumes are down there’s an oversupply in the market so prices come down and margins reduce. Finance costs were also up.
“Despite this climate, we continued to invest heavily to keep our modern fleet.”
Morris Leslie placed a £68m order with JCB last year.
The firm said political uncertainty had depressed construction activity last year.
However, Mr Ogilvie said there were signs of improvement in the marketplace.
He said: “Since June, confidence is slowly improving. There’s definite optimism and more new projects commencing in 2025.
“Our costs are increasing, the National Insurance changes in April will have an impact. Ultimately, with all these increases, we have to become more efficient to absorb these costs.”
He said that while Labour’s plans to build 1.5 million new homes would clearly be good for the sector, he doesn’t see this being straightforward.
He said: “Where does all the labour and resource come from to be able to allow that to happen?
“But I think there is undoubtedly increased demand and requirements for housing.”
Hunt for expansion opportunities
Last year was the 50th year of trading since the founding chairman Morris Leslie started trading in used equipment sales.
It now has more than 300 staff operating across 19 sites.
The business has expanded through acquisition in recent years and Mr Ogilvie said it continues to look for growth opportunities.
He said: “There’s continued consolidation in the marketplace due to the rising cost basis for smaller operators. We are still looking to expand our national offer.”
Conversation