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Strong house sales in Tayside and Fife boost developers

George Fraser, chief executive of Tulloch Homes.
George Fraser, chief executive of Tulloch Homes.

Off-plan sales for a new housing development in Glenrothes helped Tulloch Homes record an increase in turnover last year.

The Inverness-based housing group’s Balgeddie Park development in Glenrothes has so far sold 13 out of 38 units.

Work on the site is expected to continue for a further 18 months.

For the year ending June 30, Tulloch Homes Group’s sales increased by 15% from £43.4 million to £49.9m. Pre-tax profits increased from £7.7m to £12m.

The jump in profit was boosted by the sale of a commercial site in Inverness and a pension refund, which together totalled a one-off figure of £3.5m.

At the end of June 2018, the Group had net assets of £51.7m, an increase of 28.2% on 2016-17.

Chief executive George Fraser said: “The strong financial performance of the business over the last number of years is as a result of a clear strategy divesting of non-core assets and focusing on housebuilding.

“It has also required hard work from all our dedicated employees and wider supply chain together with a quality landbank acquired over many years. This exceptional result was very much a team effort.”

Mr Fraser said the group had benefited from a stable housing market, with its key market of Inverness, one of the UK’s fastest-growing cities, sustaining a strong demand for new housing.

Meanwhile Kirkwood Homes, which has a number of developments in and around Dundee, recorded sales of £52.5m for the 15-month period ending June 30. In 2017 the company had sales of £23.7m.

Exceptional one-off costs led to the firm swinging to a £3.5m loss.

Kirkwood Homes has embarked on a development of 150 homes detached family homes at Balgillo Heights in Broughty Ferry.

The firm also has a development in Liff and has sold all the units in a 45-flat development at Hawkhill in Dundee.

In the company’s accounts, managing director Colin Crombie said: “The company sold 167 homes in the 15 month period, generating turnover of £52.5m and a gross profit of £4.4m (before exceptional costs).

“The year characterised a period of transition for the company with the Aberdeenshire developments continuing to deliver sales despite challenging market conditions, albeit at lower margins that have been achieved in the past, with diversification into Inverness and Dundee markets.”

He said there had been “strong demand” for the Dundee developments while the Aberdeen market continued to be impacted by the oil and gas downturn.

rmclaren@thecourier.co.uk