Mactaggart & Mickel Group celebrates 90 years in business with 21 per cent rise in profits

Ed Monaghan
Ed Monaghan

An ongoing focus on growing income from external markets through each of its divisions has paid dividends for Mactaggart & Mickel Group with profits increasing by 21 per cent.

The group, which is celebrating 90 years in business, published positive results for the year ended 30 April 2015 showing a 16 per cent rise in turnover to £68 million (2014: £58.5m) with profits before tax increasing 21 per cent to £9.8m (2014: £8.1m).

The results maintain its strong performance from 2014 which saw the Group return to pre-recession profit levels. The Group’s flagship Homes business also continued to deliver robust returns.

Operational highlights include:

  • Homes – Homes remains the cornerstone of the business contributing turnover of £48.5m (2014: £44m). Forward sales of 82 per cent have been secured in the current trading year.
  • Timber Systems – Turnover increased to £5.4m (2014: £4.3m) as the division strengthened its management team and improved productivity through further capital investment in its manufacturing facility. Contract wins with new and repeat residential and commercial property clients secured a healthy order book.
  • Contracts – Reduced turnover of £10.4m (2014: £13.3m) as the division completed the retrofit of 225 units at the multi-award winning Commonwealth Games Athletes’ Village. Several ongoing social housing contracts and a focus on growing its external customer base have resulted in a comfortable pipeline of contracts for the current financial year.
  • Commercial Property – An annual profit of £0.7m represents a substantial increase on the previous year (2014: £0.4m) with overall asset value of £5.8m. The Group completed the sale of its first commercial property development at Dalkeith for £2m marking a significant milestone.
  • Lettings – Income totalled £3.4m (2014: £3.3m) and overall asset value of £60m. Underperforming assets were disposed of to fund a reinvestment strategy outwith Scotland.
  • Strategic Land – Investment of £0.8m across the year grew the company’s English landbank to morethan 1,310 acres across 20 sites. Three planning applications were submitted in Scotland, for 423 units, and over 1,460 units were secured from greenbelt near Bath, Gloucester and Liverpool. The first English land sale was also settled, to Persimmon Homes at Shavington, Cheshire.
  • Chief executive Ed Monaghan said: “This year marks our 90th in business and the fourth of our five year plan. We have consolidated last year’s outstanding performance with another period of growth and improved profitability.

    “While we have seen footfall and sales at our sites increase, like every other housebuilder, we have been watching with interest the situation with the scheme that is set to replace Help to Buy (Scotland). The original initiative was a real boost to the industry when it was introduced but we saw it fully subscribed in just a few months this year and we await with interest the detail around the new scheme.

    “Our other business units have now established themselves as profit centres with milestones including our first land sale in England and our Commercial Property division’s first development sale. The focus now is on growing income from external sources to ensure we are fully exploiting our skills base and capabilities.”

    To celebrate its 90th anniversary yesterday Mactaggart & Mickel Group launched the second edition of its ‘Home Builders’ history book.

    The launch, which took place at The Mitchell Library in Glasgow, was hosted by historian, author and broadcaster, Neil Oliver who provided insight on the importance of housing as a marker for time.

    (from left) Andrew Mickel, Bruce Mickel, Neil Oliver and Ross Mickel
    (from left) Andrew Mickel, Bruce Mickel, Neil Oliver and Ross Mickel

    Initially commissioned by Mactaggart & Mickel Group 15 years ago to celebrate its 75th anniversary the second edition of ‘Home Builders’, which was researched and produced by Historic Environment Scotland highlights the company’s historical milestones and how it has weathered the economic difficulties of recent years and demonstrated a willingness to adapt and change in order to grow.

    Bruce Mickel, chairman of Mactaggart & Mickel Group, said: “As a family business we were keen to celebrate this milestone in a memorable way as so few make it this far. The Home Builders book charts the landmarks in our history that have helped us get to where we are today and demonstrates the family ethos felt throughout our workforce that has, I believe, been fundamental to our success.

    “The event was a fitting celebration of our 90 years in business and allowed the family to share our favourite moments and stories from the company’s history. Now we can look forward to securing 100 years and beyond.”

    Historian and broadcaster, Neil Oliver, who hosted the event said: “I am delighted to be celebrating 90 years of Mactaggart & Mickel and a fascinating history into almost a century of house building in Scotland.”

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