Planning delays hit Muir Group's housebuilding arm but Fife firm 'pleased' overall

Overall turnover rose 5 per cent to £89.3m, from £84.9m the year before, according to the latest accounts. Revenues were boosted by a new property development project coming on stream and an increase in the number of external contracts delivered by the group’s contracting arm, Muir Construction.

The Muir Timber Systems business showed an improved financial performance with an increase in contracts won at competitive tender. Turnover for this division lifted 18 per cent to £9.1m. The core Muir Construction arm saw turnover dip to £51m, from £53.7m a year earlier, with pre-tax profit recorded at £916,000, down from £1.4m.

Muir Homes, the Inverkeithing-based company’s housebuilding arm, reported a sharp reduction in turnover to £25.1m, from £34.8m the year before. Private housing sales declined, with 98 houses sold within the financial year compared to 145 previously. Despite this, average value per house rose 6 per cent to £256,000. The lower turnover was said to be a direct result of planning delays impacting the opening of new sites and the delivery of “much needed housing”. Inflationary increases in material and labour costs, coupled with “significant” mortgage interest rates, also made this part of the business challenging.

Muir said: “We are pleased to mark 50 years in business with a strong set of financial results overall. As we celebrate this milestone year, we have renewed our focus on delivering a pipeline of high quality projects on time and on budget. We are continuing to operate in a significantly challenging environment compared to previous years. In addition to planning delays and inflationary cost increases for material and labour, the rising cost of living and high mortgage interest rates remain challenging for our business and the industry across the board.”