Housebuilder Stewart Milne Group reports strong recovery

The company said it had benefited from increased demand for its homes

Housebuilder Stewart Milne has reported a "strong recovery" after narrowing its losses in the last financial year.

The Aberdeen-based group said turnover for the year to 31 October rose by £36m, to £306m, as market conditions improved and demand increased.

Its overall loss fell from £71.5m the previous year to £8.1m.

The group said it had exceeded its targets for recovering from the protracted downturn in the north east and the impact of Covid-19.

It added it was now "incredibly well-positioned for strong, sustainable and profitable growth".

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The company, which was put up for for sale last month following the retiral of founder Stewart Milne, saw turnover from its housebuilding operations climb by £16m to £209m.

It reported renewed demand in the Aberdeen market, with sales prices rising following five years of decline as a result of the global oil and gas downturn.

Its result statement said: "Market sentiment in the north east of Scotland is more positive than it has been for many years and we continue to review opportunities as the local economy expands."

During the financial year, the group completed a strategic review, which included selling off its timber frame business in order to focus on housebuilding in its core markets in Scotland and north west England.

Stewart Milne also decided to redesign its entire homes range to cater for changing trends, including home working.

Founder Stewart Milne announced his retirement last month

In the results statement, chief executive Stuart MacGregor said the company had overcome "unprecedented challenges" in the supply chain, including the availability and rising costs of people and goods.

He said: "Our streamlined approach, central to which was the new homes range, has enabled us to capitalise on the favourable market conditions over the past 18 months."

Finance director Fraser Park added: "During the year, we invested in a number of new sites across all our regions and our current forward sales position is the strongest we have seen in many years.

"This, coupled with our improved competitiveness and financial position, signal supreme confidence in the future, sustainable and profitable growth of the business."