Housebuilder Stewart Milne back up for sale as profits rise

Stewart Milne Group focuses its activities on Scotland and north west England

Housebuilder Stewart Milne is in talks with "seriously interested parties" after it was put back up for sale.

The development comes after the Aberdeen-based group reported a surge in pre-tax profits for the last financial year.

The company was originally put on the market last year after founder Stewart Milne announced his retirement.

But the sale was suspended in December, with the company citing "economic uncertainty" and market conditions.

Mr Milne, who started the business in 1975 after qualifying as an electrician, also put his retirement on hold.

• Sale of housebuilding firm Stewart Milne put on hold

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The decision to restart sale talks came after the company recorded pre-tax profits of £16.5m for the year to the end of October - its highest level in more than seven years.

The move was also prompted by an improvement in the housing market, with Stewart Milne reporting strong sales across Scotland and north west England in the first half of this year.

The group - which has offices in Aberdeen, Edinburgh, Glasgow and Manchester - said last year's profits were boosted by the sale of its timber systems business in December 2021 and "significant efficiencies".

However, turnover fell year-on-year by £48.7m to £172.4m as unit sales fell by nearly 30% to 583. The housebuilder attributed the fall to "reduced spend on land in the previous two years, as a direct result of Covid".

The company was founded by Stewart Milne in 1975

Chief executive Stuart MacGregor said the company's initial sales process had attracted significant interest before economic uncertainty prompted it to suspend the move.

He added: "Since January 2023, however, the UK housing market has rebounded to more normal activity levels with robust house prices and demand.

"Reservation levels for Stewart Milne homes, across Scotland and north west England, have exceeded those for the same period in the previous year.

"This exceptionally strong performance and more positive market conditions, along with renewed interest from potential buyers, have led to our decision to go back out to the market.

"We already have a number of seriously interested parties."