Aberdeenshire-based housebuilder Bancon Group cements 'another strong year of trading' but sees profit drop

Banchory-based housebuilder Bancon Group has outlined a bullish outlook after “another strong year of trading”, with double-digit growth in turnover and record homes sales, but some erosion of profit on the back of a write-down.

From left: Bancon Group’s operating board - David Crawford, Deeside Timberframe MD; Senga Buntrock, people, culture and organisational development director; Kevin McColgan, Bancon Group CEO; Jamie Tosh, business operations director; and Andrew Tweedie, group finance director. Picture: contributed.

The firm has for the year ended March 2023 reported a 16 per cent increase in turnover to reach £132 million, with a 33 per cent increase in its homes business. It has also reported operating profits of £4.6m, despite headwinds buffeting the industry, but added that pre-tax profits of £1.8m were slightly behind the £2.7m reported in the previous year due to writing down the value of a long-held development.

Looking at its Bancon Homes arm, it said a record level of activity in the year delivered turnover of £68.4m compared to £51.3m in the previous financial year, while the division brought forward future phases of its developments in Aberdeenshire and started two new developments in the Central Belt during the period.

Bancon Construction clocked in revenue of £35.5m, nearly a fifth ahead of the previous year, while pre-tax profits were the highest reported since 2007, attributed to factors such as tight margin control. The unit added that it has a strong order book with turnover in excess of £40m secured in the current financial year.

As for Deeside Timberframe, income came in at £28m compared to £32.6m 12 months previously, with a cited overall slowdown in the market in the second half. The specialist in the design, manufacture and installation of timber systems says it is investing in facilities and production efficiencies, as it seeks to deliver a step-change in growth across Scotland and England.

The housebuilding and construction group, which was founded in 1975 and now has 260 staff, has also renewed its banking facilities with Santander to December 2026, while it forecasts a positive outlook for 2023-2024. Chief executive Kevin McColgan, who joined the organisation in September of this year, said the “robust” results “demonstrate the success of our current strategies and the confidence in our future prospects”. He added: “Our strong financial position, positive sales performance in the current financial year, and strong forward orders means we are exceptionally well-placed to invest in and deliver our growth ambitions even against the backdrop of the rising costs of raw materials and the wider economic uncertainties.”