Downbeat forecast from Walker

WALKER Holdings, the building group based in West Lothian, expects turnover and margins to remain flat this year amid what the family-owned firm said was still a "very difficult market".

The group, headed by chairman Mike Walker, is continuing to screw down on costs after a one-off payment of nearly 4.3 million to insure its pension obligations pushed the business into the red. However, directors say the firm remains in good shape to come through the downturn, despite the challenges still facing the industry.

The comments were included in the group's financial accounts for the year to 30 September, which showed a slight rise in turnover to 18.1m as the average property priced edged up from 204,000 to 206,000.

Pre-tax profits would have come in at 3m if not for the pension fund injection. After taking that into account, it made a loss of 1.2m against the previous year's 2.5m profit.

The group sold a total of 71 residential units last year. Current building includes sites in Falkirk, Tranent, Kirkliston, Cumbernauld and Bonnyrigg, with work due to begin soon at Hopefield and Dumbarton.

"The group is continuing to take forward its strategic land opportunities involving over 5,000 new units," Walker said.

Total directors' pay more than halved last year to 734,000, with the highest-paid director receiving 270,000, compared to 603,000 in the previous year.