Murray family investment firm unveils 'solid rather than spectacular' full-year performance

The family investment vehicle of veteran Scottish businessman Sir David Murray has hailed its latest full-year results as a “solid performance, rather than a spectacular one” amid a challenging macro environment.

Murray Capital, which is wholly owned by the family and since 2021 has been run by the former Rangers owner Sir David’s sons David and Keith, has in new accounts filed with Companies House reported turnover for the group from continued operations of £84.3 million in the year ending June 2023, making a 4 per cent year-on-year drop. The firm said the decrease was mainly driven by the impact of falling steel prices on the Murray Steels business and the lack of any significant land sales by Murray Estates during the period.

The Edinburgh-based organisation says its principal activities are the provision of metal stockholding, processing and distribution, the development of land for the residential and commercial sectors, investment in private and public companies and property, and wine importing and distribution. It added that profits fell to £4.1m from £12.8m as the price of steel normalised after a record 2022. Shareholders’ funds grew by 5 per cent to £46.2m, and net cash fell to £6.1m from £7.2m.

The group also said it made both new and follow-on investments, the largest single one of which was buying a property on Rutland Street, in the west end of Edinburgh. It will, once refurbishment is complete next year, be the new head office for Murray Capital, which has been based in nearby Charlotte Square for 25 years.

MD David Murray says: 'Last year was a solid performance, rather than a spectacular one, but in the macro environment we’ve been operating in, I think it’s reasonable to consider that a success.' Picture: contributed.

Furthermore, it in April sold its stake in Scottish independent financial advisory firm Argyle Consulting to the management team – saying it exited at a decent return on its original investment 20 years ago. Additionally, the group in June sold its share of Singapore-based steel firm Murray Energy PTE to its management.

David Murray, MD of Murray Capital, said: “Last year was a solid performance, rather than a spectacular one, but in the macro environment we’ve been operating in, I think it’s reasonable to consider that a success. The current financial year has started positively, albeit trading is behind the last couple of years. We will continue to take a long-term and patient view of our various investments.

“Progress in the Murray Estates portfolio has not been as quick as we would have liked, but we are not immune to the slowing down of the housing market,” he added, and welcomed Scottish housing minister Paul McLennan recently identifying the west of Edinburgh as a key strategic location for new housing.

The Murray Capital boss continued: “Edinburgh Council’s ‘Towards West Edinburgh 2050’ strategy would appear to be a very positive development in that context too, as we have more than 500 acres of land in western Edinburgh that should be material in the city’s expansion in the coming years.” He said this includes 23 acres at the International Business Gateway site, the firm’s plans for which, including 200 apartments, were approved by the council but called in for review by the Scottish Government in 2019, and “we are still awaiting a final decision”.

Murray also said: “More positively, we are now in exclusive negotiations with a housing developer for our Edinburgh Garden District development, having secured final outline planning approval in 2022 for 1,350 homes.”