RJ McLeod happy with £6.7m profit

ONE of the contractors behind the refurbishment of Edinburgh's Usher Hall and the creation of Croy railway station's park and ride facilities has posted "healthy" profits despite the civil engineering market becoming "increasingly competitive".

Directors at RJ McLeod Contractors said they were "pleased to report a healthy profit of 6.7 million" in the year to 31 October, despite the figure being well below 2009's 10.7m profit.

Accounts filed at Companies House showed that turnover edged up from 77.8m to 78.9m, following work on roads including the A82, A75 and A822.

Writing in the directors' report, company secretary Norman Judd said the business was "on a strong financial footing", with no borrowings and shareholder funds growing from 22.2m to 22.3m.

Despite the fall in profits, the company continued to invest in new plant and equipment, with spending on kit rising from 2m to 2.2m.

Judd added: "Civil engineering and building are not immune from the current recession and consequently the market is becoming increasingly competitive. The directors have acknowledged market conditions when establishing the company's targets for 2011."

But Judd said he expected this year's trading to be "positive".

RJ McLeod has continued to benefit from the growth in Scotland's renewable energy sector, with wind farm contracts in the past year including work at Beinn an Tuirc in Argyll, Craigengelt in Stirlingshire and Edinbane on Skye.

Projects carried out by the firm in the marine sector include work on Hawes pier at South Queensferry in the Firth of Forth and the Smith embankment development for the North Sea port of Peterhead.