Scotia halves turnover but returns to profit

LUXURY house builder Scotia Homes has returned to profit despite a cut in turnover by nearly half in 2010.

The firm said market conditions remained "extremely difficult" which resulted in a "significant reduction" in its activity. The firm completed and sold 130 units in the year to 30 April compared to 187 in 2009.

The Ellon-based firm saw turnover fall from 40.7 million to 21.1m. But the firm made a 4m profit after sustaining losses of 2.2m the previous year, mainly due to an 8.2m write down on the value of its land and work in progress.

This compares to 2008 when Scotia made profits of 11.34m on a turnover of 80m.

The family-owned housebuilder's latest figures are on a like for like basis after it restructured its southern division based in Angus. The firm cut 55 jobs in the year.

Scotia said the short-term outlook for the business "remains challenging" but that there were signs of an "increase in consumer confidence". This was despite the market being "hampered" by a lack of mortgage lending especially to first time buyers as well as "extremely slow progress of planning authorities in providing planning consents".

In November, the business won planning permission on a controversial development of 247 homes next to Ellon Castle after its application attracted 185 objection letters.

The company said it had advance sales of 146 units at the since April.