Awaiting big decision
Investments push Murray Capital Group into £500,000 loss
David Murray: awaiting decision
Investment in land helped push Murray Capital Group into a loss as the company awaits the outcome of a major development proposal near Edinburgh airport.
The company, which manages the interests of Sir David Murray’s family businesses, reported a loss of £500,000 for the year to the end of 2018 against a £1.1m profit last time.
Turnover increased 7% to £78.7m (2017: £73.4m), while net cash fell to £8.7m (2017: £10.3m). Shareholder funds decreased to £47.2m (2017: £48m).
The company said higher turnover was driven primarily by an increase in revenues within Murray Metals, the group’s metal stockholding and processing business, and largest trading asset. This was in spite of ongoing difficult market conditions.
The fall in profit was a result of continued investment in Murray Estates, the strategic land business, and the results of subsidiary companies.
David D Murray, managing director of Murray Capital Group, son of Sir David, said: “We are satisfied with the company’s performance in 2018. This is a long-term investment business with the patient deployment of capital seeking long-term returns, and we made solid progress with several major projects that will deliver considerable long-term value.
“This continues into 2019. In May, work began at Kingdom Park in Fife, which will deliver nearly 1,100 much-needed homes in Kirkcaldy.”
Mr Murray recently criticised the decision of the Scottish Government minister to call in a huge development proposed for a site near Edinburgh airport.
In today’s statement, he said: “We await the decision of the Scottish Government with regards to our Edinburgh Garden District and International Business Gateway proposals, both of which have received full planning approval from Edinburgh City Council, and are hopeful of positive outcomes soon.
“The speed of planning and development remains a significant constraint on strategic projects that will bring jobs and income to the Scottish economy.
“Murray Capital Group’s structure – wholly owned and run by the Murray family, with zero debt, and investing off our own balance sheet – allows us to take a flexible, long-term and sustainable approach, benefitting our business, strategic partners and the wider economy.”
The family business has been operating in Scotland for more than 40 years. Their strategy is entrepreneurial and capitalises on opportunity, which reflects their heritage and background. The group’s companies include real estate, steel stockholding, wine making and distribution, together with an investment portfolio of quoted and unquoted businesses.