Year of uncertainty
Mactaggart & Mickel ‘optimistic’ despite fall in profits
Ed Monaghan (right): ‘We have made remarkable progress’
Housebuilder Mactaggart & Mickel has reported a fall in profit during a year of political and economic uncertainty.
Pre-tax profit for the 12 months to the end of April came in at £12.1 million against £14.2m in 2018.
This was in spite of an uplift in turnover to £84.7m from £82.3m in the previous year.
Chief executive Ed Monaghan said the business had been simplified and he remained optimistic
The family-owned company has seen excellent progress with its recent expansion into England, with several developments under way throughout Oxfordshire.
Its first development in the county is due to be launched shortly followed by two further sites next year.
The diversification strategy, designed to smooth out the peaks and troughs of the construction cycle, saw the company invest in new business areas together with new geographical markets.
This includes expanding its private rental sector portfolio in London and making several significant investments which will bear fruit in years to come, bringing the company’s investment in England to more than £70m.
Mactaggart & Mickel has invested in a commercial property portfolio outside the European Union for the first time – commercial properties in two thriving areas of New York. It also invested in about 50 early stage companies.
Mr Monaghan said: “We have posted another strong set of financial results, which is particularly pleasing given the uncertain political and economic landscape facing the economy.
We have made remarkable progress in key areas and created strong foundations to allow us to expand and diversify– Ed Monaghan, MacTaggart & Mickel
“This year we simplified our organisational structure to create two new management boards – Homes and Investments. This new structure will facilitate greater collaboration and shared expertise to drive forward our continued diversification.
“There have been a number of key highlights this year. These include; launching our first English development and appointing Joanne Casey as Managing Director for our Homes division in England.
“We have made remarkable progress in key areas and created strong foundations to allow us to expand and diversify.
“The outlook for the year ahead is optimistic as we continue to excel in core business areas whilst having the flexibility to pursue exciting long-terms goals to further grow and flourish.”
The homes division posted a solid performance with turnover rising to £66.5m (2018: £63.2m) and gross profits remaining steady at £12.9m.
The division sold 225 homes this financial year (2018: 196 homes) with new housing developments being launched at Stewart Gardens in Newton Mearns, the conversion of B-listed Carrongrove House near Denny in Falkirk and St Jude’s Meadow in Oxfordshire.