Investment business Murray Capital Holdings plunged to a pre-tax loss and saw revenue fall sharply in its last trading year, though the sale of assets in recent months will help it recover and diversify.

It sold a large development site on the edge of Edinburgh and its interest in an insurance company to raise capital for re-investment after a “challenging” year, particularly in the steel sector.

This saw turnover fall to £68.3m in the year to the end of June last year from £84.3m in the previous 12 months. That led to a pre-tax loss of £1.7m (2023: £4.3m profit). 

Since the close of the financial period, the company, led by David D Murray, has made “material progress” in diversifying its assets and unlocking future opportunities, it said.

In February this year the company sold the Redheughs site at the Gogarburn junction in Edinburgh to Places for People, one of the UK’s largest social enterprises.

This will see 1,300 homes of various types and tenures built, including more than 330 affordable homes, extensive greenspace, a primary school and local amenities.

The sale marks a major milestone in the land and property strategy of Murray Estates, the property development business, paving the way for significant receipts in the coming years.

The company says all future proceeds from Murray Estates will flow through to Murray Capital to be re-invested.

Other key transactions include the sale of its interest in Blackford Insurance and Murray Estates’ Neighbourhood Centre at Kingdom Park in Kirkcaldy, further strengthening its cash position for investment.

The company moved to its new head office at Rutland Street in March last year.

With no external third-party debt at the group level, Murray Capital said it remains financially robust and well-positioned to capitalise on new opportunities across its diverse portfolio.

Shareholders’ funds decreased to £33m in the year, from £46m, primarily due to a debt-for-equity swap within Murray Estates. The firm’s net cash also decreased to £4.2m from £6.1m at the close of the previous financial year.

Mr Murray, managing director of Murray Capital Holdings, said: “We are pleased with the momentum that we have built in our estates portfolio, particularly with the sale of Redheughs in January, which we expect to support a notable financial uplift for the current financial year.

“This is despite wider market challenges, including the government’s proposed changes to Business Property Relief.

“Family businesses like ours play a vital role in driving sustainable growth, creating jobs, and investing for the long term.

“The proposed changes risk undermining this, but we remain optimistic that policymakers will recognise the importance of supporting businesses that contribute so much to the UK economy.

“We will continue to champion investment, innovation, and the next generation of entrepreneurs.”

The family also announced last month that Sir David Murray, Murray Capital’s chairman, will launch his autobiography, entitled ‘Mettle’, on 2 July. The book will look back on his life in his own words.

Murray Capital continues to provide support to The Murray Foundation, with a percentage of profits directed to the family’s foundation each year to fund support for several different local charities in a time of great need.

In total, the Murray Foundation supported 15 local charities across the financial year, covering issues from higher education to hospice care. Supporting the foundation has become an increased focus for the family.