For the second consecutive year, Scot JCB has reported record profits, increasing turnover from £103m to £117.2m…
Growth across the construction sector has benefited many different parts of the industry, with plant equipment gaining significantly. Last month, UK-based plant equipment rental firm A-Plant reported increased profit due to a buoyant US market. This month, Scot JCB said it had also seen its profits rise.
Growth in the Scottish construction sector has helped the firm, which saw its profits increase by nearly seven percent to £4m in the year ending 31December. This figure beats Scot JCB’s pre-recession profit record, as turnover increased from £103m to £117.2m.
Scotland, like the rest of the UK, saw a major push in housebuilding following the recession, as a shortage of affordable homes became a significant problem. This increase in housebuilding activity means the firm posted profits of £3.8m in 2013. Comparatively, its highest profit had been £3.4m in 2007.
Scot JCB has 12 depots across Scotland and the north of England. Around 20 per cent of its business is made via the four English sites.
Steve Bryant, who has 90 per cent shares in Scot JCB, said the profits gained would be put back into the company. He also said he would be “disappointed if we don’t get to £125m” turnover during this year.
“The market is buoyant, our construction customers are very busy all over Scotland and the north of England, and we are getting the benefit of that,” he said.
“The downside is that the margins are under threat. We have suffered there a little bit.
“In our heyday before the recession of 2008 we were making 3.8 per cent – today that will be 3.4 per cent.
“While we are doing a lot more we are still marginally behind where we were in pre-recession teams in terms of profit retention.
“But we are in a good place and pushing on.”