POSITIVE trading and a strong recovery since the easing of lockdown restrictions has resulted in Bancon Group delivering a profit in 20/21 despite the impact of COVID.
The Aberdeenshire housebuilding and construction group, which has posted results for the year ending 31 March 2021, is also predicting significant growth in turnover and profit for the current year with record levels of activity in its timberframe business, new construction contracts and extremely positive homes’ sales, where 75% of the full year sales targets have already been secured only four months into the new financial year.
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The latest accounts, for the year April 2020 – March 2021, reveal that turnover dropped from £85million to £73.6million as a direct result of the loss of almost four months trading due to the suspension of all trading activities and the associated disruption caused by the pandemic.
However, the underlying strength of the group’s three businesses, coupled with a robust recovery and strong trading performance in the second half of the year, has resulted in an operating profit of £1.4million.
Bancon Homes continued to perform against its ambitious growth targets and, since coming out of lockdown, saw a marked improvement in sales rates in the North-east of Scotland where the market has been depressed for several years. Three additional developments were acquired during the year, including Bancon’s first site in the Central Belt, where sales are out-performing expectations.
A relatively quick return to the high activity levels experienced before the pandemic drove positive trading in the second half of the year at Deeside Timberframe. A strong forward order book and the highest ever levels of activity signal a significant uplift in the coming year.
Notwithstanding the COVID-imposed shutdown of activity, Bancon Construction delivered a year-on-year increase in turnover and a modest pre-tax profit.
John Irvine, chief executive of Bancon Group, said: “The positive momentum since the easing of lockdown restrictions has continued into the current financial year with exceptionally strong levels of forward sales in our homes business, record levels of activity in timberframe and recent construction contract awards.
“With the benefit of a full-year’s uninterrupted trading, the positive forward sales position and a continuation of our strong underlying trading performance, the group is well-placed to weather the current headwinds regarding materials supply being experienced by the industry and deliver a significant increase in activity and profitability in the coming year.”
Mr Irvine added: “We continue to pursue our growth agenda, building on the exceptional performance of our timberframe and construction businesses and the expansion of our homes’ business into the central belt.
“We are very grateful for the support of our employees, customers, supply-chain and funders which has enabled us to navigate our way through a challenging year and emerge in a strong position for long-term, sustainable, profitable growth.”
Over the period of lockdown, Bancon Group took decisive action to reduce expenses and conserve cash, including making use of the Government’s Job Retention Scheme which allowed employees to be furloughed and avoided significant redundancies.
Bancon Group, head-quartered in Banchory, Aberdeenshire operates in North-east and Central Scotland and employs over 240 people.
