Robertson axes jobs as profit plummets

Robertson has slashed the workforce at its housebuilding arm by a quarter and the Scottish contractor’s new Highlands-based contracting operation is also feeling the pinch.

Executive chairman Bill Robertson hoped to achieve a turnover of £20m in the first year of trading at the new Highlands division but has admitted workload will fall well short.

Robertson said: “The first year turnover should be down by 30%. Projects are being put on hold or delayed all over down to the financial crisis. That is happening.”

The firm’s contracting operations are split into regional operating companies and the recent launch of the Highlands operation and a Midlothian arm takes the number of businesses up to seven.

In the group’s last financial year to November 2007, the then five businesses raised turnover by £17m to £127m. Even with two new subsidiaries workload will not exceed £130m this year but should accelerate to £180m in 2009.

Robertson continues to take on more workers directly across its contracting operations and the group workforce numbers 1,000. But 28 people have been cut from the homes division, reducing the staffing to under 90.

“Up to November 2007, it was pretty good for the homes and timber kit businesses but since then they have both had a torrid time,” admitted Robertson.

Robertson Homes turned over £83m in the last financial year after selling 435 homes to produce a pre-tax profit of £6.2m.

The business started this financial year with a target of selling around 470 units but Robertson said: “If we sell 150 this year we’ll be lucky.”

As a group, Robertson’s pre-tax profits slumped to £11.9m from £14m in 2007, despite turnover advancing to £247.4m from £190m.