Stewart Milne profit down at £25m

Stewart Milne has reported a rise in turnover to £420m but a drop in pre-tax profit to £25m.

The figures cover the 12 months to 30 June 2008.

In the previous year, Milne’s turnover of £350m generated a profit of £42m.

The latest group turnover (including £60m of inter-company trading) was made up of contributions from:

• £230m – homes
• £120m – construction
• £90m – timber systems
• £50m – developments

Glenn Allison, managing director, said: “In the difficult trading conditions, a 20% reduction in operating profit is a relatively good performance. Our pre-tax profit of £25m was impacted by an increase in interest charges arising from the acquisition we made last year.”

The impact of trading conditions on the housebuilding operation between January and June this year were reported as being “particularly severe”.

Chairman Stewart Milne confirmed that 278 employees have been made redundant. the figure was slightly less than the potential figure announced in July. Most who left took advantage of what Milne called “enhanced voluntary packages”.

The consultancy process resulted in fewer employees being made redundant than originally projected.

Allison said: “The current market conditions have delayed our plans for expansion but not derailed them. We will continue to invest in the business to underpin expansion at our housebuilding and timber-frame businesses across the UK.”