Construction firm hails Wester Ross housing project a success as results posted
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A CONSTRUCTION company has hailed its first foray into the private housing market in Ross-shire a success.
Compass Building and Construction Services, which operates across the Highlands and islands, said all 15 units it had built in Ullapool had been sold or reserved.
But in a strategic report accompanying the firm’s latest accounts, it said: Whilst this model has proved to be successful we shall continue to be selective about which markets we enter as developers." It said its core business is developing mixed tenure housing schemes though competitive procurement and joint venture partners "as opposed to the step change of being an out and out housing developer in our own right".
Looking ahead, the Inverness-based firm hopes materials will cross borders without a hitch following Brexit.
It comes after the firm experienced increased turnover for the year ended September 2019 compared.
The report accompanying its latest accounts said: “Given the levels of secured and committed workload for 2019/20, there is nothing to suggest that performance will differ significantly from the previous year, though we remain ever vigilant and alert to any changes, as yet unknown, that will follow the outcome of, and reaction to, the Brexit negotiation. It would be our hope that in the event that the Brexit decision is upheld, that the previously enjoyed smooth passage of materials across borders would not be compromised.”
Turnover increased from £27,013,294 in 2018 to £31,549,329 last year.
Pre-tax profit dropped from £1,494,313 to £1,425,133.
The report stated: “Profit on core activities were slightly down on previous years figures, curtailed owing to the recognition of difficulties experienced on one exceptional contract - the decision having been taken to ensure that all costs associated with same have been fully traded out in the current year.”
It went on: “It is particularly pleasing to be able to report an exceptionally healthy carry forward of workload into the 2019/20 trading period with turnover set to be sustained in line with last year‘s record throughput.This consistency of volume is largely fuelled by the needs and ambitions of our valued repeat trading partners augmented by the continued and encouraging emergence of new business accounts as the industry continues to be buoyant across many sectors.”
The average number of employees increased from 98 in 2018 to 113 last year, while staff costs increased from £4,514,902 to £5,380,947.
The report added: “Despite concerns in other sectors of the economy, the construction sector, at least within the Highland market, continues to perform strongly with present concerns relating to resource shortages and the availability of quality tradespeople to maintain and produce the high quality of product that is synonymous with Highland construction while we move through a period of increased output.
“Clearly, ongoing uncertainty continues to have a negative impact on the wider economy. However, with specific regard to the construction industry, it is pleasing to note that a common theme associated with the major political parties is the championing of increased inward investment for housing, infrastructure and services.
“Against this backdrop it will be important for organisations such as ours to ensure investment in apprenticeships and skills/technological development so that we not only maintain but also improve current employment and performance levels within the industry.”
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