Housebuilder and construction company Bancon Group has announced its results for the year ending 31 March 2017 which show a significant improvement in trading performance in a challenging market.

The Aberdeenshire firm recorded an operating profit of £300,000, against a loss of £2.2 million in 2016, as a result of improved trading and cost efficiencies following the restructure during the previous financial year.

Turnover reduced from £110m to £55m, reflecting the shorter trading period for these accounts, compared to the previous year, and taking into account the reduction in the construction business as a result of a decision to concentrate on more profitable activities.

The group also announced the appointment of a new finance director with Andrew Tweedie set to join Bancon on October 2. A chartered accountant with 14 years’ experience, Mr Tweedie qualified with Deloitte and then spent ten years with John Menzies plc, where he held senior commercial and finance roles at divisional and group levels.

He joins Bancon from Stewart Milne Group where he held the position of group head of finance. Mr Tweedie replaces Allan Clow who has taken up the role of managing director of Bancon’s homes business.

Despite the on-going challenging market conditions in Aberdeen and Aberdeenshire, Bancon Homes delivered a strong performance, ahead of expectations. The housebuilding division also launched two new developments in the financial year at Oaklands, Banchory and Monument View, Inverurie. Bancon Homes expects to double activity levels in homes in the coming year.

Bancon Construction reported a dramatically improved trading performance following the introduction of a more efficient and effective structure. The business now operates from a lower and more flexible cost base which is being progressed positively under a new management team.

Deeside Timberframe also enjoyed another excellent trading period, significantly increasing profits and benefiting from its wider geographical spread and continued strength of the self-build market.

John Irvine, chief executive of Bancon Group since 2015, said: “These results demonstrate that the group’s strategy has been successful and is now starting to bear fruit. It was anticipated that this financial year would be a transitional one and that has been the case.

“We are very pleased with our performance in the homes market and are optimistic about the current year which is forecast to double activity in line with our plan. While construction turnover is down, we are in a much more robust position having restructured the business and focused on more profitable workstreams.

“All businesses in the group have a much stronger forward sales position than this time last year, giving us confidence in our long-term strategy and setting us up for much improved results in the current year.

“We are delighted to have Andrew Tweedie on board as our new finance director. His sector experience and astute commercial focus will be invaluable to us in delivering our growth plans.”