Civil engineer RJ McLeod profits leap 60 per cent to £12.3 million

Accounts newly-filed at Companies House reveal as pre-tax profits increased to £12.3 million in the year ended November 1.

The rise in profits at RJ McLeod, one of Scotland’s biggest civil engineers, which carries out work in the roads, marine, infrastructure, energy, public realm and waste sectors, came as turnover leapt to £116.3m from just under £100m in 2014.

The group described “substantial ongoing investment in plant and transport”.

A statement from joint managing director Bruce Clark, that accompanied the accounts, said: “Trade has benefited from the substantial ongoing investment in plant and transport, with £4,167,881 being invested during the course of the year ending 1 November 2015 (2014 – £3,521,924). Looking forward, the board’s strategy of maintaining an up to date fleet remains unchanged.”

According to the accounts, the company, which has offices in Glasgow and Dingwall, ended the year with shareholder funds of £37m, compared with £32.1m stated in the prior year’s accounts.

Mr Clark notes in his report that, with no borrowings,” the group remains on a strong financial footing.”

Mr Clark’s statement added: “The group’s workload is in healthy shape and with the firm foundation of excellent staff and good quality plant and transport linked to structured management and financial discipline, the directors are confident for a positive out turn in this year’s trading.”

The accounts show that directors’ remuneration jumped to £3.31m during the year, having been booked at nearly £2.3m in 2014, with the highest-paid director receiving £865,979 – up from £602,094. Overall staff costs, including directors’ pay, leapt to nearly £25.5m from £20.6m in 2014.

That came as average staff numbers rose to 425 from 386. Total dividends of £4.72m were paid out to shareholders, the same as in 2014, the accounts state.