In the latest accounts for the privately owned construction company, which operates throughout Argyll and the Islands, directors said the Scottish Government’s Help to Buy scheme has resulted in a general increase in enquiries leaving directors anticipating a “steady improvement in private house sale numbers and average prices”, the Herald has reported.

Jane MacLeod, company secretary, said the Lochgilphead-based firm recently sold three homes in Oban under the Help to Buy scheme.

The firm’s experience provides further evidence the scheme boosted the market, by helping people put the kind of deposit on a home they need to get a mortgage.

However, noting the current year’s funding has been exhausted, Ms MacLeod echoed calls by housebuilders for the Scottish Government to put more money into the scheme.

In their report in the company’s accounts for the year to 31 May directors of M & K MacLeod stated: “The construction sector retains a level of uncertainty due to the effects of economic instability, stock market uncertainty and increased cuts in public spending.”

The privately-owned firm faced other challenges during the year.

Directors noted: “Whilst completing key major contracts on time and within budgets, adverse weather conditions together with planning de lays resulted in a number of new contract starts being delayed.”

Founded by twin brothers Murdo and Kenny MacLeod in 1975, the company counts local authorities and housing associations among its major customers.

Turnover fell to £17.3m in the year to May from £20.7m in the preceding period. But directors said close attention to costs and strong contributions from the group’s maintenance and quarrying divisions helped M & K MacLeod increase gross profits to £2.1m, from £1.95m last time.

Ms Macleod noted work has started on a project delayed from last year while one will get underway soon.

She said the company expected to increase turnover in the current year and had maintained employee numbers. The average monthly number of people employed by the group was 205 in the year to May in line with the preceding year.

M & K MacLeod made £710,000 pre-tax profit in the year to May and £827,000 in the preceding year.