Scot JCB says sector back to pre-recession levels as it posts record sales

Scot JCB managing director Steve Bryant said the Glasgow-based company last year made £3.8m pre-tax profit -beating the previous record which was £3.4m in 2007.

The company made £2.4m pretax profit in 2012.

Scot JCB also enjoyed a boost to sales as a result of the acquisition of the Kelso & Lothian Harvesters business in April.

Mr Bryant went on to explain that that the company is benefiting from booming demand for equipment from housebuilding firms in Scotland amid the economic recovery in the country, supplemented by an increase in other forms of construction activity.

“The housebuilders and ground work contractors are flat out,” said Mr Bryant, who had to lead Scot JCB through a run of challenging years after the financial crisis of 2008 triggered a deep recession.

The improvement in trading conditions was writ large in Scot JCB’s results for the year to December, during which the company finally beat the record it set before the boom in the housing market turned to bust.

“Our profit – £3.8m before tax – beat the previous record which was 2007 when we made £3.4m,” said Mr Bryant.

Mr Bryant said that with three months of the current financial year still remaining, Scot JCB is on course for another decent performance.

Some housebuilders have given encouraging updates on the state of the market in Scotland in recent weeks.

In August, Persimmon said it sold 700 new homes in Scotland in the first half of 2014 – 60 per cent more than at the same stage last year.

Chief financial officer Mike Killoran said the official Help to Buy scheme had boosted demand for housing in Scotland. In the year to December, Scot JCB increased sales to £103m from £91.4m.

The group had £18.5m net assets at the end of December, up from £16.2m at the end of the preceding period.

Mr Bryant led a £5m management buyout of Scot JCB from the former Hewden Stuart in 1998.

In the accounts, directors said the growth in sales and profits reflected growth in market share, in addition to an upturn in the economy.

They added: “Since the year end we have seen improvements in all areas of the business.”

Signalling confidence, the company paid dividends totalling £471,000 during the year, compared with £336,000 in the preceding period. The average monthly number of employees increased to 188, from 186.