Scottish builder has moved towards two-stage procurement environments
Pre-tax profit at contract hire and construction firm Ogilvie dropped 28% to 拢16.4m, the Scottish firm鈥檚 latest annual results show.
The figure was significantly lower than the 拢22m recorded last year, despite a 17% increase in turnover in the year ended 30 June 2023.
Oglivie registered income of 拢377m in the financial year, compared with 拢322m in its 2022 results.
Its business is divided between contract hire of cars and light commercial vehicles, construction activity and homebuilding, with the former making up the lion鈥檚 share of income.
The construction division accounted from 拢68m of turnover, down from 拢75.2m. Ogilvie said that business had incurred losses in the year from 鈥渆xceptional inflationary pressures on materials and labour costs in the construction sector that had to be absorbed on long-term fixed term contracts with no route to recovery鈥�.
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It said these projects had now been completed and that the company had changed its approach to contract bidding from single stage competitive tendering and into environments where negotiation or two-stage tendering is the norm, such as procurement hubs and public frameworks.
Ogilvie Homes sold 205 units in the year and currently holds the rights to 798 units with planning and option sites for 1500 units.
Revenue from the sale of homes was up marginally from 拢49.7m to 拢50.2m.
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