Stewart Milne sees fall in profits

Timber frame group Stewart Milne Group has announced a 40% fall in pre-tax profits for the year, but describe the results as "solid".

The group have reported pre-tax profit for the year to June was £25m, compared to the 2007 figure of £42m. Turnover for 2007/8 was reported at £420m, compared to £348m in 2006/7, an increase of 21%.

Glenn Allison, group managing director, said: "In the difficult trading conditions we faced during the year a 20% reduction in our operating profit is a relatively good performance overall. Our pre-tax profit of £25m - a reduction of 40% from last year - was impacted by an increase in interest charges arising from the acquisition we made and reported in the summer of last year."

In common with the rest of the housing industry, the group has had to contend with trading conditions, which deteriorated through the year and were particularly severe in their impact in the period from January to June 2008.

The Group has confirmed that it has made 278 of its employees redundant. This was slightly less than the potential redundancies announced in July, with the majority of those taking advantage of enhanced voluntary packages.

The Stewart Milne Group consists of four main operating areas: Housebuilding, Timber Systems, Commercial Developments & Construction.