Entrepreneur Stewart Milne has announced plans to retire and has listed his house building empire for sale.
Chairman Stewart Milne, 71, has decided along with the board it was the right time to sell the business to capitalise on the current strong performance of homes’ sales and favourable market conditions.
Milne founded the Stewart Milne Construction nearly 50 years ago with 30 employees and a turnover of £1m in its first year.
It was founded in 1975, and is wholly owned by Milne, who holds 80% in the company, with his three older sons, Gary, Mike and David.
Stewart Milne Group recently sold its timber frame business to focus on house building in its core markets in Scotland and North-West England.
It has taken steps to improve efficiency and profitability to reposition the business for future growth.
Stewart Milne Group now has offices in Aberdeen, Edinburgh, Glasgow and Manchester with a workforce of 1,000, including sub-contractors.
Around 20 developments are currently at various stages across Scotland and North-West England including Dargavel Village, Shawfair, Haddington, East Linton, Hooton and Congleton.
Last August the group reported an £800,000 operating profit, praising the sales of houses since the restrictions were eased.
The Aberdeen-based business spent £43m on impairments from land and the restructuring, which has paved the way for future growth and profitability.
For the year ending 31 October 2020, the group recorded turnover of £269.7m, compared with October 2019, which saw a £7.2m operating profit and a turnover of £379m.
Stewart Milne said: “The unprecedented events of the last two years have forced many to re-evaluate and, after considerable soul-searching, I have decided that the time is right to step back from the business I founded to prioritise my time for family, friends and other ventures I want to pursue.
“In the last 18 months, we’ve significantly strengthened the business with major efficiencies and our new homes range. This ambitious overhaul of our designs offers a new range of spacious, high quality family homes that meet the changing needs of buyers. We are superbly placed to capitalise on the favourable market conditions and demand which are set to continue in the near-term.”
Stewart Milne Group said that in order to realise its growth ambitions, significant investment was required, particularly in its strategic land bank to create future, high-margin development opportunities.
The group board considered all options with its advisers and came to the conclusion to investigate a potential sale.
Ernst & Young has been appointed as financial adviser to the group in this process.
Stewart Milne Group chief executive, Stuart MacGregor, added: “We have one of the strongest sales pipelines in our history and anticipate generating significant sales over the next two years.
“With a strategic bank of land, award-winning developments, our new homes range and recently completed investments in new IT systems and in digital transformation, Stewart Milne Group presents a compelling proposition.
“However, with land prices rising, more investment is needed to take advantage of our unrivalled land-buying experience and the development opportunities available.”
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