In its 2007 Annual Report and Strategic Review the Group revealed total operating profits have risen in 2007 to £15.85m from £6.235m, a figure which included exceptional costs on the sale of the Group's construction business to Rok plc, in 2006 (total operating profits in 2005 were £12.5m).
This rise was realised through increased sales − Group turnover on continuing operations for last year up to £94.2m from £85m in 2006 − and the sale of a site in Melrose, in the Scottish Borders, to Persimmon plc.
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In the year ended December 31, 2007, pre-tax profits for the Inverness-headquartered Group - in which Bank of Scotland Corporate's Joint Ventures business recently acquired a 40% stake - reduced to £10.753m from £32.513m 2006. However, the figure for pre-tax profits in 2006 included a £27m net gain from the disposal of the Group's construction business to Rok plc.
Chairman and chief executive David Sutherland said: "The Group has delivered a first-class set of results for 2007, increasing the underlying profitability of the business. This has been achieved against a backdrop of a challenging housing market in the UK but one in which we have nonetheless continued to sell well.
"Given the turmoil in the housing market primarily south of the Border the Group's focus going forward will be on preserving our land bank − which at current volumes stands at five years − and driving sales across all our sites in Scotland."
(GK/JM)
