Building firm, Mactaggart & Mickel, returns to profit

The Glasgow company said it had built 109 homes during the year

The family house building firm, Mactaggart & Mickel, has returned to profit after making a loss last year.

The company made a pre-tax profit of £3.9m compared with a loss of £3.9m in 2009.

The Glasgow builder said it had cut costs and diversified but turnover was down slightly to £40.3m in the year to the end of April 2010.

The group built 109 homes during the year with an average selling price of £284,000 - an increase of 1%.

New developments were started in Edinburgh, Newton Mearns and Ayrshire.

Ed Monaghan, chief executive officer of the company, said: "Despite turnover being down, Mactaggart & Mickel Group is financially sound and we're seeing the positive impact of a period of cost reduction and dedicated programme of diversification."

The group revealed it had cut borrowing from RBS from £39m to 24m.

Homes accounted for 48% of gross profit with lettings amounting to 21%.

Last year the company cut nearly 100 jobs and most of the rest of its workforce were put on a four-day week.

The group returned to a five-day working week in January 2010 and now employs 177 people.