Inverness construction firm reports Brexit uncertainty led to increased costs
WGC (Scotland) Ltd – formerly known as William Gray Construction – also reported a drop in turnover and pre-tax profit last year.
Filing accounts for the year ended December 31, 2018 the firm described the year as a period of transition
Ownership went to Pauline Fox and Dougal Murray, while William Gray became company chairman before stepping down later in the year.
Ms Fox said: “The costs associated with rebranding the company have been borne in the year which included a new website, site signage and staff clothing which contributed to the drop in margin.
“The company’s trading was in line with the previous year and included the completion of both the new Land Rover/Jaguar showroom and the Raining’s Stairs development which subsequently won the RIAS award for architecture and was shortlisted for other awards.
“We also moved further afield from our usual area and began a contract in Wales for 25 holiday homes on the Llyn Peninsula.”
Turnover dropped slightly from £17,958,503 in 2017 to £17,906,047 last year.
For the same period, pre-tax profit fell from £157,860 to £110,718. Cost of sales increased during this time.
Ms Fox said: “The company cannot control construction material inflation and due to the uncertainty of Brexit there are price increases for raw materials on a weekly basis.
“This risk is managed by continuing to strengthen relationships with existing customers and negotiating contracts on a value-for-money basis.”
Staff costs dropped from £3,347,298 in 2017 to £2,624,117 last year, while the average number of employees fell from 102 to 73.
Ms Fox said it has had a good start to 2019, adding: “We continue to be robust with both tendered and negotiated work and have a strong team in place to deliver the quality we have been associated with.”
The firm’s parent company is WGC Holdings Limited.