Turnover decreased by 6% to £50.7m during the same period.

Chairman Gary Gerrard described the year as “particularly challenging” for regional housebuilders, especially in the north of Scotland, noting the added pressures from job losses and high taxation within the energy sector affecting the Aberdeen and North-East region.

Despite the challenging climate, the company’s operating profit increased to £3.4m, up from £2.7m in the previous year. However, the pre-tax figure was significantly impacted by a £3.9m exceptional impairment charge related to historic land purchases and higher borrowing costs. Joint managing director Graham Reid noted that while turnover reduced, gross margin was supported by a land sale and promotional activities.

To safeguard its long-term sustainability amid falling revenues and cost pressures, Scotia Homes implemented cost-saving measures, including making redundancies. The workforce was reduced from 196 to 181 staff, contributing to a reduction in operating expenses of over £500,000. Mr Gerrard acknowledged the difficulty of this decision but deemed it “absolutely necessary”, The Press & Journal reports.

Looking forward, Mr Gerrard expressed optimism for a recovery in the new-build housing market in 2025, encouraged by signs of easing cost inflation and potential reductions in short-term interest rates. Scotia Homes aims to capitalise on any rebound with a strong pipeline of sites, including developments in Aviemore, Arbroath, and Kintore.

The company is also benefiting from its 2022 acquisition of Caledonia Homes, utilising its in-house timber kit facility across most sites to achieve cost savings and enhance sustainability. Strong customer interest in the new Park View development in Kintore provides further hope for a broader recovery in buyer confidence.