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Scottish house builder up for sale as founder makes plans to retire
The board at Stewart Milne Group has decided to put the business up for sale following the news that its founder and principal shareholder is set to retire.
Board members at the Aberdeen-based house builder said they had considered all options with their advisors and came to the unanimous conclusion to investigate a potential sale to “capitalise on the current strong performance of homes’ sales and favourable market conditions”.
The organisation currently has around 20 developments at various stages of completion and a workforce of 1,000, including subcontractors.
In a release, the builder said it had recently taken steps to improve efficiency and profitability to reposition the business for future growth, and that its latest accounts will “show a dramatic increase in turnover and profits driven by high demand for its family homes”.
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The organisation was founded by Stewart Milne nearly 50 years ago, but the 71-year-old has announced that he is making plans for his retirement.
Mr Milne said: “The unprecedented events of the past 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 past 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.”
The house builder said that in order to realise its growth ambitions, significant investment is required, particularly in its strategic land bank to create future high-margin development opportunities.
Stuart MacGregor, chief executive of Stewart Milne Group, said he was expecting a lot of interest from potential buyers.
He 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.
“Our design and build standards of excellence in creating distinctive and highly desirable communities are a key differentiator, positioning us as a leader in placemaking.
“However, with land prices rising, more investment is needed to take advantage of our unrivalled land-buying experience and the development opportunities available.”
Ernst & Young has been appointed as financial advisor to the group during this process.
