The English division of north-east housebuilder Stewart Milne Group (SMG) is heading into administration.
Data and credit checking specialist Red Flag Alert highlighted the notice of intention to appoint an administrator in its regular checks of high court construction insolvency applications.
SMG has its headquarters in Westhill, Aberdeenshire. Its English subsidiary, Stewart Milne Homes North West England, is based in Manchester.
SMG’s English subsidiary had £1m-plus losses in its last full trading year
The last set of published accounts for the division showed losses of just over £1 million for the year to October 31 2022, on turnover of £45.8m.
SMG owner and chairman Stewart Milne put the entire group up for sale in April 2022.
Announcing retirement plans, the Aberdeenshire-born multimillionaire said he wanted to spend more time with family and friends, splitting his time in homes in Aberdeen, Perthshire, Turkey and Florida.
His luxury mansion in Bieldside, Aberdeen, also went on the market, with a £7.5m price tag. It is still up for sale.
A weak housing market and wider economic woes put the brakes on the sale process for SMG, as well as Mr Milne’s retirement plans, after the mini-Budget introduced during Liz Truss’s brief reign as prime minister.
Last July, SMG said market conditions had improved to the point where it was speaking to suitors again.
That news comes alongside SMG’s best annual profits performance for almost a decade.
A gain arising from the sale of a £100m turnover timber systems business in December 2021 and “significant efficiencies” drove profits to a level not seen for more than seven years, the company said.
Group accounts for the 12 months to October 31 2022 revealed pre-tax profits of £16.5m from continuing operations, following losses totalling £13.1m in the 2020-21 trading year.
Chief executive Stuart MacGregor and chief financial officer Fraser Park told The Press and Journal the company’s new homes in Scotland and north-west England were selling well.
SMG has offices in Westhill, Edinburgh, Glasgow and Manchester and a 1,000-strong workforce, including sub-contractors.
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