Sir David Murray: 'I have complete confidence in my sons'

The ownership of Murray Capital Group, which has interests in metals, property development, investment and wine, has passed into the hands of David D Murray and Keith A Murray following a planned transition.

The brothers acquired the share capital for an undisclosed sum in March, it was announced yesterday, leaving Sir David with a minority shareholding. The entrepreneur will continue as chairman of the group, which employs 262 people.

Sir David, 69, said: “Running a family business presents many challenges, but it allows you to always think about long-term benefits, rather than short-term issues. Being able to transition the ownership successfully to the next generation has been in our plan for many years. I am delighted that we have now achieved this successfully, with David focused on the Murray Capital Group and Keith on our wine businesses.

“I am pleased to remain as chairman, with an active interest in our core steel business in particular, and a small continuing equity stake. I have been through many ups and downs over the last 50 years in business – as anyone willing to bear risk inevitably does – but I retain great expectations and energy for the next phase. I have complete confidence in my sons, who are willing and able, and for the businesses they now own and lead.”

Edinburgh-based Murray Capital revealed the change as it reported a pre-tax loss of £11.6 million for an18-month accounting period ending June 30, 2020. Turnover was £100.1m, compared with £78.7m for the 12 months prior.

The company, which made a £1.8m loss in its previous accounts, cited exceptional costs relating to the restructure of its metals division, the impairment of investments amid the impact of Covid-19, and trading losses within portfolio companies.

The accounts state profitability was also hit by the continued funding of land assets within subsidiary Murray Estates, including its planned Edinburgh Garden District development to the west of the city.

But the group is forecast to make a “strong return to profitability”, boosted by a “number of positive developments in the portfolio and the future prospects of its large strategic land assets.”

David D Murray said: “The 18 months reported on with these accounts has been one of significant investment and strategic improvement for the Group. This demonstrates the benefit of the family business model, which allows us to think and act in a long-term manner to the benefit not only of our business but those we are invested in.”

Murray Capital’s metals division is now focused on its core steel business following the sale of subsidiary Multi Metals, an aluminium specialist, to its management team.

The company said the restructuring, allied to an increase in steel prices, should allow the division to move back into the black for the financial year ended June 30, 2021. The period covered by last year’s accounts was extended to allow the company to restructure certain subsidiaries.

Murray Capital has been the main business focus of Sir David since he began the formal process of winding up the once-vast Murray International Holdings (MIH) conglomerate in 2015, which followed a six-year process of restructuring and disposing assets to pay down bank debt.

David D Murray added: “The company has a portfolio of businesses that trade across a number of sectors and territories, which act as a good source of diversification, especially in times of difficulty.

“While the pandemic has been challenging in many ways for our business, as with many others, the group’s performance has picked up considerably in the period since June 2020, such that we expect to record a more positive set of results for 2021.”