By Scott Wright

MURRAY Capital Group, the Edinburgh-based metals, wine, property development and investment company, has reported its “best set of results for a number of years”, new accounts show, as managing director David D Murray backed the business to “weather the storm” as the economic outlook darkens.

The family business, now majority owned and run by Mr Murray and brother Keith, sons of former Rangers owner Sir David Murray, has reported a pre-tax profit of £12.8 million for the year to June 30, a 31 per cent rise on the year before.

The company said the results were driven by improved trading at its metals division, comprising Murray Steels and Hillfoot Steel, which both had record years of profitability, as well as the sale of 12 acres of consented land at Ratho Station, near Edinburgh, to Taylor Wimpey.

Overall turnover from continuing operations leapt by 11% to £92.8m.

The increase in profits helped shareholders’ funds grow year-on-year to £43.9m from £35.5m.

Sir David passed control of the company to his sons in March of last year under a planned transition of ownership. The veteran Scottish businessman continues to chair Murray Capital and holds a minority interest in the company.

The period covered by the accounts saw Murray Capital invest in Wavegarden, a £55m project to build Scotland’s first inland surfing destination on the outskirts of Edinburgh. In April it sold its longstanding investment in Capito, an IT services business, to XMA, one of the UK’s largest IT resellers.

Speaking to The Herald, David D Murray said the accounts show it had been a “good year” for Murray Capital, with the company reaping the benefits of a restructuring of its metal division two years ago. The division engages in steel stock-holding and processes and profiles products for end users in sectors such as manufacturing, engineering, construction, renewables and oil and gas.

“It is nice to see the steels business performing better again – that has probably been a highlight of the year,” he said.

Mr Murray added that steel prices were good during 2021 and the early part of 2022 but have softened in recent months, noting that demand from various sectors has eased since the immediate “post-Covid” period.

He said: “In the first quarter of this financial year trading has been good. Not as good as last year, but still positive.”

Asked if forecasts of further rises in interest rates would affect the company’s plans for this year, Mr Murray said it is “business usual so far”. He went on: “We have seen a softening. There is no doubt about that. We haven’t seen a collapse yet, in terms of demand. But there is definitely, on the property side, a nervousness about mortgage rates.

“We are getting feedback from one or two of the housebuilders that they are seeing sales rates and enquiries tailing off because of people’s mortgages getting more expensive. That will have some degree of impact on the housing market.”

Since year-end, Murray Capital has secured final outline planning permission for its Edinburgh Garden District Development to the west of the city. Work on the site, which will include 1,350 homes, a primary school, commercial and retail infrastructure, should begin next year.

It is also hoping progress will be made next year on its plans for a 23-acre site at the Edinburgh International Business Gateway, next to Edinburgh Airport, which were called in by ministers for a transport impact assessment after initially winning approval in 2019.

Mr Murray took aim at City of Edinburgh Council’s City Plan 2030 that emerged this week, which he said would rule out green belt being released for development over the next decade. Much of Murray’s land assets are in such land located around the city. Mr Murray said the plan, which is out for consultation, would involve businesses in the city being moved out of brownfield sites to allow new housing to be built.

“Obviously we are bound to say this, but ourselves and other developers and builders think this is not going to work,” he said.

Murray Capital’s wine business includes the Chateau Routas vineyard in France and the Wine Importers wholesale company, which supplies hotels, pubs and restaurants in Scotland. A wine store was recently opened under the banner of Wine Importers’ Cockburns of Leith private client brand in Edinburgh’s New Town, which Mr Murray said was being well received.

He added that the wine operation, which is run by Keith Murray, was trading profitably.

Mulling the broader economic outlook, Mr Murray said: “I think we are in a decent position whatever happens… we should hopefully be able to weather whatever storm comes ahead of us.”