MURRAY Capital Holdings, the metals, property, investment, and wine business chaired by former Rangers owner Sir David Murray, has reported a fall in profits.

The family-owned firm, now majority owned and led by Sir David's sons David and Keith, has seen profits tumble to £4.1 million from £12.8m in the year to the end of June, as steel prices normalised following a record 2022.

Murray noted that steel prices had soared in 2022 as the economy bounced back after Covid and war in Ukraine disrupted steel supply chains, before easing this year.

The Edinburgh-based firm cited the impact of falling steel prices and the lack of any significant land sales by its property division, Murray Estates, as turnover from continuing operations dipped to £84.3m from £87.5m.

Notable developments during its most recent financial year included the acquisition of a property on Rutland Street, Edinburgh, which will become the new head office for Murray Capital, following 25 years based on nearby Charlotte Square. The acquisition was the firm's single biggest investment of the year.

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In April, it offloaded its long-held stake in Argyle Consulting, an independent Scottish financial advisory firm, to its management team. That was followed in June with the sale of its share of Murray Energy PTE, a Singapore-based supplier of steel products to the Asian market, to its management.

Managing director David D Murray, who runs Murray Capital with brother Keith, said: “Last year was a solid performance, rather than a spectacular one, but in the macro environment we’ve been operating in, I think it’s reasonable to consider that a success.

“I’m pleased to see the respective management teams of our Asian steels business and Argyle Consulting taking those businesses forward and I will continue to track their progress with interest.

“We held a stake in Argyle for 20 years and exited at a decent return on our original investment. Selling our stake in the Singapore firm allows us to focus more of our efforts on our UK steels businesses, which are still performing well.”

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Murray Capital became the main focus of Sir David Murray following the demise of Murray International Holdings, which was ultimately wound up in 2018. His sons David and Keith, who runs the group’s wine business which includes a vineyard in France, wholesaler Wine Importers Scotland, and wine shop Cockburns of Leith, took over the business in March 2021. Sir David retains a minority shareholding and is the chairman of the company.

During its most recent financial year, shareholder funds increased by 5% year-on-year to £46.2m from £43.9m because of profits generated by the group, though net cash decreased to £6.1m from £7.2m.

David D Murray added: “The current financial year has started positively, albeit trading is behind the last couple of years. We will continue to take a long-term and patient view of our various investments, which we believe will be necessary as the effects of the cost of money increases and higher inflation start to take real effect.

“Progress in the Murray Estates portfolio has not been as quick as we would have liked, but we are not immune to the slowing down of the housing market, due to increasing interest and mortgage rates as well as inflated construction costs.

“I was encouraged to hear the Scottish Government’s housing minister, Paul McLennan, recently identify the west of Edinburgh as a key strategic location for new housing that will help address the critical shortage in provision we face as a city and a country.

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“Edinburgh Council’s ‘Towards West Edinburgh 2050’ strategy would appear to be a very positive development in that context too, as we have more than 500 acres of land in western Edinburgh that should be material in the city’s expansion in the coming years.

“That includes 23 acres at the International Business Gateway site beside the airport, our plans for which – including 200 apartments – were approved by the council but called in for review by the Scottish Government in 2019. Nearly five years on, we are still awaiting a final decision.

“More positively, we are now in exclusive negotiations with a housing developer for our Edinburgh Garden District development, having secured final outline planning approval in 2022 for 1,350 homes – including family and affordable accommodation – a primary school, commercial retail centre and supporting infrastructure. Hopefully we’ll have more to say on that site in the early part of next year.”

The accounts show that Murray Capital employed an average of 168 people during the year, down from 225, with payroll costs falling to £8.4m from £10.5m.

Directors' remuneration climbed to £1.4m from £1.18m.

A dividend of £1.16m was paid during the year, compared with £750,000 the year before.