Muir Group plc, the parent company of Muir Homes, has reported a drop in activity in the last financial year.

Muir's turnover slumped to £62m, a £10m drop, and operating profit was nearly halved.

On the bright side, cash holdings continued to rise along with Muir's historic land bank maturing to sustain the business.

House plots with planning status dramatically increased during the year to sustain Muir Homes, which currently has eleven developments across Scotland with housebuilding revenue increasing from £11.8 million t0 £14 million in the year to January 2012.

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Advance sales for 2013 are up 20% on the previous year.

New orders are rising at Muir Construction, boosted by joint venture projects in the west of Scotland, Central Belt and Aberdeen.

Muir Timber Systems has seen a rise in turnover and orders, despite a challenging environment.

Property Investments, the investment arm of the Muir family continues to trade at a healthy profit despite a fall in rental income.

A company spokesperson said Muir Group was in a position to "weather the present storm and await better times".

Chairman John Muir, who founded the company in Fife in 1974, said: "Continuing to invest in new technology and finding the right people to lead us forward into new things is paying dividends with new 'villages' of housing; new house styles; new partnerships and techniques, new green innovations and new concepts. These innovations are in every division within the Group, to make us ready for the upturn."

(NE/GK)