Significant gains in its housing business during 2008 has resulted in a robust performance for one of the UK's larger privately owned construction companies, despite the tough economic trading conditions.

Morris & Spottiswood has reported revenues of £122.5m in 2008, down slightly from £125.3m the previous year, and pre tax profits of £3m as compared to £3.4m in 2007. The company, which employs around 480 people at its offices in Glasgow, Edinburgh and Warrington, continues to operate with nil borrowings.

Refurbishment contracts with Glasgow Housing Association, River Clyde Homes, Prospect Housing and City of Edinburgh Council, increased Morris & Spottiswood's affordable homes portfolio, which is already one of the biggest in Scotland.

Increased demand for new build projects (32 units for Link Group in Falkirk) also re-affirmed the company's building credentials in the housing sector during 2008.

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Chris Saxton, Morris & Spottiswood’s chief executive said early adoptive measures to reduce exposure to sectors most adversely affected by the recession at the end of last year helped maintain a solid performance in difficult trading conditions.

"Retail, commercial, and banking have historically been major strongholds for Morris & Spottiswood and they have been hardest hit by the economic uncertainty which continues to prevail.

"However, we do have a strong balance sheet, and as a business, we are quick to take advantage of changing market conditions. Our housing division performed exceptionally well last year and our maintenance and fit out divisions were successful in securing several million pounds worth of new business in healthcare, education, judiciary and planned maintenance contracts, in addition to food retail, commercial and financial services contracts."

Commenting on his expectations for the year ahead, Chris Saxton said: "We do see the market contracting but I think there will be a flight to quality and financial stability, which will be good for our business.

"What's important is standing out from the crowd. The key to surviving the current situation is to have a low cost base and to be able to sell to your strengths."

Mr Saxton said in overall terms the firm have a dedicated and loyal workforce and an increasingly broad sector spread across the three businesses leaving them well positioned to meet the challenges and different market opportunities from the recovery when it happens.

(GK/JM)