Murray Capital hails ‘milestone’ land sale that will lead to 1,300 new Edinburgh homes
“Family businesses like ours play a vital role in driving sustainable growth, creating jobs and investing for the long term” – David D Murray
Murray Capital Group, the private investment office of the Murray family, has tumbled into the red but hailed a strong start to the current year thanks to a key property sale that will lead to the building of some 1,300 homes in Edinburgh.
Releasing financial results for the year ending June 30, 2024, the firm said it had been subject to “challenging market conditions”, particularly in the steel sector, which led to a fall in turnover to £68.3 million, from £84.3m a year earlier. That led to a pre-tax loss of £1.7m, down from a profit of £4.3m previously.
Shareholders’ funds decreased to £33m in the year, from £46m, primarily due to a debt-for-equity swap within Murray Estates, the group’s property development business. The firm’s net cash decreased to £4.2m from £6.1m at the close of the previous financial year.
However, since the close of the reported financial period, the company is said to have made “material progress in diversifying its assets and unlocking future opportunities”.
The current calendar year opened with the sale of the Redheughs site at Edinburgh Garden District to social enterprise Places for People. This will see 1,300 homes of various types and tenures built on some 110-acres of land, including more than 330 new affordable homes. Plans also include a primary school and local amenities.
Murray said the sale marked a “major milestone” for the estate business’ land and property strategy, paving the way for “significant receipts” in the coming years. The company intends for all future proceeds from Murray Estates to directly flow through to Murray Capital, so it can fully expect to benefit and reinvest from the sale of Redheughs and any future such deals.
Other key transactions include the sale of the group’s interest in Blackford Insurance and Murray Estates’ Neighbourhood Centre at Kingdom Park in Kirkcaldy. The company also invested in and moved to its new head office at Rutland Street in March last year.
The family also announced last month that Sir David Murray, Murray Capital’s chairman, will launch his autobiography, entitled ‘Mettle’, in early July. The book will look back on his life in his own words.
His son David D Murray, managing director of Murray Capital Holdings, said: “We are pleased with the momentum that we have built in our estates portfolio, particularly with the sale of Redheughs in January, which we expect to support a notable financial uplift for the current financial year. This is despite wider market challenges, including the government’s proposed changes to business property relief.
“Family businesses like ours play a vital role in driving sustainable growth, creating jobs and investing for the long term. The proposed changes risk undermining this, but we remain optimistic that policymakers will recognise the importance of supporting businesses that contribute so much to the UK economy.
“We will continue to champion investment, innovation, and the next generation of entrepreneurs,” he added.
Murray Capital continues to provide support to The Murray Foundation, with a percentage of profits directed to the family’s foundation each year.
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