While the pressure from inflation and high interest rates has subsided since the end of the financial year, directors said the macroeconomic environment remains challenging as the residual effects have lingered. Demand for the group’s products and services is linked to the construction sector generally, and “in particular” the strength of the housing market.
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“The group is well-positioned to respond to these challenges and to take advantage of the opportunities presented,” directors said. “The cash reserves are targeted at investment opportunities and demonstrate the group has sufficient resources to meet ongoing requirements.”
The strategic report, which was signed off in October, further noted the impact of sluggish sector activity on the company’s timber division, which provides products to the wider building industry.
“Demand for new-build residential properties continues to be impacted by mortgage rates and availability, restricting demand,” the group said in its accounts filed with Companies House. “It is expected that the housing market will remain volatile in the short-term.
“Timber engineered product and timber importing divisions will continue to be impacted by demand for new-build residential housing and demand more generally in the construction sector.”
James Walker (Leith) employed more than 430 people during the year and remained in the process of buying out its defined benefit pension scheme, which was closed to new members in 1998 and closed to the future accrual of benefits in 2004. It continues to offer a defined benefit pension scheme.
Following the close of the financial year, the group acquired “significant” assets which led to the incorporation of three new housing development subsidiaries: Dundas Estates (Bishopton); Dundas Estates (Haddington); and Dundas Estates (Shawfair).