Sir David Murray's family firm swings into red
The family investment firm of Sir David Murray – behind two of the biggest development projects in the pipeline for Edinburgh – fell into the red last year as it took a £1.2 million provision over a possible tax bill.
Murray Capital, which is awaiting a Scottish Government decision on its Edinburgh Garden District and International Business Gateway proposals for the city, saw turnover increase by 7 per cent to £78.7m in 2018 but it swung to a loss before tax of £1.75m compared to a £360,000 profit the previous year.
The Edinburgh-based company, which also has interests ranging from steel stockholding to wine importing, said the loss was down to continued investment in its land business and the results of a number of subsidiary companies.
But the accounts show the company also took a £1.2m provision for tax over a share-based payment scheme operated by the group. Murray Capital has been challenging an HMRC query over the issue but it had previously considered it unlikely that it would need to pay additional tax.
Following further legal advice and discussion with HMRC, it now believes it is “now more likely than not that a future cash outflow would be required”.
David Murray, managing director and Sir David’s son, said he was satisfied with the company’s performance.
He commented: “This is a long-term investment business with the patient deployment of capital seeking long-term returns, and we made solid progress with several major projects”.