Digging a hole: JCB boss Graeme Macdonald warns that a vote for Scottish Independence could affect its future success

Digger maker JCB racked up bumper profits last year, but the firm’s boss warned continued success would be jeopardised by Scottish independence.



JCB posted underlying earnings of £313million, down on last year’s £365million but still the third highest profit in the history of the Staffordshire-based company.



The performance was boosted by ‘incredible’ growth in the UK construction sector, with Britain accounting for 17 per cent of JCB’s group sales.



Profit: JCB posted underlying earnings of £313million, down on last year's £365million

But boss Graeme Macdonald, himself a Scot, warned that a vote for independence would threaten businesses such as JCB.



‘I think it would be detrimental to business and to our business. There’s just no good argument for it,’ he said, adding the vote would be a ‘close call’.



His opinion adds to a chorus of warnings on independence from business figures such as Shell boss Ben van Beurden and his BP counterpart Bob Dudley.

Macdonald’s comments came as he blamed a slowdown in emerging markets for the fall in profit, on the back of turnover that edged down from £2.7billion last year to £2.68billion.



JCB sold 66,227 machines in 2013, compared to the 69,250 shifted in 2012.



Chairman Lord Bamford blamed currency movements and fragile demand in emerging markets, pointing to uncertainty caused by elections in Brazil and India.



He said market share was growing in every one of the firm’s key regions, adding JCB wants to expand in the agricultural sector as developing economies look to feed their growing populations.

