Fife timber specialist nails higher profits

Group’s strongest result in 157 years of trading

Sales and profits have surged at Fife-based timber merchants James Donaldson & Sons despite a Brexit-led increase in its costs.

The 157-year-old group – whose subsidiary businesses operate from 28 sites across the UK – said turnover had reached £137 million in the year to March 31, up by £10m on the prior year.

Pre-tax profits were also higher than in 2016, rising by 31% to £7.8m.

The group accounts will be lodged at Companies House in the coming days.

Managing director Scott Cairns said the growth was down to the efforts of the workforce, record investment and the contribution of Nu-Style Products, an Aberdeen firm it acquired in the year.

He added the improved returns had been achieved despite challenges to the business.

“Early negative market reactions to the Brexit vote of June 2016 quickly passed and all sectors and all of our businesses performed well in the year, cumulating in our strongest year of our 157-year history,” Mr Cairns said.

“One stark result from the June 2016 vote was the immediate weakness in sterling which continues today.

“Raw material prices have increased sharply as a result and we and our clients alike are having to deal with these new cost realities.”

Despite the market issues, Mr Cairns said the firm was looking ahead with confidence.

“This year has started positively, however, there is no doubt that the General Election result and political machinations generally relating to Brexit, partisan politics or the omnipresent Scottish independence question have and continue to dent consumer and business confidence and we can see early economic warning signs in our market as a result,” Mr Cairns said.

“The group today face those challenges from a position of strength and, macro factors aside, we remain committed to our clients and to being their supplier of choice.”

Raw material prices have increased sharply... we and our clients are having to deal with thesenew cost realities