Rise in timber group’s profit and market share

Fife-based timber specialist James Donaldson & Sons increased its pre-tax profit by more than 32% to £5.9 million.

Turnover for the year to March 31 slipped back 4.3% to £127.1m.

Neil Donaldson, non-executive chairman, said the business continued to develop alongside a positive UK housing market while still below 20072008 levels.

The group incorporates James Donaldson Timber, Donaldson Timber Engineering, MGM Timber (Scotland) and James Donaldson Insulation, and operates from 25 sites across the UK.

Donaldson reported high activity levels across the group, but subdued timber prices impacted on turnover.

Closure of the underperforming hardwood operation in Buckinghamshire resulted in a loss in sales. Profit margins increased across all businesses and, although new accounting standards brought £374,000 of charges, the group reported a second year of record profitability.

Group managing director Scott Cairns said each of the operating divisions improved on the previous year.

He continued: “Although average selling prices fell across our product range, very much linked to the strength of sterling as well as competitive pressure, our market share actually increased in all of our operations.

“Improved operational efficiency, aided by record levels of capital investment and strong cost control, assisted in delivering overall increased profitability.”

A nationally strong housing and regionally buoyant repair, maintenance and improvement market pre-Brexit was showing signs of slowing.

He added: “There are challenges ahead. However, we face them from a position of strength and a close understanding of our market and our clients’ expectations.”

Scott Cairns said each division improved on the previous year.