The Courier & Advertiser (Fife Edition)
Fife pallet producer stacks up £5m profit
PRODUCTION: Group is UK’s largest importer of pallet material from Europe
Fife-based pallet producer Scott Group Investments stacked up a 37% rise in pre-tax profit to almost £5 million after a major takeover deal.
The Dunfermline based firm’s turnover remained at around £117m in 2015 but its profit before tax soared by £1.3m to £4.985m.
The leading industrial supplies organisation provides a wide range of goods and services to industrial and manufacturing markets throughout the UK and in Europe.
It produces pallets, packaging, agricultural boxes, tools, workwear and safety equipment, commercial insurance and property services.
Employing about 1,000 staff across the UK, it has operations in Latvia, where its Palesu Kompanija subsidiary secures timber for its products throughout Europe.
As a result the Scott Group is now the UK’s largest importer of pallet material.
Director Norman Scott said the group’s re-banking with HSBC in March last year helped with its strategy of growth through acquisition.
In August last year the Halbeath Business Park organisation completed the purchase of Norfolk pallet maker HLC (Wood Products) for an initial consideration of £8.28m.
The deal brought additional turnover and an opportunity to consolidate pallet operations in south-east England, where the majority of HLC activity is centred.
The move was welcomed by Scott Group customers who stand to benefit from operational efficiencies, enhanced product and service offerings and through the growth and development of pallet reuse and recovery initiatives.
Scott Group sold its packaging businesses in Glasgow, Wolverhampton and Manchester to focus on core activities.
Mr Scott said the future outlook is positive, with all group businesses continuing to enjoy trading at an increased but steady level.
“The integration of the HLC business is a significant focus, but further acquisition opportunities continue to be assessed which, together with a number of initiatives being worked on across all divisions, will ensure ongoing growth and improving performance,” he said.
During August 2016 the £1.275m acquisition of Northern Case Ltd of Cheshire was completed adding automated pallet production capacity and the opportunity to consolidate existing operations in the important north west of England.
The Scott Direct division is working on a number of important projects including a major warehouse development and reorganisation.
Its collaboration with B&Q for the Green Pallet Scheme to reduce wastage by using responsibly sourced timber won a major award and is set to be extended throughout Europe.