The Courier & Advertiser (Fife Edition)
Fife pallet supplier hit by rising cost of materials
Large employer reports increased sales and profits
A major Fife pallet firm has warned of rising timber prices as the weakness of Sterling continues.
Scott Timber, based at Halbeath outside Dunfermline, supplies and reconditions pallets for every industrial sector with its customers including Harris Distillers, Highland Spring Group and Ineos.
The company saw turnover rise by almost £10 million to £87.4m for the year ending December 31 2017. Pre-tax profits increased from £4.6m to £5.4m.
“Timber supply challenges and continually rising prices have continued to be the trend in to 2018,” the company said in its strategic report.
“Global demand for timber fibre for a multitude of applications is putting pressure on availability and driving prices up.
“The position is exacerbated by the fact that the UK market is heavily reliant on imported timber to meet requirements and the enduring weakness of Sterling.”
The firm, which employs 618 staff, acquired Whirlowdale Trading Company Limited and Aberdeenshirebased sawmiller Pallet Logistics Limited last year.
The company said its outlook was
“very positive”.
“We continue to invest financial and management resource in maintaining and safeguarding timber supply while promoting bespoke and innovative pallet repair and reuse initiatives,” the firm said.
Parent company Scott Group Investments Limited saw sales rise from £128.3m to £148.7m last year.
Other arms to the company include supplying workwear and safety equipment, insurance and commercial property.