Cost rises put squeeze on timber firm profits

Significant increases in raw material prices are hitting profits at a Borders-based timber frame manufacturer despite a strong sales performance.

Oregon Timber Frame, which is headquartered in Selkirk, said that its order book had increased so far in 2017 on the back of another record sales year in 2016, up 7 per cent to £21.7 million. Pre-tax profits held steady at £1.9m despite the adverse impact of sterling’s depreciation but the firm said current year profits are being affected by significant material price increase.

Joint managing director Kenny Dunkley also said skills on sites were “increasingly scarce”.

Oregon has become the first company in the UK to recruit and train timber frame erector apprentices in conjunction with the industry training board and South Lanarkshire College.

It also yesterday announced the appointment of former Redrow chief executive Neil Fitzsimmons to its board.