A group of nearly 300 companies is leading the way in the timber and wood products sector, according to Plimsoll Publishing.

Its latest report says 271 of the top 1,000 timber companies averaged a 29.3% growth in 2005, compared to an industry average of 5.7%. The minimum growth recorded by the leading firms was 11%.

A further 235 businesses are suffering because of the success of the leading companies, with their average sales falling by 11.1%.

Senior Plimsoll analyst David Pattison said the growth was not simply a case of larger companies forcing small operators out of business. Firms with sales of less than £3m averaged a growth of 4% during last year.

But smaller businesses which did not register growth experienced a severe sales decline averaging 15.1%.