Clifford Jones Timber Ltd’s business operations have been sold out of administration in a pre-packaged sale, saving 48 jobs sat the Ruthin-based sawmiller.
CJT Timber Sourcing Ltd acquired the business operations and that of Clifford Jones subsidiary Hunter Wilson Ltd, which had also been in administration.
CJT Timber Sourcing, which lists former Clifford Jones Timber chairman Richard Jones as its director, acquired the business operations of Clifford Jones Timber on December 10. According to Companies House, Clifford Jones Timber went into administration on the same day.
TTJ understands that several suppliers owed monies by Clifford Jones Timber are unhappy about the turn of events.
In a statement from the administrators seen by TTJ, Clifford Jones Timber was said to have faced a number of difficulties including the loss of a major customer and an onerous contract which caused significant problems for the timber manufacturing business.
“Both businesses were adversely affected by the Covid pandemic with higher costs and lower demand. Hunter Wilson Limited experienced a catastrophic fire in 2022 causing major losses in production and sales. This was followed by a fire at their Clifford Jones Ruthin site, the insurance policy which they took out was found to be undervalued and due to COVID-19, the insurance companies had removed business interruption insurance, so the Company was unable to receive the full cost of the insurance claim. This resulted in both businesses amassing a large amount of debt.”
Twelve jobs have been saved at Gretna-based Hunter Wilson through the pre-packaged sale.
Clifford Jones Timber had a reputation as one of the UK’s largest manufacturers of machine rounded timber, producing over 10,000 machine rounded posts a day.
Directors reported in the firm’s most recent annual accounts for the financial year ended December 31, 2023, that 2023 was a huge step forward from the previous years’ poor performances.
Although sales were reduced, the gross margin increased by 6% as management increased sales prices and focused on profitable products and customers. Turnover rose 2% to £7.5m for the financial year.
“Overall, the profit before tax of £24,656 represented a very good result given the historical performance in a difficult business environment with many internal changes,” directors said.
The company had reported a pre-tax loss of £754,000 in 2022.
“The recent investments in the business have given us access to new markets and we are continuing to develop these markets for the future. The board also has a policy of investing in the staff which has continued in 2023.”
In the accounts, directors said additional costs were incurred setting up CJT Timber Sourcing Ltd and the transfer of the invoice discounting facility.
“Movement in working capital reflects trading stocks being now owned and managed by CJT Timber Sourcing Ltd. The movement of creditors to longer term debt reflect agreements with two key timber suppliers for extended payment terms.”
Trade debtor amounts for the group in 2023 totalled £1.9m, with creditor amounts totalled £3m.
Hunter Wilson was established in 1971 and was purchased by Clifford Jones Ltd in 2005.
Clifford Jones Timber was launched in 1948, providing timber products for the construction of industrial, commercial, agricultural and domestic landscapes.
