James Donaldson & Sons Ltd is on course to hit £100m annual sales after achieving record interim results.
Strong timber prices and increased sales of timber trussed rafters helped the company to a first half turnover of £52.3m, a 35% rise on a year ago. Pre-tax profits were up 40% to £1.7m.
The company said a particular success during the last six months was the turnaround of loss-making subsidiary Parker Kislingbury Ltd, which is now “operating profitably” following a restructuring of the management team and a new strategic focus which has taken £80,000 per month of cost out of the business.
The first half of 2008 will see Donaldsons invest further in its retail presence with the opening of a further two branches for MGM Timber (Scotland) Ltd.
Chairman Neil Donaldson said the business had never been in stronger shape but he expected the next six months to be testing due the uncertain housing market and global financial markets volatility. “Despite these challenges I am confident we will be able to make real progress this year.”
