A strengthening of ties between KDM International plc and the Baltic states and Russia helped the softwood timber importer to record earnings for the year ended December 31, 2003.
Turnover increased 8.9% to £16.3m and after tax profits were £418,767, the highest in the company’s history. Figures were boosted by the sale of the majority of KDM’s Kesgrave Hall office estate for £2.25m, taking the entire proceeds for the property to more than £2.5m.
KDM also disposed of its interests in the online trading operation TimberWeb in a private sale in July 2003.
Talking about the sale of Kesgrave Hall, KDM chairman Keith Richmond said: “We intended to sell only part of the estate and take advantage of the current high property values, but a buyer came on the scene that made an offer for the whole estate and paid our asking price.”
The company will remain at Kesgrave Hall until its new premises at Havens Innovations Europark, Ipswich are ready in August.
Mr Richmond said KDM sales have been pumped up by growth in Russian and Baltic supplies and the introduction to manufacturing customers of a range of log cabins from Sweden and Estonia.
He explained: “Because of the economy being in such good swing at the moment it is very difficult for UK manufacturers to recruit and retain skilled labour so we are offering them different lines including fencing, panel products and the cabins. Manufacturers can then add them to their range without the worry about labour resources.”
KDM has taken a 50% stake in a Latvian timber exporting business and now has two offices operating in Russia to facilitate supply lines.
