West Yorkshire-based Craven Timber, which recorded more than £2m sales in 2006, said recent shortages and resulting price increases had presented a “stimulating challenge” to the business.

“We can’t afford to be deterred by rising costs,” said Craven director Ian Farmer.

“It was inevitable prices would rise after so many years of inertia, we needn’t be shy about continuing to invest in stock and trading profitably.

“Customers have had to deal with inflation on other building materials year after year and now seem to be taking new timber costs on board without too much difficulty.”

Mr Farmer said people in the timber trade were a bit frightened following the price increases witnessed last year but said there was no point in merchants not passing the price growth on to their customers.

Craven Timber, which sells home-grown timber, has tripled its sales since 2003. Its takeover of another local timber merchant and subsequent move to the company’s premises has freed up more space and led to increased bulk sales to small builders merchants and other timber merchants.