A Fife timber specialist has defied the gloomy economic backdrop to post turnover of almost £100 million.
The highly encouraging end-of-year results from James Donaldson & Sons represent an increase of some 20%.
Turnover for the year to March 2011 reached £97.3 million, with the company achieving a profit before tax of £2.018 million up 228% from last year’s figures.
What has been described as “excellent” cash flow management has also reduced net debt to £1.25 million, which equates to a record low gearing ratio for the group of just 18%.
Neil Donaldson is executive chairman of the Donaldson Group.
“It is very pleasing to report that our turnover almost made the £100 million mark,” he told The Courier. “We are delighted to have performed so well when trading conditions remain incredibly challenging.
“2010/11 was a huge year for us, as we celebrated many milestones within the company notably our 150th anniversary and the appointment of Scott Cairns as managing director.”
Commenting on trading operations for the year, Mr Cairns said: “2010/11 was truly a year of two halves in terms of market activity.
“April to September saw trade reach its strongest level for several years. However, October to February was among the hardest trading months I can recall.”
Nevertheless, Mr Cairns said the year had ended in a largely positive manner.
“March 2011 saw a positive seasonal swing, and it was welcoming to see all of the subsidiary businesses finishing off the year on a high note.”
All four subsidiary companies within the Donaldson Group also have much to celebrate, having improved on last year’s performance.
Hardwood specialist Parker Kislingbury Ltd delivered a strong performance with a modest rise in sales.
Meanwhile, engineered wood products manufacturer Donaldson Timber Engineering Ltd saw a return to profitability following two years of losses.
Both timber merchant MGM Timber (Scotland) Ltd and importer and processor James Donaldson Timber Ltd returned record sales and strong profitability.