Fife pallet making firm Scott Timber reported a £7 million drop in sales during 2020.
Headquartered at Halbeath Interchange Business Park in Dunfermline, the firm produces 16.5 million pallets each year.
Last year, Scott Timber diverted 22,000 tonnes of timber from landfill through is pallets recovery and reuse service.
But with many businesses forced to shut due to the Covid-19 lockdowns, turnover dropped.
The firm’s sales for the year to December 31 2020 fell to £110.1m, down from £117.8m the previous year.
Its pre-tax profits also fell, but only from £9.3m in 2019 to £8.9m for the reporting period.
Results ‘strong’ for pallet firm Scott Timber
Group operations director, Norman Scott said: “Despite the ongoing Covid-19 pandemic, 2020 was another year of strong performance across all parts of the company’s pallet businesses.
“Despite the challenges presented by the pandemic, the company has continued to operate throughout to support our customers working in key sectors.”
Mr Scott said Scott Timber was well-placed to take advantage of future opportunities due to its modern manufacturing facilities and processes.
He said the firm remained committed to offering a “first class service” to its customers.
Over the reporting period, staff numbers grew to 661.
The firm has 70 employees working in administrative roles, 584 engaged in production and seven in management.
Wages and associated costs rose by more than £4m, from £19.7m in 2019 to just over £21m.
Scott Group Investments profits up
The ultimate parent company of Scott Timber is Scott Group Investments.
Separately filed accounts for Scott Group Investments, show a fall in turnover to £154.6m, compared to £176.3m in 2019.
Pre-tax profits were up £600,000 from the previous year, to £11.1m.
That was attributed to a good performance from the group’s Scott Direct division.
Mr Scott said while Covid restrictions were currently impacting some parts of the business, the directors are confident the firm will not be affected adversely.
“Demand is strong across our customer base and whilst there are many challenges, we are confident that we can continue to deliver strong results,” the director said.
He added the cost of “vital” raw materials – such as steel and timber – remains an issue for the group.
“We are well aligned with our long-established supply chain and therefore well positioned to navigate these challenges,” Mr Scott said.
The group also completed the acquisition of Luton-based Direct Pallets in August 2020.
Mr Scott said: “This business has transitioned smoothly to operating as part of the reconditioned pallet business unit.
“It provides a strategically important additional location and an enhanced offering to the growing number of customers looking to benefit from our pallet recovery and re-use service.”