James Donaldson & Sons Ltd Announce Record Turnover and Record Profits

30 07 2007

James Donaldson & Sons Ltd, one of the UK’s oldest family run timber businesses, has announced record turnover and a 193% increase in profits after achieving increased market share across all its operating sectors.

Despite highly competitive market conditions, the timber specialist was able to boost turnover by 12.8% from £66.9m to £75.5m while also building its UK sites to 21 and staff numbers to 560 to support exceptional growth. Profit before tax grew to £3.12 million.

Details of the firm’s 11th successive year of growth comes as Donaldson’s revealed a major £1 million investment in new premises and the UK’s largest treatment plant for preventing wood decay.

The announcement of significant investment further underlines the business’ commitment to customer service which continues to be the bedrock for growth in each of its core operating areas. These include sawmilling company James Donaldson Timber Ltd (JDT), The UK’s largest roof truss manufacturer Donaldson Timber Engineering and timber merchant MGM.

Founded in Tayport in 1860, Donaldson’s has grown across the UK through organic growth and strategic acquisition.

Charting the incredible growth of the firm is Chairman and Chief Executive Neil Donaldson, who is the 5th generation of the family to head the business. He also plays an active role helping represent the interests of the wood and wood products industry as President of the Timber Trade Federation.

Neil Donaldson said: “We have been delighted with the performance of the business which is on a very firm footing. However, we have always been an ambitious company and our £1 million investment in new facilities and machinery demonstrates our commitment to driving forward growth.

“We see incredible potential for the Group in England, particularly through Donaldson Timber Engineering, and we are considering a number of acquisitions to help us realise our potential at the UK level. Ultimately, our aim is to position the business as the UK’s leading private supplier of timber and timber related products.”

The potential of the business for future growth lies in its strong performance in each of its sectors. Donaldson Timber Engineering manufactured over 530,000 roof trusses last year, helping it increase turnover by 3% to a record £30.7 million. The performance of JDT was equally strong with turnover up 25% to £23 million while MGM also showed an increase, up to almost £26 million from £22 million in the previous year.

James Donaldson & Sons is also leading the way on environmental sustainability within the industry.

Last year the business increased the amount of wood it handled from 190,000 to 230,000 cubic metres. The majority of wood is sourced from Nordic countries with Donaldson’s operating a strict accreditation programme to ensure wood is sourced from well-managed forests.