Building Momentum

15-01-2008

RECORD INTERIM RESULTS PUT TIMBER SPECIALIST ON COURSE FOR £100 MILLION

Strong timber prices and increased sales on timber trussed rafters have helped James Donaldson & Sons achieve record first half turnover of £52.3 million.

With all areas of the business reporting successful trading, the 35% increase over last year puts the family run timber specialist on target to realise a landmark turnover of £100 million this year

Led by Chairman and Chief Executive Neil Donaldson, the 5th generation of the family to head the business, the Fife-based firm posted a half year profit before tax of £1.7 million, up 40% from £1.2 million last year.

A particular success during the last six months has been the turnaround of loss making subsidiary Parker Kislingbury Ltd in Bucks. This business is now operating profitably following a restructuring of the management team and a new strategic focus that has taken £80,000 per month of cost out of the business.

Ireland has been the only area of the business to report reduced activity levels as a result of a recession in the country’s housing market.

While the second half of the year is expected to be challenging that has not stopped the company demonstrating confidence in its prospects by increasing the interim dividend by 16.7%.

The first half of 2008 will see Donaldsons invest further in its merchant presence with the opening of a further two branches for timber merchant MGM Timber (Scotland) Ltd.

Neil Donaldson said: “We have been continuing to win market share and this is because the quality and dedication of our staff means we are good at what we do.

“I have been particularly pleased at the resurgence of Parker Kislingbury which is now performing in a way that is consistent with a motivated workforce and good quality customer base.

“With all operating divisions trading successfully we have never been in stronger shape. There is no doubt we are going to be tested over the next six months through a combination of factors including an uncertain housing market and the volatility of global financial markets. Despite these challenges I am confident we will be able to make real progress this year.”


Founded in Fife in 1860, Donaldsons has grown across the UK through organic growth and strategic acquisition. The company’s core operating divisions now include leading timber importer and distributor James Donaldson Timber Ltd (JDT), the UK’s largest roof truss manufacturer Donaldson Timber Engineering and timber merchant MGM.