UK's BSW Timber increased its pre-tax profits in 2015 by 80%, according to The Press and Journal. The doubtful market, together with the high log prices haven’t affected the Scottish sawmill business’ sales.
For the fiscal year ended March 2015, BSW gained £9.2million. Moreover, the acquisition of Southampton-based RF Giddings in the summer of 2014 brought increased production, raising also the sales. The £13.8million purchase raised the number of sawmills in the UK owned by the Scottish sawmill business, to 7.
Also, the purchase of Stirling-based Tilhill Forestry from UPM in September 2015 brought total gains of £120million.
Thus, the UK production increased from £30million to £190million and the total sales of the company went up 14%, to £210 million. According to accounts lodge with Companies House, the sales from BSW’s activities in the EU reached £12.2million.
Because of the global timber demand and the currency fluctuations, the current financial year is expected to raise a bigger challenge.
“The strength of the pound versus the euro and related currencies (particularly the Swedish crown) has made imported timber more competitive. Additionally, due to the reduced demand for Scandinavian and Baltic sawn timber in other markets, increased quantities are being exported to Britain,” said Chairman Martin Gale CBE.
He added that the priority if the company’s management is currently taking into consideration the unbalanced saw log prices and the reduction in sawn softwood timber prices, that produce a lot of pressure on BSW’s margins.
Thus, BSW is now developing new products and invests in research and efficient activity as to cope with these challenges.
About BSW Timber
BSW Timber is the largest sawmilling business in Great Britain. The company owns seven sawmills in the UK and one in Latvia, production capacity of over 1,000,000m3 of sawn timber per year.
BSW Timber supplies sawn timber products to customers in the Construction, Pallet and Packaging, Fencing, Garden and DIY product sectors.
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