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February 1, 2016

Scottish BSW Timber increases profits despite shaky markets

BSW Timber, the Scottish sawmill business based at Earlston in the Borders, defeated the effect of the log prices increase as to get its profits higher in this last financial year, according to The Press and Journal.

The company made an important progress over three rivals and increased its pre-tax profits by 80%. Thus, BSW gained £9.2million for the year ended March 2015.

The company owns 7 sawmills in the UK and the Southampton-based RF Giddings is the last one they bought, last summer, with a £13.8million investment.

Their sales in 2015 rose by approximately 14%, to £210million, mostly from the activities in the UK, which rose £30million to £190million, as accounts lodge with Companies House show. The EU actions brought them £12.2million.

The board of directors paid a dividend of 4% per share for 2015, and their salaries increased from £236,000 to £339,000. Still, 2016 might not be so certain regarding a rise in gains, because of the fluctuations in currency and global timber demand.

“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. The sawlog price remains unbalanced against the significant reduction in sawn softwood timber prices and consequently has put pressure on BSW margins. Management have this as a priority and are acting accordingly,” said Chairman Martin Gale CBE.

Thus, BSW will invest in processing efficiency, new products, and research and development, as the PAJ stated. In September 2015 they announced the purchase of Stirling-based Tilhill Forestry from UPM, with revenues up to £120million.

 

 

 

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