JUST a year after recording one of its biggest ever losses, Selkirk-based building material supplier Oregon Timber Frame has recorded a pre-tax profit of more than £500,000, writes Fiona Scott.
Oregon Timber Frame said more stable timber prices and cost-cutting measures helped improve margins.
Last year the Dunsdale Road outfit, which also has a base in Burton upon Trent in Staffordshire, reported a loss of £316,000 and blamed the losses on an “unprecedented increase in timber prices, which resulted in a severe erosion of margin”.
This year, however, turnover has remained steady at £12.5m, and group profit before tax was £541,000.
Chairman Roderick Lawson told The Wee Paper that one of the key factors in the recent upturn was the introduction of “efficiency measures”, including the development of an integrated factory and business planning system which has resulted in an efficient production and supply process. New products and services have also contributed, specifically Oregon’s highly insulated IP Intelligent Panel System which earned it a UK Green Gown Award in April.
Mr Lawson told us: “The housing market remains challenging and the company believes that a supplier that can deliver value and stability, and can respond to new technical standards, will be a critical factor for house builders over the years ahead.” .
Oregon Timber was formed in 1998 with just 12 employees and moved its operation and 90 staff from Jedburgh to Selkirk in 2005. It has about 80 employees with the prospect of boosting staff on the technical side.
Mr Lawson added: ““These are still tough times for the housing construction industry and we will just be trying to maintain a steady pace over the next few years.”
“As directors, we are committed to providing our customers with a technically sound service of a high standard and we are pleased that the new activities are contributing so positively to this.”