A Fife firm that makes millions of pallets a year has seen its sales soar as business returns to normal following the Covid-19 pandemic.
Scott Timber, headquartered at Halbeath Interchange Business Park in Dunfermline, reported a dip in sales of about £7 million in 2020 as the pandemic took hold.
However, newly published accounts for the Fife firm show a boom in sales for the year to December 2021.
Its turnover surged to nearly £180m, up nearly £80m from the year previously.
Pre-tax profits also more than doubled, rising from £8.9m in 2020 to £17.2m for the reporting period.
Fife pallet firm ‘well positioned’
In his strategic report published alongside the accounts, group operations director Norman Scott said the figures represented a return to normal trading post-Covid.
He said: “Turnover and profits also benefited from a full year’s contribution from sites acquired as part of the acquisition of Direct Pallets Limited, which took place in Q3 of 2020.
“The group continues to maintain a strong balance sheet and remains well positioned to finance future trading, growth and acquisitions.”
Scott Timber produces around 16.5 million new pallets every year.
Mr Scott said the firm has felt the impact of the war in Ukraine and rising energy costs which have impacted global supply chains.
His report added: “That said, we believe the business to be well positioned to continue to meet these challenges.”
Over the reporting period, staff numbers grew to 937 from 661.
The firm has 141 employees working in administration and management roles and 796 engaged in production.
An increased headcount saw the wage bill rise sharply, from just over £21m in 2020 to £29.4m.
Strong results for Scott Group Investments
Meanwhile, there were similarly strong financial results recorded by the firm’s parent company, Scott Group Investments.
Separately filed accounts for Scott Group Investments show its turnover rose by over £50m to December 2021.
Pre-tax profits also more than doubled over the period to £22.2m.
Mr Scott said the group remains confident about the future.
“Whilst there is a great deal of uncertainty around the wider economy the group remains optimistic and confident we can continue to deliver strong results,” he said.
Mr Scott also outlined a number of “restructuring” moves made by the firm.
Scott Group acquired HLC (Wood Products) Ltd in a multi-million-pound deal in 2015.
Mr Scott said its trade and assets have now been transferred to Scott Timber.
He added that in May 2021, the group disposed of its engineering consumables business, Scott Direct.
Mr Scott added: “A number of significant capital investment projects, initiated pre-Covid, were finalised and delivered.”
He said those included a new automated sorting line and a new pallet manufacturing line.
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