Construction timber specialist Arbor Forest Products improved profit despite turnover flattening, as deflation in commodity prices offset sales gains.
The New Holland business imports, processes and sells to retail markets across the 海角视频, and is closing in on becoming a £100 million business.
It had seen double digit growth of 16 per cent in 2018 to £96.6 million, but it levelled off, with a 1 per cent decrease to £95.9 million in the year to March 31, 2020, results just published show.
The company has just completed the first phase of a £12 million investment in 2021, and is confident it is gearing up for further “medium to long-term” growth once Covid and Brexit are navigated.
Arbor, part of Howarth Timber Group, employs 172 people, the majority in production at the sprawling South Humber Bank terminal and saw mill facility.
Director Andrew Howarth said: “It was another positive year with growth in volume and further diversification of both the customer and product base within the business.
“Turnover was relatively flat year-on-year, reducing by 1 per cent to £95.9 million reflecting both deflation within timber commodity prices which was seen throughout the year, offset by volume growth. Operating profit was £6.4 million showing good growth from £5.5 million in 2019, reflecting the additional volume and further diversification into value-added products, as well as continued monitoring and control of costs and focus on operational and production efficiencies.”
Lockdown led to a production pause in early April, just as the new financial year began.
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Looking ahead from the year-end, Mr Howarth said: “During April, as more guidance and certainty was available on the operation of construction services in the 海角视频 whilst in lockdown, demand increased and training has been strong throughout the summer months. There has been little impact on the assets of the trading business and the company remains profitable and in a strong position."
A clamour to create outdoor 'Covid-safe' spaces in the hospitality sector may account for some demand.
While monitoring potential recessionary impacts and further Covid wave impact, Mr Howarth said: “Arbor Forest Products will continue to invest in both plant machinery and site capacity to meet a growing demand for its products and management are confident that it will be able to continue to grow in the medium to long-term in a controlled and profitable manner despite the competitive market it operates in.”