Major UK timber importer and distributor Arbor Forest Products saw its pre-tax profits almost treble to £17.7m for the year ended March 31, 2021, according to its annual full accounts posted at Companies House on December 29.
The pre-tax profits increased from £6.4m in the previous financial year.
Sales were up 31% to £125.7m (2020: £95m), with half the growth due to price inflation and half due to volume growth.
Net assets were £51.9m (2020: £39.7m) and stocks £15.5m (2020: £12.7m).
“The year to March 31, 2021 has been turbulent, mainly due to the Covid-19 impact on our markets, global timber prices and supply chain disruption,” said director Andrew Howarth.
He said garden products and DIY related demand had been strong in the period, but led to issues such as demand outstripping supply, with the majority of products on allocation from the summer months of 2020. Prices of certain grades doubled over the 12-month period.
Due to the higher volumes, the business has operated more efficiently than in prior years on machined products which attract higher margins.
In addition, the company brought on line a new £6m System Hall sawline with a higher output than its other saw lines. The production increase resulted in a greater volume of wood shavings waste which was sold on at higher prices, generating an additional £700,000 profit compared to the previous year.
Despite Covid-19 having had a positive impact on demand, Arbor said business could be impacted in the future by a move away from home improvements.