Fife-based James Donaldson and Sons Ltd has announced a profit of £2.2m in its end of year results.
Turnover for the year to March 2013 for the timber specialist business remained static at £105m but an improvement in margin and efficiency gains helped increase profit before tax by 8.4 per cent.
Executive chairman Neil Donaldson said: “To raise profitability by 8.4 per cent in challenging market conditions is a particularly commendable achievement.
“Our borrowings remain low and we have managed to grow net assets to £18m.
“In addition, we have further strengthened our service offering by investing £1.2m in new machinery at our Chorley sawmill site and continue to look for opportunities in the market to help expand our product range.”
Managing director Scott Cairns said the company had made considerable progress over the year, despite a combination of low housing starts and poor general construction activity.
“All core trading companies within the Donaldson Group have grown market share in the year,” he said.