Donaldson holds firm amid recession in construction sector

Published on Tuesday 10 August 2010 21:24

TIMBER group James Donaldson & Sons remained in the black last year despite the felling of the construction industry, according to figures released yesterday.

The Fife-based firm returned a pre-tax profit of 615,000 in the year to 31 March, compared with 709,000 in 2009. But the figure is a shadow of the 3 million profit posted during 2007-8 at the height of the housing boom.

Donaldson took steps to combat the downturn, cutting staff numbers from 572 in 2008 to 491 in 2009 and reducing costs.

But the company - which marked its 150th anniversary in June when Prince Andrew visited its sawmill - has started growing its workforce again, taking its headcount up to 521.

Turnover at the family-run company is also on the rise again, increasing by 3.5 per cent to 80.7m. Back in 2008, revenue had hovered just below the 100m mark.

Neil Donaldson, chairman and chief executive, said: "The performance of the group represents a commendable achievement given the economic backdrop.

"We are incredibly proud to have not just survived, but to have actually made a profit during the recession, when so many businesses are disappearing around us."

Looking to the year ahead, Donaldson added: "The market has picked up in recent months and trading has been better than we have experienced for some time; we've had a very promising start to the year. However, our new coalition government is keen to cut public spending, which may impact on our trading in the months ahead."

Donaldson traces its roots to Tayport, on Fife's north coast. Today, the group has its headquarters in Markinch, with its sawmill company based in Leven and its engineering arm in Buckhaven.

The group also owns Perth-based MGM Timber and a hardwood firm in Buckinghamshire.