BSW carves out a return to profit

BSW Timber, the UK's biggest sawmill firm, swung back into profit in its last financial year thanks to a recovery in the domestic market and favourable exchange rates.

The Borders-based company, which acquired Scottish rival Howie Group late in 2009 in a deal which saw its founder Robin Howie collect up to 27 million, made a pre-tax profit of 6.02 million in the year to 31 March 2010 compared to a loss of 4.08m in the previous year on increased turnover of 109.75m, up from 101.99m.

BSW, which owns six sawmills in the UK and one in Latvia, said the current year had started well but cautioned that the market was "still not buoyant" and currency markets were uncertain.

Total boardroom pay at the enlarged group increased to 886,000 from 800,000 with the highest paid director, thought to be chief executive Tony Hackney, receiving 409,000 compared to 661,000 the previous year.

The Howie business made a contribution of 14.1m turnover and 719,000 pre-tax profits during the last four months of the financial year.

The Earlston-headquartered company's UK sawmills are at Fort William, Boat of Garten, Petersmuir, Dalbeattie, Carlisle and in Wales. It supplies products to the construction, pallet, packaging, fencing and garden sectors. Earlier this year the company, which employs more than 600, announced plans to invest 7m at the Dalbeattie site it acquired through the Howie acquisition.

BSW said the investment in the plant would drive productivity from 230,000 cubic metres of sawn timber a year to more than 350,000 cubic metres.