(Image: Getty Images)
A Scottish sawmill and pallet manufacturer has reported a £30 million drop in sales.
The Fife-registered company reduced its average worker count by 82, from 1,001 to 919, amid low demand.
Scott Timber Limited reported that turnover fell almost 18% to £139.1 million in 2025, from £169.3m the year before. Gross profit rose sharply from £21m to £33m, while administrative expenses fell to £24.2m from £25m.
The improved margins helped the firm swing from an operating loss of £3.5m to an operating profit of £9.6m.
New accounts for the year ended December 31, 2025 showed pre-tax profit was £8.7m, compared with a £5.7m loss in 2024, while the bottom line moved from a £4.6m loss to a £5.9m profit.
Scottish timber company cuts workforce by 80 as sales drop by £30 million (Image: Getty Images)
The directors said in their annual report: “The UK economic environment provided general challenges in the year with low demand for pallets seen across our primary operating sectors.
“Despite this reduced turnover compared to the prior year, key initiatives around improved pricing and direct cost reductions helped deliver a notably improved gross profit margin."
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The directors said: "The main factors influencing the economic conditions is the inflationary and cost of living pressures that continued into 2025.
“Costs have remained high due to global political uncertainty. This has had an impact on commodity costs throughout Europe. The sustained cost of living pressures could impact the domestic demand for timber products.”
Robust
The directors said the ability of the company to continue to operate in the normal course of business is “strong and robust”.
“We continue to invest in processing efficiency and new products in order to better serve existing and new markets,” they said. “The directors regard the investment in research and development as integral to the continuing success of the business and ensuring we provide our customers with good quality innovative products and services.”
The accounts also showed that subsequent to year-end, the Dunfermline-based company disposed of its 50% interest in Allwood Recycling Solutions Limited. The disposal is expected to result in a gain for the company of £5.3m.
The immediate parent undertaking of the company is BSW Timber Limited, part of Binderholz UK Group Limited, and the ultimate controlling party is Binder Beteiligungsverwaltung GmbH, a company incorporated in Austria.