Nairn wood firm vows to continue investment despite a drop in profits
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A Nairn-based wood firm has vowed to continue its investment plans despite a drop in revenue and profit last year.
John Gordon and Son – which is an expert in felling, milling and marketing of British timber – made the commitment in a strategic report accompanying its accounts for the year ended June 30, 2020.
The report, which was written prior to the current lockdown, stated: “Having come to the end of year two of our five-year strategy, it is pleasing to report that we remain on target and committed to reinvesting significant sums over the duration of the current strategy.”
It stated a reduction in turnover of 20 per cent was partly due to lockdown restrictions.
The report went on: “For the first nine months of the financial year, the company was challenged with the uncertainty over Brexit and significant quantities of imported wood coming from central Europe and Scandinavia.
“This year, like all businesses worldwide, it has had to face up to the implications of the Covid-19 pandemic. After an initial period of furloughing the vast majority of our staff, during which time we introduced rigorous safe social-distancing protocols, the company carried out a phased restarting of its sawmilling processes.
“This reduction in activity, coupled with the significant fall in selling prices, led to a negative impact on turnover and profitability.
“It is a great tribute to all employees that they have shown both flexibility and adaptability in these rapidly changing and extreme circumstances. Led by the senior management team, who have continued working throughout lockdown, the delivery of another year of profitability is a remarkable achievement.
“Our thanks go to everyone in the business for making this possible.”
Turnover dropped from £22,015,568 in 2018/19 to £17,515,996 last year. For the same period, pre-tax profit moved from £2,197,803 to £397,659.
The report added: “It is clear that the impact of the pandemic will have a detrimental effect on the UK economy for some time to come, as a result the company will continue to focus on controlling costs and maximising efficiencies in the year ahead.”
The average number of employees dipped from 88 in 2018/19 to 85 last year, while staff costs fell from £3,122,776 to £2,934,952.
Read more about the timber industry.
