Timber frame helps Stewart Milne soar

The timber frame business of Scottish construction group Stewart Milne played a major role in the group's better than expected results for the year.

The timber frame business, with factories in Aberdeen and Oxford, increased sales 13% to £81m, part of record results which saw group turnover soar to £348m.

 The company said although the widely publicised problems at Northern Rock mortgage bank followed repeated increases in interest rates, there was no sign of any let-up in the strong demand for new homes that has been powering growth.

After recording an eleventh successive year of significantly increased profits in the year to June, the company has made a good start to the current period recording strong forward sales.

The acquisition of Perthshire-based A&L King, which was completed this month, will give Milne an extensive landbank in areas like Fife in which it sees room for expansion.

While prices may fall in some areas of the UK, Milne is ready to continue with the push into the English housebuilding market that the group started by acquiring Manchester-based Nuttall Construction last September.