TIMBER company James Donaldson & Sons has agreed a £16 million funding package with Royal Bank of Scotland, which will support the Fife firm's growth plans.

RBS said that the new banking relationship would provide strategic funding services across the timber group, comprising James Donaldson Timber, Donaldson Timber Engineering, MGM Timber (Scotland), and James Donaldson Insulation.

The bank said it would provide a debt structure to support the existing operating and capital expenditure requirements and growth plans of the timber group..

RBS noted that the Fife company, a processor, manufacturer and distributor of timber and engineered timber products, had been a force in the UK timber industry for more than 150 years.

James Donaldson & Sons' turnover rose to £117.2 million in the year to March 31, 2014, from £105.4m in the prior 12 months. Pre-tax profits climbed to £2.49m, from £2.2m.

The timber group supplies housebuilders as well as the commercial and industrial construction sectors.

Andy Kilgour, regional director of RBS Corporate in Edinburgh, said: "A family business with a long and proud history, James Donaldson & Sons remains very focused on its future, with ambitious growth plans."

He added: "We are delighted to be working closely with the team as they embark on the next chapter of the company's history."

Law firm HBJ Gateley advised James Donaldson & Sons on the negotiation of the funding package from RBS.

Euan Cluness, a partner with HBJ Gateley, said: "The move to RBS as funder was a significant transaction for James Donaldson & Sons Limited, and will provide them with a fantastic platform to fund future expansion."

He added: "It was of key importance to the Donaldson group that the transfer was undertaken on time and with the minimum of disruption to their business, and this was achieved by the pragmatic and commercial approach taken by all parties."