SCOTT Timber, the saw mill and pallet manufacturer, has reported profits broadly unchanged at £4 million in a year that saw it successfully integrate a company acquired south of the Border.

The Fife-based firm, a division of Scott Group Investments, said the £1.3m acquisition of HLC (Wood Products) and its subsequent merger with Scottish Pallet activities in the south east of England “has gone extremely well”.

The deal came in a year that saw the company, which employs about 600 staff, turn over £87.7m, down marginally on the £88.7m recorded in 2014.

Declaring the outlook for its current year is “considered positive”, Scott reveals in accounts newly filed at Companies House that it has made a further acquisition since year end.

Northern Case Limited was acquired in August in a deal that Scott said has “provided additional automated pallet production and the opportunity to consolidate activities in the vitally important north west region of England”.

The company said: “Into 2016 the enlarged business has continued to strengthen and grow with a number of significant business wins and contract renewals.

“Pallet recovery and re-use continued to be promoted and is expected to growth further as

more customers recognise the commercial and environmental benefits on offer.”

The accounts show the company employed an average of 599 staff during the year, compared with 662 in 2014, while payroll costs dropped to £15m from £16.2m.

Directors’ remuneration edged up to £738,967 from £623,791, with contributions to directors’ pension schemes booked at 35,872, down from £44,357.

Mulling the outlook for the current year, Scott said: “Market conditions remain challenging with many industry sectors running below budgeted activity levels and the weakening

of sterling currency impacting on imported timber costs.

“The business is, however, well positioned to navigate these difficulties and strive for continued growth and development.”

No dividends were paid during the year, with the directors adding they had not recommended a final dividend is paid.