The Stewart Milne Group reports “record” profits and says plans to expand its timber frame business in England are progressing well.

Pre-tax profits rose 13.3% to £8.5m for the year ending June 30. The timber systems division’s turnover was up £2m to £36.5m while housebuilding sales increased slightly to £107m.

The Witney timber frame factory will be running at 75% capacity by the end of this year and is on course to reach maximum output – 6,000 homes a year – by the second quarter of 2003.

The £10m factory was set up to help service existing English customers and expand the timber frame business.

Stewart Milne, chairman and chief executive of the Stewart Milne Group, said: “We certainly see a lot of potential in the English market. The timber frame market in Scotland is quite mature with nearly 60% of all new homes built, whereas in England it’s way down at 10%.”

&#8220We see a lot of potential in the English market. The timber frame market in Scotland is quite mature with nearly 60% of all new homes built, whereas in England it’s way down at 10%.”

Stewart Milne, Stewart Milne Group chairman and chief executive

He said the company plans to build and sell timber frame homes under its own name within three to five years.

“Our main focus over the next three years will be to build up our timber frame operation in England and housebuilding position in central Scotland,” he said.

The bulk of Witney’s future production will still be destined for other housebuilders.

The company believes timber construction systems “can only benefit” from the government’s backing of environmentally-friendly and sustainable methods of construction, plus its stated aim of providing more affordable housing.