Privately-owned housebuilder Strathclyde Homes of Glasgow has formed a subsidiary company – Strathclyde Timber Systems – to acquire the assets of Novaside Timber Systems Ltd, the Cumbernauld-based timber frame manufacturer which went into receivership last month after encountering cash flow problems.
The deal, which secures 25 jobs at Cumbernauld, has been financed by a £1m, five-year funding package from the Royal Bank of Scotland. The acquired assets include Novaside’s 35,000ft2 factory, 6,000ft2 of office accommodation and 15 acres of land, as well as general stock, plant, machinery, vehicles and goodwill.
According to Strathclyde Homes, there is the potential to double manufacturing capacity at Novaside, which stands at 400 timber frame kits per year. The business will be guided initially by Strathclyde’s finance director Martin Feeney prior to the appointment of a general manager and sales and development manager.
Strathclyde Homes’ managing director John O’Neill commented: “This acquisition gives us a real opportunity to grow an existing timber frame business and allows us to have more control over the whole new-home production process. Timber frame construction is growing in popularity in Scotland and North England. To help meet this demand we intend to double the timber frame company turnover over the next three years.”
Novaside Timber Systems Ltd turned over £4m in its most recently completed financial year. Strathclyde Homes achieved pre-tax profits of £1.2m on a turnover of £18.2m last year.
