The Fife-based group said it benefited from strong demand for new homes and a buoyant repair, maintenance and improvement market.

Turnover for the year to March 31 slipped back 4.3 per cent to £127.1m largely due to but subdued timber prices but group managing director Scott Cairns said market share across its business areas had remained strong.

“Improved operational efficiency, aided by record levels of capital investment and strong cost control assisted in delivering our overall increased profitability,” he said.

Cairns said that the company would “watch conditions carefully in the coming months as the post-Brexit market adjusts to a new reality”.

“There are challenges ahead, however, we face them from a position of strength,” he added.

The group incorporates James Donaldson Timber, Donaldson Timber Engineering, MGM Timber (Scotland) and James Donaldson Insulation, and operates from 25 sites across the UK. Earlier this year its Perth-based timber merchant subsidiary announced plans to expand into three new areas of Scotland.