
First reported on The Construction Index
30 Second Briefing
National Timber Group, Britain's largest timber merchant, is on the brink of breaking up as it faces insolvency, with notices of intent to appoint administrators filed for each part of the group. Established by Cairngorm Capital in 2018, the group consolidated several timber companies, including Thornbridge and Arnold Laver, but reported a pre-tax loss of £6.3 million on a £197 million turnover for 2023. Now controlled by Sylvan Span and led by CEO Mark Dixon, the group is in advanced talks to sell substantial parts of its business while seeking additional funding to stabilise operations.
Technical Brief
- National Timber Group, Britain's largest timber merchant, faces potential break-up due to insolvency risks, with administrators potentially being appointed.
- Established in 2018 by Cairngorm Capital, the group consolidated multiple timber companies, including Thornbridge and Arnold Laver.
- The group reported a pre-tax loss of £6.3 million on a £197 million turnover for 2023, highlighting financial instability.
- Advanced talks are underway to sell significant parts of the business, with interim moratoriums preventing creditor enforcement.
- Efforts to stabilise include cost reduction measures and seeking additional funding, reflecting liquidity challenges in the timber sector.
- Notices of intent to appoint administrators have been filed for each entity within the group, providing temporary protection.
- The group's restructuring aims to ensure continued operations and explore strategic options for business continuity.
- Industry context: The timber sector faces challenging trading conditions, impacting liquidity and operational stability.
- For further updates, stakeholders are advised to monitor developments as the group navigates potential sales and funding opportunities.
Context From Recent Coverage
- National Timber Group's pre-tax loss of £6.3 million for 2023, despite a turnover of £197 million, suggests financial pressures that might influence strategic decisions, such as the potential break-up mentioned in the article.
- With only a small cluster of infrastructure-related pieces in the last 90 days, the timber sector's financial challenges may not be widely covered, highlighting the significance of National Timber Group's situation in the current market landscape.
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