BSW Timber, the sawmilling giant, has narrowed losses to £2m as it grew revenue by 17 per cent to £287m.

The Berwickshire group, which operates seven sawmills across the UK and one in Latvia, said the loss came as a result of rising log prices and uncertainty in the marketplace.

Last year the group made a loss of £6m, following a profit of £9m the previous year with the cost of buying logs increasing due to the weakness of the pound.

The cost of sales at the business climbed 17 per cent in the year to March 31 2017, but the sales increase helped offset this.

Writing in accounts newly filed at Companies House, finance director Howard Jones said this had not deterred the company from its investment plan.

This includes spend on efficiency and products, with the directors regarding research and development as “integral to the continuing success of the business”.

“[The current financial year] looks to be challenging, not least due to political uncertainty, but the company is well-placed to continue to grow its market share with new products and markets being explored aligned with a continuing recovery in the UK,” wrote Mr Jones.

In the year, £259m of sales came through its UK sites, with £18m in the European Union and £10 in the rest of the world.

The number of employees at the group increased by 25 to an average of 1,262.

BSW also owns Tillhill Forestry, the largest forestry management and harvesting company in the UK.