An oak frame builder has acquired a section of timber specialist Xylotek, rescuing jobs and operations disrupted by supply chain challenges.
- Xylotek faced significant operational hurdles following the death of its co-founder and the collapse of its main subcontractor, prompting a sale.
- The pre-pack purchase by Carpenter Oak for £135,000 preserved 16 jobs at the Bristol-based timber firm.
- Xylotek experienced a rapid yet challenging growth spurt, with turnover peaking at £7.9m in 2023.
- Despite its niche expertise in the construction sector, Xylotek struggled with internal complications, leading to losses on key projects.
In a strategic move, an oak frame construction company has purchased a portion of Xylotek, a specialist in timber construction, addressing severe challenges faced by the latter due to disruption in its supply chain. The transaction, valued at £135,000, was executed through a pre-pack arrangement, ensuring the retention of 16 employees out of a previously larger workforce.
Xylotek’s difficulties became apparent earlier this year, exacerbated by the unfortunate passing of Charley Brentnall, one of its co-founders, and further compounded by the failure of the primary subcontractor involved in its largest project. These events set in motion a chain reaction that necessitated seeking the counsel of ReSolve Advisory, administrators who were approached in February for investment options.
Despite acknowledging interest from potential investors, no financial backing materialised, resulting in the decision to proceed with the sale. Xylotek, which once saw its annual turnover reach £7.9 million in 2023 thanks to a series of lucrative contracts, disclosed no profit or loss figures for 2022, leaving its financial health largely speculative.
Administrators described Xylotek’s ascent through rapid expansion as problematic, noting that the pace of growth was unmanageable and ultimately led to financial strain as losses accrued on several major contracts. Through its existence, Xylotek carved a niche in the UK construction industry, contributing to significant projects such as the ABBA Voyage arena in London and ongoing work at the Natural History Museum.
Carpenter Oak, the acquiring entity, recognised the value that Xylotek’s specialised expertise brought to the timber construction field, especially as market demand grows for environmentally sustainable and aesthetically pleasing building materials. Managing director Luke Copley-Wilkins expressed enthusiasm about integrating this expertise into their operations, filling a crucial gap previously unmet in the supply chain.
The acquisition by Carpenter Oak has ensured the preservation of jobs and expertise within Xylotek, safeguarding its role in the construction industry.
