A TIMBER-FRAME house building business is set to continue recruiting scores of jobs at its Oxfordshire base, a year after setting up its English headquarters in the county.

Stewart Milne, chief executive of the Stewart Milne Group

Stewart Milne Group already employs 110 people at its new Witney factory, and managers expect that figure to increase to 200 during the coming year.

The news came as pre-tax profits for the Scottish firm rose 13.3 per cent to £8.5m, compared to £7.5m for the same period last year.

Group managing director Glenn Allison said: "These are remarkable results achieved from a standing start in Witney.

"There is almost full employment in this area, but many staff have joined us who previously worked in industries such as blanket making and electronics. Many of them are in the 30-40 age range."

In Scotland about 55-60 per cent of houses are now built with timber frames. In England, with a population very much greater and expanding, the figure is under ten per cent. Chairman and chief executive Stewart Milne said that was set to increase and the company expected double its market share by 2005.

It is now discussing the possibility of a timber frame estate with West Oxfordshire District Council.

The company's major customers are the large house builders including Bellway, Berkeley Homes, and Persimmon.

Mr Allison said: "The gap in the South East of England between demand and availability of houses is so large that it cannot change quickly. I see future house prices continuing to increase, but at a slower rate.

He added: "Witney was the perfect place to set up our new production facility because of the ease of road, air and sea connections.

"In addition, we have been able to recruit school-leavers and more mature workers in the area who had previously been employed in traditional industries."

The company produces timber frame kits for builders, but in the long term intends to construct and sell houses under its own brand name.

The £10m investment at Witney has a capacity to produce 6,000 kits per year.