Wirral wood import and distribution specialist Finsa UK, which now occupies a new £20m Birkenhead facility, warns war in the Middle East is raising supply chain costs as it reports a dip in sales to £59m. Tony McDonough reports
Weeks after completing its new £20m administrative, import and distribution facility in Birkenhead docks, wood specialist Finsa UK is reporting a fall in annual sales.
And the company, which is a wholly-owned subsidiary of Finsa in Spain, warns that the ongoing conflict in the Middle East is impacting energy costs and is pushing costs higher in the wider supply chain.
Finsa in Spain is a manufacturer of wood products, in particular chipboard and MDF. Finsa UK is a sales and distribution operation which supplies the construction and DIY sectors in the UK.
In it accounts for the 12 months to December 31, 2025, Finsa UK is reporting a 7% fall in revenues to £59m. Pre-tax profits, which came in at £1.1m, were almost identical to the previous year.
However, in the report managing director Raquel Carrillo said the business had managed to increase its gross profit percentage to 10.7%, against 9.6% in the previous year, by focusing on high margin products.
She added: “In 2025, the UK construction industry has seen slow but steady growth. However, the core markets of housing and infrastructure did not benefit from this trend, facing significant challenges, including weak demand and insolvencies.
“These conditions led to some reorganisation within the supply chain, which particularly impacted the wholesale distribution and DIY channels.”
In early May LBN revealed that building firm Glencar had completed the new 164,000 sq ft Finsa UK headquarters in Wirral Waters. This project was delivered on target and on budget.
Glencar undertook the project on behalf of site owner Peel Ports Group, a longstanding client. This scheme comprises 158,904 sq ft of warehouse logistics space and 5,000 sq ft of timber-framed office space.
On its 2026 prospects Raquel admitted the ongoing impacts of the war between Iran, the US and Israel was “unpredictable”.
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She explained: “A new context is being created in which the global economy is being affected by increases in the prices of raw materials, fuels and energy as well as by increased tension, difficulties and costs in supply chains.
“Directors foresee that 2026 will continue to be a year of weak levels of activity among the construction industry… it is expected that manufacturing prices for construction materials will increase in 2026, hitting consumers’ ability to increase spending in housing, home decoration and furniture.”