MacTaggart & Mickel, the privately-owned housebuilder, has moved into the timber frame production business by buying Kelvin Kit out of administration for an undisclosed sum.

The purchase will give the Glasgow-based company control of an established business which has been producing more than 1000 home kits annually.

Managing director Ed Monaghan said the acquisition formed part of a long-term growth strategy for MacTaggart & Mickel. The company aims to build 500 homes annually by 2010, compared with 170 in the year ended April 2006.

Having a timber-frame manufacturing capacity should allow the firm to boost margins by completing an increased share of construction work off site using standardised products such as bathroom pods.

A spokesman said the purchase came as MacTaggart & Mickel approached the end of another successful year's trading. The company increased pre-tax profits 95% to £12.4m in the year ended April 30, 2006, on the back of the enduring central belt property boom.

Sales rose from £28.5m in 2005 to £37.7m. The company widened margins as a result of increasing efficiency.

Following the purchase, Kelvin Kit, which has 20 employees, will operate under a new management team as M&M Timber Systems Limited.

Kelvin Kit was launched in 2003. It was formerly part of Coatbridge-based Kelvin Homes.