A top boss at Cowley-based builders' merchants Buildbase has delivered a heartfelt assessment of how the credit crunch is impacting on the business.

Kevin Middleton, until recently chief executive at the firm, says 2008 has been the most difficult period in the company's 12-year history with branches across the country experiencing a drop in sales and lower margins.

Writing in staff magazine, Buildbase Focus, Mr Middleton said: "We are all too aware that consumers have reined in their spending and are not embarking on new building projects.

"Non-essential home improvement work has been cancelled as everyone is making savings where they can.

"It is with great regret that, like many other businesses in the building trade, we have been forced to make savings.

"Sadly we have had to make some redundancies across the branch network. It is important to keep Buildbase as competitive as possible and we have had to look at all options to ensure the company is in the strongest position to meet the challenges ahead."

Management has confirmed there will be no redundancies at the Cowley headquarters of Buildbase, which is the shirt sponsor of Oxford United.

Mr Middleton has taken over a new role as managing director of Buildbase parent company Grafton Merchanting GB, while Stephen Thomstone has stepped in to become managing director of Buildbase.