FORTY people were evacuated from their homes when fire tore through a timber yard causing damage estimated at hundreds of thousands of pounds.

Flames surged 60ft into the air as the blaze took hold at the Northallerton depot of North Yorkshire Timber, gutting a large warehouse and destroying its contents.

At the height of the inferno, as the building's walls exploded with the heat, 70 firefighters were battling the blaze.

But despite the devastation, bosses at the firm said the jobs of the 60 people who worked there were safe and said business would continue as normally as possible.

Sales and marketing director Nick Kerhsaw said: "This has been heartbreaking for us.

"But we are looking forward and being positive about this. We are not going to lie down and let this beat us."

The fire broke out at the Springwell Lane premises shortly before midnight on Friday. Firefighters were quickly at the scene and called for extra help.

Crews from a dozen appliances succeeded in preventing the fire spreading to the yard's outdoor timber stores and nearby properties.

Forty people living nearby were temporarily evacuated to the town hall, while others were warned to keep windows and doors closed as thick smoke billowed from the yard.

The fire-fighting operation started to be scaled down at about 3am, but three appliances remained at the scene until Saturday afternoon, as firefighters damped down hotspots and began an investigation into the cause.

Fire brigade spokesman Terry Glover said some corrugated asbestos walls had been on fire, but reassured people that it did not pose a danger.

North Yorkshire Timber, which celebrates 25 years in Springwell Lane next year, will continue to operate with the help of its other depots in Ripon, Richmond, Middlesbrough and Sunderland.

The treated and seasoned timber stored in four acres of the five-acre Northallerton site was also untouched by the blaze.

A fire investigation team will now try to establish the cause.

A spokesman said: "While it has not been ruled out, there is no indication that the cause of the fire is suspicious."