Fire investigators were this morning on site at at Canalside Carpets and SWG carpentry and building contractors, after the fire which broke out at about 11.45pm last night.

Dyfed-Powys Police have confirmed a 48-year-old local man has been arrested on suspicion of arson this afternoon and is currently in police custody.

Five crews from Welshpool, Montgomery, Llanfair Caereinion and Oswestry were called to tackle the blaze which took until 4.30am to put out and left the site off Severn Road "quite badly damaged" according to Mid and West Wales Fire and Rescue Service control room.

The precise cause of the fire is being investigated this morning, they said. No-one was hurt in the fire.

Police also attended and warned residents nearby that they may have heard small aerosol explosions in area due to the blaze.

Jacqui Gough who works for the businesses said the blaze has cost the firm thousands through destroyed stock and materials, although she was keen to stress it was business as usual at both businesses.

She said the firm wanted to thank the emergency services for their rapid response and local people for their support.