Turnover and profits up for holiday homes firm
STRONG POSITION FOR MARKET LEADER AFTER
TURNOVER and profits increased at holiday homes market leader Willerby despite ongoing disruption to operations. The Hull manufacturer overcame significant supply chain challenges posed by Covid-19 to deliver a strong set of results, and now holds a full order book through to late 2024.
Sales were up six per cent from £122.5m to £129.9m in the year to October 2. Operating profit was up 20 per cent from £2.5m to £3m.
It comes with employee numbers up 250 through the pandemic period, with 1,150 now employed - as it responded to a surge in the sector.
Willerby chief executive Peter Munk said: “These results are very positive. They are a tribute to the success of our business strategy and the efforts of our people in overcoming challenging circumstances.
“The market we serve is exceptionally strong and all the indications are that this will continue well into the future.
“Our industry’s fortunes are directly linked to the UK holiday market and there can be no doubt that the staycation is here to stay.
“British holidaymakers have re-discovered the joys of stress-free and sustainable staycations and short breaks in the UK.
“That has fed through to unprecedented demand for holiday home ownership and bookings at holiday parks across the UK.
“At Willerby these market conditions have given us the confidence to continue to invest in our workforce, talent pipeline, production capacity and product development.”
During the period an additional production line was added, creating more than 100 jobs, and £1.5m was invested in research into new products and improved manufacturing processes.
Willerby also created 31 new apprentice roles – the biggest intake in the company’s history.
A figure of £7.1m was put on the missed opportunity for manufacturing during the interrupted year, a source of some frustration.
Group finance director Sue Allan said: “These results demonstrate the resilience of the business and our ability to withstand significant pressures. It was frustrating that we were unable to operate at full capacity during a period when we were seeing exceptional levels of customer demand.
“Despite operating a very successful Covid test centre and daily testing regime, we had significant numbers of employees off work at various periods during the year.
“Our suppliers also suffered disruption due to Covid and global supply chain issues around the availability of materials.
“We countered these factors with effective measures, including investing significantly in higher raw materials stock levels to guard against shocks to the supply chain.
“The range of actions delivered increased turnover, profits and cash generation.
“We’re now in an exceptionally strong position, with a full order book into late 2024 and investments in our capacity, people and products ensuring we’re well placed for continuing, long-term growth.”
Further steps on sustainability were also taken, with a £1.2m biomass heating system becoming operational, removing 1,000 tonnes of carbon, while electric vehicles were also further introduced.
For the past five years the business has been majority owned by Equistone Partners Europe, a mid-market private equity house, with a minority stake held by the management team.