Turnover stagnates as Naylor invests
Pipe manufacturer sees operating profits slide
Construction products manufacturer Naylor Industries saw turnover growth stagnate and operating profits slide as the Barnsley- based firm completed a year- long investment programme.
The business described the 12 months ending February 28, 2018, as a “transitional year” as it built a new £ 5m large pipe factory, relocated two of its businesses to newly purchased freehold sites at Barugh Green and Wombwell and acquired White’s, a precast concrete business.
Naylor Industries said annual turnover was £ 50.1m, below the £ 51.3m of the previous period, as a result of the major development work.
The company generated an operating profit before exceptional items of £ 1.8m compared to the previous year’s £ 3.4m.
Chief executive Edward Naylor said: “Following a long sequence of years of record- breaking turnover, we recognised the need to increase capacity and initiated a transformational capital investment programme.
“Not surprisingly, this development work led to a pause in turnover growth in 2017- 18, although we managed to maintain sales at close to the previous year’s levels.”
Mr Naylor said that the company had now concluded its capital investment programme and brought a number of new environmental products to market.
He added that he was “excited” about the short and medium- term prospects of the business.
Naylor Industries employs 400 people at five sites across the UK and serves customers in the infrastructure, agriculture and utilities markets. Its new factory at Cawthorne was opened by the Duke of Kent in October 2017.
It allows the family- run business to manufacture larger diameter pipes to carry big volumes of surface water, providing the UK with protection against flooding from extreme weather.
Mr Naylor said: “Every year we seem to be seeing once- in- a- lifetime weather events. As it rains more heavily, we need larger capacity pipelines to deal with storm water.
“Large diameter pipes are an important part of measures to defend the country against flooding.”
The financial year ending February 28 also included the disposal of a non- core business, the Hyde- based materials processor Naylor Polymers.
Naylor says it has seen a pick- up in sales after being hit by a slow start to the current financial year due to the adverse weather.
“After a weather- related slow start to 2018- 19, we have seen an encouraging pick- up in sales across all our businesses and we believe we have laid the foundations for a period of significant growth and increased profitability,” Mr Naylor said.
Naylor has been a family- run business for 125 years. Edward Naylor, a former City accountant, took over the business in 1993 after his father died, buying out his brother’s share as well as his uncle’s 50 per cent shareholding.
PIPEWORK: Edward Naylor, chief executive of Naylor Industries.