Turnover stag­nates as Naylor invests

Pipe man­u­fac­turer sees op­er­at­ing prof­its slide

Yorkshire Post - Business - - BUSINESS / NEWS - Is­mail Mulla BUSI­NESS RE­PORTER @ Is­mailMulla

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.

PIC­TURE: BRUCE ROLLINSON

PIPEWORK: Ed­ward Naylor, chief ex­ec­u­tive of Naylor In­dus­tries.

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