Naylor Industries plc, the construction materials manufacturer, has reported continued progress in a “transformational year” with a £10m investment programme and reshaping at the Barnsley-based group.
In the financial year ending 29 February 2024, Naylor finalised closure of its clay pipe business, whilst investing heavily in its plastic pipe operation, which has grown rapidly since its formation in 1999.
The group restructured immediately after the year end, and now comprises two groups under common ownership but independent from each other in structure: Naylor Drainage Ltd, a focused plastic pipe business and Naylor Industries Ltd, a more diverse group of concrete, plastic extrusion and technical construction product businesses. The company also merged its Yorkshire Flowerpot gardenware business with Welsh-based terracotta pot manufacturer Smith & Jennings to form a 50/50 joint venture, which recently completed construction of a purpose-built manufacturing facility at Cawthorne, Barnsley.
Naylor’s turnover decreased 8 per cent to £72.0m (2023: £77.9m) during the financial year, although most of the reduction related to the discontinuing clay and gardenware businesses, with the core plastic pipe business showing encouraging year-on-year growth.
Naylor again invested heavily in plant and premises, with £10.0m of capital additions (2023: £6.1m) including construction of additional factories and a new office on the company’s Cawthorne site and acquisition of additional extrusion and manufacturing equipment. An active product development programme resulted in several recent product launches including new cable ducting and sewer pipe systems. Despite the disruption associated with construction works, new equipment commissioning and closure of the clay business, profitability held up well, with underlying profit before tax of £4.6m (2023: £5.6m).
Naylor Chief Executive Edward Naylor said:
“The year has been transformational: we have reshaped the group and undertaken a major investment programme. Despite difficult trading conditions, sales and profitability have held up well.”
Naylor added: “We have mixed emotions about the closure of our clay pipe business. Strategically, focusing our pipe business on the growing plastic market is clearly the right thing to do and there are tremendous growth opportunities in this industry. At the same time, clay pipe production is very much part of our heritage, being the product we started out manufacturing when we were founded in 1890.”
Despite the wider economic uncertainty, Naylor remains optimistic about the future, with business development plans for the coming years including further significant capital investment and a substantial new product pipeline. An ongoing apprentice programme is introducing the next generation of skilled employees into the business with 6 recruited in the last financial year.
