Export sales provide profit boost for Pegler

CLIMBING export sales have helped plumbing and heating manufacturer, Pegler Yorkshire, report an increase in pre-tax operating profits. 

In its 2012 financial results, the company, which has sites in Doncaster, Leeds and Manvers, said it has seen a 6% increase in pre-tax operating profits to £7m. It said these results have been primarily driven by a 25% increase in export sales to the Middle East. 

The company said: “The UK market remains challenging, however, despite a reduction in turnover Pegler Yorkshire has been able to maintain margins with efficiency improvement being the principal reason.”

Pegler Yorkshire’s finance director, Ian Howarth said: “Against a challenging year, our business is moving in-line with expectations. Sales into the Middle East have been going from strength to strength, whilst austerity measures both in the UK and Eurozone has translated into decline in the construction market.

“We have continued our investment programme, which has seen an injection of £7m in machinery and equipment at both our Yorkshire manufacturing sites furthermore, efficiency measures within distribution and general operations following prior year’s investments have driven our cost base down by 7.9%.”

Pegler Yorkshire said it is now looking to develop products.

Phill Jackson, marketing and business development director for Pegler Yorkshire said: “Recent reports have highlighted a rise in UK manufacturing output over the last few months, which is a good indicator for sustained recovery in our sector.  Yet, it would be difficult for this to continue if UK manufacturers don’t continue to push the boundaries of innovation, target additional markets and ultimately invest in their own business.”