£10m investment programme reshapes construction materials producer
Naylor Industries plc, a 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, while investing heavily in its plastic pipe operation, which has grown 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% 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 year-on-year growth.
The business invested heavily in plant and premises, with £10m of capital additions (2023: £6.1m) including construction of additional factories and a new office at the company’s Cawthorne site and acquisition of additional extrusion and manufacturing equipment.
Despite 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).
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.
“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.”
Business development plans for the coming years include further significant capital investment and a substantial new product pipeline.
The company’s ongoing apprentice programme is introducing a new generation of skilled employees into the business, with six recruited in the last financial year.
