Profit boost for Yorkshire family firm

A SIGNIFICANTLY improved trading performance has helped Yorkshire family firm Arnold Laver boost profits by more than 30% and report a rise in revenue.

For the year to the end of June 2014, the Sheffield-based timber products business saw turnover increase by almost 9% to £105.9m and operating profit rise by 16% to £5.7m. Pre-tax profits increased by 32% to almost £4m.

In the directors’ report to its annual accounts which have been filed at Companies House, Arnold Laver said the improved performance at the start of the financial year came from new house building, however, as the year progressed, other segments of the construction market, such as infrastructure works, hotels and student accommodation grew well.

Arnold Laver said: “The current financial year has started well with our order intake continuing to increase. The construction sector as a whole looks well positioned to continue to grow over the coming years. It will not however be immune to macro level events, which may disrupt growth in the short term. We remain confident that our business is well positioned to take advantage of the expected growth in construction. As well as growth through our existing depot network, we intend to recommence our carefully selected depot expansion programme during 2015.”

The firm, which has almost 580 employees, said that due to longer lead times, increases in commercial development did not impact the 2014 trading year, however it expects to see an increase in the current financial year from this sector.

During the year under review, the Yorkshire business said it has continued with the strategy of ensuring the growth in turnover is broadly based and not over reliant on any one sector.

“We have continued to add innovative new products to our offer and further strengthen our bespoke manufacturing capabilities. This has resulted in some significant contract wins in infrastructure, refurbishment works and the public sector,” the report said.

During the year, Arnold Laver established an academy to train apprentices and graduates. The objective is that the academy will provide the next generation of individuals to drive the company forward.

Looking across the business, the firm, which operates in timber importing and merchanting, leisure and property development, said its timber business is well placed to take advantage of the recovery in the construction sector.  It added that the leisure business had a record year and continues to operate at capacity. The property division had another successful year and construction continues on the large public private partnerships at Bradford and Chesterfield.  Arnold Laver said that solid progress has been made on the other schemes it’s involved with and end-users are committing to projects.

“We are confident of increasing the property income stream going forward as well as realising significant capital receipts,” it said.

The company can trace its roots back to 1920, when First World War veteran Arnold Laver used his savings to establish a timber merchants in Sheffield.

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