Wavin UK reported growth with the company said to have performed "creditably" despite challenges in the construction sector.
A plastic pipes manufacturer has reported growth in its latest financial results, with the company said to have performed "creditably" despite challenges in the construction sector.
Wavin UK manufactures and sells plastic and clay pipe systems to customers such as building and civil wholesalers and plumbing merchants. The company is based in Doncaster with facilities in Chippenham and Hazlehead.
Recently filed accounts for Wavin Ltd show a pre-tax profit of £28m was recorded in the year ending 31 December 2022, up from £15.4m in 2021.
Turnover also increased to £244.1m from £217.8m the previous year.
In their report accompanying the results, the directors said Wavin UK had performed "creditably" during the financial year.
"The year started broadly flat in terms of sales volumes," they said. "Growth in the early months of the year continued to be hampered by a combination of material supply issues leading to some extended lead times and wider building material and labour shortages which dampened general housing construction activity.
"Markets softened as the year progressed with sales volumes in each subsequent quarter progressively below their corresponding prior year comparison as economic sentiment following the war in Ukraine, inflationary headwinds, increasing interest rates and reduced real incomes acted as a brake on both construction and the repairs, maintenance and improvement (RMI) sector.
Input costs, particularly raw materials, energy and labour increased significantly during the year. Material costs peaked in the late summer and then broadly stabilized. The company's hedging policy and Government support from Q4 onwards helped provide some protection against the worst of the energy inflation. However, this all contributed to a significant increase in product costs with energy intensive clay product ranges particularly affected."
The 12 per cent rise in revenue was put down to price increases, as higher input costs were passed through to the market, which compensated for lower trading volumes.
Wavin is part of the Orbia group of companies. Wavin Group has more than 12,000 employees in 40-plus countries worldwide and operates under brands like Wavin, Amanco and Pavco.
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