Strong results for pipe manufacturer despite challenges

A plastic pipes manufacturer has reported a strong performance in its latest financial results, with growth in revenue and pre-tax profit, despite challenges during the year.

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 turnover of £217.8m for the year ending 31 December 2021, up 34 per cent from £162.6m in 2020.

Pre-tax profit also increased to £15.4m from £10.4m the year before.

In their report accompanying the accounts, the directors said 2021 had provided a "strong recovery" from the impact of Covid the prior year but "was not without its challenges".

They said: "2021 started well with a strong performance in H1 despite intermittent disruption to raw material supplies particularly PVC following bad weather in the USA, and key suppliers declaring force majeure. This created some disruption, inefficiency and additional costs across our production facilities and distribution network.

"Construction activity through H2 was impacted by wider building material shortages and labour availability which dampened growth though there were some signs of improvement in Q4. These constraints contributed to an increase in the length of time between housing starts and completions which in turn resulted in our below ground ranges growing at a faster pace than our above ground ranges."

Wavin also benefitted from a strong intercompany performance, with revenues increasing by 62 per cent following a strategic decision to close out PVC fittings production in Balbriggan, Ireland and consolidate manufacturing for the UK and Ireland territory out of the Chippenham site.

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.

Original Source