R.F. Boyes, the chairman of UK-based PVC window, door and conservatory manufacturer Heywood Williams said 2006 was another year of strong progress with the group beginning to actively implement the gr…
R.F. Boyes, the chairman of UK-based PVC window, door and conservatory manufacturer Heywood Williams said 2006 was another year of strong progress with the group beginning to actively implement the growth strategy outlined in 2005, including the successful acquisition of Carlisle Brass in October 2006. The Carlisle Brass range of high quality architectural hardware products complement Heywood Williams“ existing, primarily PVC, door and window hardware ranges. Heywood Williams has combined all of its hardware businesses into one architectural hardware division to further strengthen the group“s presence in the UK and Irish hardware markets, particularly in the new build and commercial segments. In 2006, the manufactured housing and recreational vehicle markets in which the group operates in North America had a satisfactory 1H but, market conditions became more difficult, particularly in the manufactured housing market, in the 2H. The manufactured housing market has been adversely impacted by the “hard landing” in site built housing in North America, but continues to demonstrate more resilience than the site built housing market. There was satisfactory growth in the European hardware markets, including a modest increase in activity in the UK market during the 2H. Revenue for 2006 was GBP 256.2 million against GBP 262.7 million for 2005; operating profit (stated before exceptional items and amortisation of brands and patents ) increased by 6.2% to GBP 10.3 million from GBP 9.7 million in 2005; profit before tax (stated before exceptional items, amortisation of brands and patents and notional interest) was GBP 9.4 million, the same as in 2005, but 19.0% higher if the one-off Hurricane Katrina FEMA sales impact in 2005 is excluded. Reported profit after tax was GBP 7.5 million versus a loss of GBP 18.8 million in 2005, the first positive retained earnings for the group since 1999. Robert Barr, chief executive said, “Currently, the Group is trading in line with the Board“s expectations”. “Looking ahead, the Board believes that the prospects for the Group as a whole remain positive as it continues to pursue its growth strategy”. “In North America in 2007, industry commentators expect that the manufactured housing market will be broadly flat and that the recreational vehicle market will continue to benefit from positive baby boomer demographics. The team at LaSalle Bristol have already vigorously reduced costs and are taking a cautious view on the manufactured housing market in 2007. The decline in the manufactured housing market during the 2H of 2006 will inevitably impact on our North American business in 2007 despite measures, which have already been implemented, to align costs to the anticipated lower level of market activity”. “In the UK, it is anticipated that the new build housing market will remain stable and that the home improvement market will show modest growth. The Irish new build market is expected to remain strong and opportunities will continue to emerge in our other European markets”. “We expect that Carlisle Brass will continue to perform strongly due to increased market penetration and new products. Our PVC hardware businesses should benefit from the anticipated improvement in the UK home improvement market and from more low cost sourcing opportunities which will come on line, progressively, during the 2H”. “Heywood Williams is now focused on the design, development, marketing and supply of branded building product solutions, with strong and experienced management teams now in place”.