The future of UK cladding will belong to companies who invest consistently, says Group Chairman.
Vivalda Group, the leading nationwide distributor of non-combustible cladding, has reported a 2.5% increase in revenues to £33.8 million and a seven per cent uplift in pre-tax profit for the period to 31 December 2019.
Explaining the encouraging results, Group Chairman Peter Johnson said: “It is especially pleasing to see the important indicators heading in the right direction – profit calculated under EBITDA is £3.49 million, or 11% of sales.
“The future of UK cladding will belong to companies who invest consistently – in a skilled workforce, plant and machinery as well as customer service.”
Audited accounts confirm Vivalda invested £1.8 million in fixed assets during 2019/20, with total net assets now standing at £13 million.
Johnson said: “Customer demand for our non-combustible range is very strong. And activity supported by the Government’s £1.6 billion remediation programme - to replace dangerous cladding on high-rise buildings - will support demand for safe, non-flammable cladding products well into 2021.”
Noting the profound changes taking place in the sector, Johnson continued: “We’re seeing strong uptake from our customers who want the speed, reassurance and reliability of pre-prepared cladding. The days of cutting panels and fixing the brackets on-site are drawing to a close.”
Highlighting the recent acquisition of fabricator and powder-coating specialist MSP (Scotland), Johnson said: “This highly respected, long-established company with its loyal workforce, gives us access to the growing market for solid A1 fire-rated aluminium panels. MSP is already making a positive contribution to group success.”
For the reasons already stated, Johnson believes continuing market strength will boost 2020’s figures. “Clearly the Covid-19 lockdown has had an effect,” he said. “But as it recedes, its impact is starting to look more like a pause than a wobble. I pay tribute to Vivalda’s remarkable staff who came out of the blocks after lockdown and set us on course for what could well be another record year in 2020."
