Glynwed pipes up 25% rise in profit


Glynwed, the Aga cookers to pipes business, suprised the city with a 25.5 per cent profits rise despite worries about the slowdown in the UK's rate of economic recovery.

Analysts edged up their forecasts for this year as the company reported profits of pounds 84.2m and trading improvements in most key operations. Zafar Khan at Societe Generale Strauss Turnbull raised his forecast for this year by pounds 4m to pounds 102m.

About 66 per cent of Glynwed's market is in the UK, but the company said that continued growth in exports, up 35 per cent last year, would cushion it until the expected economic upturn at the end of 1996.

Bruce Ralph, Glynwed's chief executive, said the pipe business had benefited from higher spending by the water companies. The metals businesses were also doing well, with volumes running at the same level as last year, despite fears of a slowdown in industrial output. "Overall, group order intake is running at the same level as the last quarter of 1995," he said.

The group would be looking to make some non-core disposals in the construction materials division, while further bolt-on deals were also possible.

Metals reported record profits of pounds 16.8m (pounds 11.3m), while plastics' profits rose from pounds 19.9m to pounds 26.3m thanks to acquisitions. A good start to the year in the consumer products division, which makes cookers, could not be sustained because of high raw material prices and profits slipped from pounds 14m to pounds 12.1m.

Disposals had helped minimise the company's exposure to the UK economic cycle. The pounds 147.3m acquisition of Victaulic last August would also have a significant impact on reducing cyclical swings. The Victaulic purchase helped raise gearing to 40.9 per cent at end-December, but Mr Ralph said he was comfortable with the debt level and expected this to fall to around 25 per cent by the end of 1996.

Victaulic's integration into Glynwed was progressing well. It had strengthened the company's position as a world leader in water, gas, and related pipework systems.

The results include a four-month contribution from Victaulic, which made an operating profit of pounds 4.6m, before reorganisation costs of pounds 1m. Group operating profits rose 25 per cent to pounds 93m. The final dividend is 8.35p, lifting the total payout from 12.25p to 12.75p.

Alexis Sanchez has completed a £35m move to Arsenal, the club have confirmed
sportGunners complete £35m signing of Barcelona forward
Life and Style
A binge is classed as four or more alcoholic drinks for women and five or more for men, consumed over a roughly two-hour period
Detail of the dress made entirely of loom bands
Life and Style
More than half of young adults have engaged in 'unwanted but consensual sexting with a committed partner,' according to research
techResearchers recover 100s of nude photos from second-hand smartphones
ebookA unique anthology of reporting and analysis of a crucial period of history
Ray Whelan was arrested earlier this week
Arts and Entertainment
In a minor key: Keira Knightley in the lightweight 'Begin Again'
Arts and Entertainment
Celebrated children’s author Allan Ahlberg, best known for Each Peach Pear Plum
peopleIndian actress known as the 'Grand Old Lady of Bollywood' was 102
Wayne’s estate faces a claim for alleged copyright breaches
peopleJohn Wayne's heirs duke it out with university over use of the late film star's nickname
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Account Management Strategy Manager

£38000 - £42000 per annum + competitive: Real Staffing: Required skills:Previo...

Business Analyst Consultant (Financial Services)

£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...

Systems Administrator - Linux / Unix / Windows / TCP/IP / SAN

£60000 per annum: Harrington Starr: A leading provider in investment managemen...

AVS, JVS Openlink Endur Developer

£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice