Vivalda Group plc has increased its annual turnover from £31m to £34m over the past year, despite strong headwinds of economic uncertainty. The facades specialist’s latest financial results show how the embattled architectural cladding market still presents opportunities for fully tested products as Vivalda has seen an increase in sales of 6% in the last 12 months. Over that same period, the group, which includes the Pura Facades brand, has seen its net assets grow by 16% to £11m.
The architectural panel market leader is following the adage of ‘doing well by doing good’ and now has cash reserves of £2.8m as the business continues to build on its market-leading position in A1 & A2 non-combustible cladding panels. The debt-free specialist cladding processor said the long-held policy of supplying only non-combustible, high grade products to high rise projects had paid-off last year with a 13% increase in pre-tax profits to £2.9m.
Vivalda Group Chairman Peter Johnson said: “Our approach of the last few years to focus on non-combustible cladding is showing strong results with good earnings growth, increased year-on-year comparatives, a solid cash position and a robust, sustainable forward order book.
“And we’re doing this at a time when the pipeline of work available has narrowed owing to landlords seeking precise solutions post-Grenfell, although it’s true to say that the flight to quality has benefitted Vivalda Group. Flying the flag for uncompromising cladding safety will remain Vivalda Group’s key focus for the foreseeable future.”
He said Vivalda Group’s position on new cladding regulations would be a key driver for its business, opening the door to an estimated £2bn market in refurbishment of unsafe high-rise buildings. He continued: “Presently, the majority of orders continue to come from the new build market, but orders are starting to increase for our A1 and A2 rated cladding panels as replacements for inferior products scheduled for removal on hundreds of high-rises nationwide.”
Johnson said the group was investing in its technical offer to architects and specifiers who understandably want every type of assurance on the suitability of our premium, non-combustible cladding range. “We now have that information on our website, leading the market to the safest products and, most importantly of all, these solutions offer hundreds of thousands of residents of these buildings the peace of mind to which they are entitled.”