Home Cladding Strong results for Vivalda Group thanks to a buoyant recladding market
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Strong results for Vivalda Group thanks to a buoyant recladding market

by Jennie Ward

Following an increase in revenues, the distributor predicts a strong future for those in the sector “who invest consistently in a skilled workforce, plant and machinery, as well as customer service”, plus says “the days of cutting panels and fixing the brackets on-site are drawing to a close.”

Vivalda Group, the leading nationwide distributor of non-combustible cladding, has reported a 2.5% increase in revenues to £33.8m and a 7% uplift in pre-tax profit for the period to 31 December 2019.  

Explaining the encouraging results, the company’s group Chairman Peter Johnson said: “It is especially pleasing to see the important indicators heading in the right direction – profit calculated under EBITDA is £3.49m, 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 £1.8m in fixed assets during 2019/20, with total net assets now standing at £13m.

Peter Johnson continued: “Customer demand for our non-combustible range is very strong. And activity supported by the government’s £1.6bn 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, he 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.” 

www.vivalda.co.uk

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