VIVALDA GROUP, the national cladding distributors, 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, Vivalda 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 said: “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.”
MSP (Scotland) acquisition
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”.