Doncaster-based manufacturing company Pegler Yorkshire has announced an impressive increase in its pre-tax operating profits.
The firm’s 2012 financial results revealed a six per cent increase to £7 million - driven mainly by a 25 per cent increase in export sales to the Middle East.
Finance director Ian Howarth said: “Against a challenging year our business is moving in-line with expectations.
“Sales into the Middle East have been going from strength to strength whilst austerity measures both in the UK and Euro Zone has translated into decline in the construction market.”
He added: “We have continued our investment programme which has seen an injection of £7 million in machinery and equipment at both our Yorkshire manufacturing sites.
“Furthermore, efficiency measures within distribution and general operations following prior years’ investments have driven our cost base down by 7.9 per cent.”
Pegler Yorkshire is a manufacturer of high quality, commercial and residential plumbing and heating products. Its head office is based at Belmont Works in St Catherine’s Drive, Balby, and it also has offices in Leeds and Manvers.
Despite its success in the Middle East, the UK market remains challenging and it has been working hard to maintain margins through improving efficiency.
It has also been developing its innovative technology products, such as ‘push-it’ and ‘press it’ pipe joints to compensate for a loss in demand for more traditional products.
In addition, it is focussing on providing a complete package of systems, rather than individual components, leveraging the Pegler Yorkshire organisation’s combined expertise.
Phill Jackson, marketing and business development director, said: “Recent reports have highlighted a rise in UK manufacturing output over the last few months which is a good indicator for sustained recovery in our sector.
“Yet, it would be difficult for this to continue if UK manufacturers don’t continue to push the boundaries of innovation, target additional markets and ultimately invest in their own business.”
Pegler Yorkshire invests heavily in its manufacturing facilities at an average rate of £3.5 million per year. These developments, involving significant capital equipment investment, have resulted in major customer benefits including shorter lead times, improved response and reduced costs. Developments are ongoing.