Company Information. Directors: C M Meade Chairman C Rudd Chief Executive D Barnett Finance Director. Secretary: D Barnett

Transcription

1

2 2017 Company Information Directors: C M Meade Chairman C Rudd Chief Executive D Barnett Finance Director Secretary: D Barnett Registered office: 49 Charles Street, Mayfair, London W1J 5EN Registered in England Number: Auditor: KPMG 8 Princes Parade, Liverpool L3 1QH Principal Bankers: HSBC Bank PLC 3 Temple Quay, Bristol BS1 6DZ

3 CHAIRMAN S STATEMENT In the year to December the Group recorded revenues of 170M, an increase on the previous year and generated an operating profit of 11.4M ( M). The year has seen the consolidation of Premium Timber Products which was acquired in June 2015 and has performed above expectations. The company is continuing to do well and steadily increasing its activity in The businesses of Meyer and Panelco have responded well to the reorganisation started some years ago and are now both sound platforms for further expansion in their respective sectors. The wider group also acquired Timbmet in January 2017 to complement our existing activities with the addition of a hardwood offering. Timbmet s UK-wide network of depots will also enhance the capability of the Group. During the year, a number of smaller branches within the Group have been disposed of and we have recently opened major storage and distribution facilities in Tilbury and Grangemouth. I would like to mention our employees who at the year-end numbered 345. It is the hard work and diligence of all our people that make the Group the success it is today. The results produced by our companies have exceeded those of our corporate and private equity owned peers and this is no accident. They are the direct result of a philosophy based not on short term profits or simply creating shareholder value, but from a policy of long-term development and investment in our businesses. I believe this not only gives our people the will to excel but also fosters confidence amongst our many customers, suppliers and other stakeholders was the best performing year in the Group s history so far as the results of our restructuring took effect and with the new capability provided by the acquisition of Timbmet, we are looking forward to another year of growth and successful trading. Our core strategy of operating existing businesses for the long term will continue alongside the long term aim of seeking out new acquisition opportunities to develop the group s potential further. Identifying good businesses which for one reason or another are underperforming and restoring them to good health has been the foundation of the Groups success and I intend to continue this formula. I am optimistic that 2017 will be yet another year of increased profits. Martyn Meade Chairman

4 THE HADLEIGH TIMBER GROUP The Hadleigh Timber Group brings together four of the UK s leading manufacturers and suppliers of timber products for the building industry and the DIY market. The individual companies each provide valuable attributes, giving the Group a unique position within the UK timber products market which enables it to provide a first class service to customers throughout the entire country, supported by the stability and expertise of the Hadleigh heritage. The Hadleigh Timber Group is now one of the UK s leading wood panel products suppliers, with a supply and delivery network which spans the entire country, from the Channel Islands to the Scottish Highlands, and sets new industry standards in fast and reliable order processing and transportation. The companies within the Group are individually known for their exceptional levels of customer service and specialist in-house production capabilities. Together they provide the UK commercial timber market with unparalleled opportunities for rapid response to customer demand and changing market conditions, particularly in the development of new products. As members of the Hadleigh Timber Group they now have access to new levels of funding and expertise. This will support research and development of new products, designs and techniques to improve productivity, meet customer demand and keep up with an industry which has seen sweeping changes in recent years. Higher, post-recession levels of demand in the DIY sector, coupled with the ongoing UK building boom, will continue to provide significant opportunities for companies able to respond and process orders quickly and cost effectively. Timber is one of the most environmentally friendly raw materials available today, and being naturally renewable, will continue to be important to the UK economy and environment. As one of the biggest names in the UK timber industry, The Hadleigh Timber Group places great emphasis on ensuring that all our packaging and manufacturing processes are as sustainable and recyclable as possible, particularly with regard to the Chain of Custody certification on FSC products. The Hadleigh Timber Group will continue to grow as and when additional opportunities to add new strengths and capabilities become available. Given that the demand for innovation and improvement in the UK timber industry shows no signs of decreasing, this looks set to be a continuous process.

5 Trade in forest products has increased significantly over the past 50 years, particularly in processed wood products such as sawn timber, pulpwood, board, and wood-based panels. Global trade in panel products has increased by 800 percent in the past three decades....demand for responsible forest products in international trade can provide enormous incentives for sustainable forest management. WWF THE HADLEIGH TIMBER GROUP MEYER TIMBER Meyer Timber is a market leader in the UK wood products sector, with a range of over 7000 wood based panel products and its own fleet of over 100 delivery vehicles. The company has a long and distinguished track record wit hin the industry, dating back to 1770 and its experience and understanding of the commercial timber market underpins the Hadleigh Timber Group s unique capabilities. PANELCO Panelco is based in Stoke on Trent and offers class-leading on-site manufacturing facilities. The company is known for its commitment to high quality timber products and exceptional customer service and provides a valuable addition to the capabilities of the Group. PREMIUM TIMBER Formed in 1988 Premium Timber Products is based in Somerset and Stoke on Trent and a market leader in the sourcing and development of many timber and PVCU products including Doors, Decking, Shelving and many other associated products. Key to the company s success is the innovation and development of new products. TIMBMET Timbmet is a leading supplier and processor of a range of hardwood and special products. The company was awarded the coveted TTJ Timber Trade Trader of the Year Award Timbmet is based in Shellingford, Oxfordshire and offers a UK wide service via its network of depots. The company was founded in 1942 and now offers a wide range of products, in-house manufacturing capabilities and its own milling facility based in Glasgow.

6 MEYER TIMBER Meyer Timber is a market leader in the UK timber industry, supplying the widest choice of wood panel products in the UK. The company can trace its origins back to 1770, a heritage of experience and expertise which, together with a strong network of global supply partners built up over the years, translates into an unrivalled reputation for market leading products and professional service. Meyer Timber has made its name by supporting customers and their business objectives. Eliminating minimum charges, guaranteeing fast delivery times and always being at the forefront of new product development all adds up to an unequalled service to small, medium and large customers throughout the industry. In recent years the company has invested in developing a network of branches in strategic locations throughout the UK, and in its own fleet of over 100 commercial vehicles to maintain and improve its well-known and trusted next-day delivery service on all ex-stock orders taken by 5pm. This makes Meyer the supplier of choice to many customers. Products The company offers over 7,000 individual products, drawn from the following categories: Melamine faced products High gloss panels Veneered panels Chipboard Perforated panels Fire protection board Hardboard OSB MDF Laminates Edging Cut & edged furniture Panels Worktops Pinboard Softwood & hardwood panels Plywood Doors and door blanks Shower panels Added Value Services An essential part of the Meyer service is the ability to add value to full-size stock products by further processing them to customers needs and exact specifications and guaranteeing fast delivery. Specialised cut-to-size machining service, from the huge in-stock range of over three hundred separate melamine decors. Machining of general board products, for applications in a variety of end uses, such as exhibitions, mobile homes, specialist flooring, gardening and construction. Meyer have invested heavily in the last 3 years in additional production facilities, allowing the company to increase capacity, without compromising on service and quality. Meyer are able to cut stock items to a customer's exact specification and have them delivered within 3 working days, thanks to its national delivery network. Innovation The Meyer policy of continuous innovation means new product ranges are regularly brought to market, enabling customers to be the first to benefit from the latest market changes. Together with our combination of great ranges and service, speedy delivery and new product development, it s easy to see why Meyer remains at the forefront of the timber industry.

7 PANELCO Panelco is based in Stoke on Trent in Staffordshire and serves the Midlands and surrounding area, bringing the Group s high standards of products and service to the heart of the UK s industrial base. Panelco has a high turnover of products, dealing with more than 500 orders a day and loading overnight in order to meet the next-day delivery guarantee. This level of service requires years of experience of fast turnaround delivery and a dedicated, professional workforce to meet the stringent logistical requirements of delivering to customers large and small at such short notice. Products All the company s products are available from stock, a major factor in its reputation for reliability and professionalism. Product ranges include: Melamine faced products High gloss panels Veneered panels Chipboard Perforated panels Fire protection board Hardboard OSB MDF Laminates Edging Cut & edged furniture panels Worktops Pinboard Softwood & hardwood Panels Plywood Doors And door blanks Shower panels Added Value Services Extensive investment in equipment and vehicles is the cornerstone of Panelco s renowned reliability and fast delivery and the company is justifiably proud of its outstanding record of next-day delivery on orders placed before 5pm, as well as offering additional added value to customers: Specialised cut-to-size machining service, available on all panel products. Machining of general board products, for use in exhibitions, mobile homes, specialist flooring, gardening and construction. Panelco have invested heavily in the last 2 years to maintain their reputation for reliable next-day delivery. Chain of Custody Certification Machining goods in-house enables Panelco to maintain fast turnaround times, but also preserves the Chain of Custody certification on FSC products. Third party suppliers may not have the necessary Chain of Custody procedures in place, which would potentially nullify the certification. Customer Support Panelco is set up to provide timber and panel product customers with very competitive prices, streamlined pricing and fast, reliable delivery, with no minimum charges. Years of experience in the UK commercial timber industry have shown that these are the priorities customers are looking for and they will continue to form the backbone of Panelco s service.

8 Premium Timber is a market leader in the sourcing and development of many timber and PVCu product ranges, including doors, windows, decking, shelving and many other associated products. PREMIUM TIMBER The company s success in the replacement doors and windows market is largely due to its policy of continuous innovation and the ongoing design and development of new products for an ever changing market. The result is an extensive and stylish range of contemporary and traditional high quality products offered to the industry at very good prices, which in turn has enabled Premium Timber to forge strong business relationships with market leading organisations such as B&Q, who currently have over 25% of the UK market. Premium Timber are now one of B&Q s leading suppliers of timber and PVCu products and the majority of their products are sold exclusively by the market leading DIY chain. The company s commitment to continuous innovation and the search for new and better products has also driven its policy of developing partnerships with some of the most technically advanced global producers in the world. Products The Premium Timber home improvement product ranges include: Exterior pre-hung timber doorsets Timber patio doorsets GRP, PVCu and composite front and rear doorsets PVCu patio doorsets Interior oak and hardwood veneer doors Interior pine doors Interior white panel doors Interior bi-fold doors Interior fire doors Internal trifold sliding room dividers Internal french doorsets and folding room dividers PVCu Windows Landscaping Shelving Furniture board Wall and ceiling solutions Added Value Services The key to Premium s success in becoming a major supplier to B&Q, the UK s largest DIY chain, lies in its ability to work with a demanding customer s quick response and delivery requirements, as well as providing a comprehensive support service: Premium Timber provide its customers with a sophisticated product ordering system, based on live, accurate stock levels. It is a flexible and scalable integrated warehouse management system that allows Premium to process hundreds of orders a day, comprising thousands of individual products. A dedicated after sales customer service team to deal with any issues that may arise. B&Q outlets use a sophisticated system of electronic ordering which utilises low stock level management for maximum cost-effectiveness, requiring a rapid and reliable supply and delivery service. Panelco are able to respond effectively to peak order demands and special requests. The company operates from two sites, in Somerset and Stoke on Trent and delivers to over 300 sites every week throughout the UK mainland, Ireland, the Highlands, Isle of Man and the Channel Islands.

9 Timbmet, based in Shellingford, Oxfordshire, was founded in 1942 and now offers a wide range of timber and panel based products, in-house manufacturing capabilities and its own milling facility in Glasgow. TIMBMET Timbmet today has one of the UK s most extensive timber and panel product ranges, complemented by a range of manufacturing services. We are dedicated to sourcing innovative timber products from around the world, driven by the demands of our customers. We are market leaders in our commitment to the sustainability and legality of our supply base and to responsible business solutions. Products The Timbmet product range includes: Timber; in a wide range of species, both in packs and loose Panel products; including the Egger and Kronospan brands Doors, worktops and flooring Cladding and decking Engineered timber Profiles and mouldings Added Value Services Timbmet s technology and expertise, combined with its extensive range of products, means the company can support most of its customers Timber and Panel requirements: Ex-stock standard mouldings Bespoke Profiles and Mouldings Bespoke Profiles and Mouldings to any design Our cross cutter, twin line and multi-rip saws allow us to provide a fast and efficient sawing service. Our multi-rip saw can cut multiple pieces in the same pass; helping us to reduce production times for our high quality cross cutting timber service. Finishing services lacquering, staining, painting, priming & sanding: Fire protection treatment Edge Banding CNC machining Cut-to-Size Laminating Protective wrapping/crating Vac Sol aqua preservation treatment Environmental commitment Timbmet is one of the leading suppliers of timber products in the UK and accepts the associated environmental responsibilities. The company is a market leader in its commitment to the sustainability and legality of its supply base and has been independently audited to ensure compliance with the European Union Timber Regulation (EUTR). Timbmet is also a member of the Timber Trade Federation (TTF) and have signed up to their Responsible Purchasing Process (RPP).

10 Left: Above: Below: The Tilbury warehouse Having most facilities in-house enables us to keep FSC chains of custody intact. The Hadleigh Timber Group is a UK market leader in timber panel products and related services. Top: Above: Right: The Meyer delivery fleet The new Meyer warehouse All our raw material timber products are from fully renewable and sustainable sources

11 CONSOLIDATED PROFIT & LOSS ACCOUNT For the year ended 31 December 2016* CONSOLIDATED BALANCE SHEET At 31 December December Turnover 169,360 Cost of sales (131,224) Gross profit 38,136 Distribution costs (15,358) Administrative expenses (11,377) Group operating profit 11,401 Profit/(loss) on sale of fixed assets 18 Costs of fundamental reorganisation (559) 31 December Fixed assets Tangible assets 6,081 6,081 Current assets Stocks 18,709 Debtors 31,316 Cash at bank and in hand 7,120 57,145 Creditors: amounts falling due within one year (48,612) Profit/(loss) on ordinary activities 10,860 before interest and taxation Other interest receivable and similar income - Interest payable and similar charges (758) Other finance income/(costs) 244 Profit/(loss) on ordinary activities before taxation 10,346 Tax on profit on ordinary activities (2,147) Profit for the financial year 8,199 *Excludes Timbmet figures as the business was acquired after the year end Net current assets 8,533 Total assets less current liabilities 14,614 Creditors: amounts falling due after one year (1,981) Provisions for liabilities (1,593) Net assets excluding pension asset 11,040 Pension asset 1,458 Net assets 12,498 Capital and reserves Called up share capital 250 Share premium account 4,446 Profit and loss reserve 7,802 Total shareholders funds 12,498

12 Industrial timber use has provided revenue from timber that has helped make timber supply and demand more sustainable in the leading timber producing regions of the world......forests as a whole provide vital ecosystem services, and act as important atmospheric carbon sinks. U.S. Forest Service THE HADLEIGH TIMBER GROUP PLC HADLEIGH TIMBER GROUP Group Head Office Hadleigh House, 49 Charles Street, Mayfair, London, W1J 5EN Tel: MEYER TIMBER Head office Meyer House, Hadleigh Park, Grindley Lane, Blythe Bridge, Stoke on Trent, ST11 9LW Tel: Fax: PREMIUM TIMBER Premium Timber Products Ltd Premium Way, Notting Hill Way, Weare, Axbridge BS26 2JU Tel: Fax: PANELCO Panelco Sales & Headquarters Hadleigh Park, Grindley Lane, Blythe Bridge, STOKE ON TRENT, ST11 9LW Tel: Fax: TIMBMET Timbmet Group Limited Shellingford Distribution Centre, White Horse Park, Ware Road Stanford in the Vale, Oxon, SN7 8NY Tel: Fax:

13 HADLEIGH TIMBER GROUP PLC Hadleigh House, 49 Charles Street, Mayfair, London W1J 5EN