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EDWARD NAYLOR United Kingdom

CEO of Naylor Industries Plc ABOUT NAYLOR INDUSTRIES PLC

Naylor Industries plc is a 4th generation family business founded in 1890; Edward Naylor has been CEO since the death of his father Allan in 1993. A double prize- winning Chartered Accountant, he had spent the previous 8 years in the City with Accountants Touche Ross (now Deloitte).

Whilst the company is now thriving, the outcome could have been very different. The business back in 1993 was loss-making and had an adversarial banking relationship. The root cause was Naylor’s dependence on the UK clay drainage market. The company had manufactured clay sewer pipes since 1890 but the £12m turnover was now in decline as a result of both the market entry of new pipe materials as well as a UK construction recession.

Since 1993, Edward and his management team have worked hard on diversification and product development. The result is a growing business with a wide range of products operating across a number of different sectors and markets.

Naylor still make clay sewer pipes, but much of the growth in the company’s Clayware business has come from product development. The company has launched pipe

systems for specialist applications: Hathernware, corrosion resistant drainage for the chemical industry, and the Denlok jacking pipe, an exceptionally strong pipe for trenchless installation. The latter has seen widespread international use in congested urban areas as it allows the possibility of installing infrastructure in the developing world without the disruption associated with digging trenches. These highly engineered systems have allowed Naylor to penetrate international markets in the Gulf, SE Asia and Australasia, a geographical footprint which served Naylor well during the recent UK construction downturn. Perhaps the most surprising development within Clayware was the launch of a decorative gardenware business,

the

Yorkshire Flowerpot Company. This business is the UK’s only volume manufacturer of terracotta pots with an important USP: all Naylor’s pots carry a lifetime frost guarantee. This has allowed the company to differentiate its high quality products from cheap imports which tend to shatter in the face of a harsh UK winter.

The result has been a growing Clayware business with a substantial export sales function: Naylor were appointed Exporter

of the Year in the 2013 Yorkshire Business Awards.

But an equally significant development was Naylor’s launch of a Plastics business in 2000. Since then, Naylor have become a leading player in the plastic pipe industry having major market shares in the surface water drainage and ducting markets, manufacturing single and twin wall corrugated and smooth wall pipe and supplying the agricultural, construction and infrastructure sectors. The main business operates out of factories in Yorkshire and Fife- the latter allowing Naylor to offer an enhanced service to the Scottish market; a specialist extrusion business with factories in Tipton and Wath works alongside this business offering bespoke tube and profile extrusions to a wide range of industries.

Naylor’s final activity is in the area of Concrete Products. The company makes a wide range of prestressed concrete lintels including high performance lintels where enhanced strength, finish or fire resistance is required.

Naylor has had an eventful 18 months. In January 2013, the business rebanked with HSBC and took the opportunity to buy back shares which had been held

Edward Naylor, CEO of Naylor Industries Plc Email: edward.naylor@naylor.co.uk I Website: www.naylor.co.uk FINANCEMONTHLY 49

by Venture Capitalist SYIF, a transaction which was awarded Deal of the Year in the South Yorkshire Corporate Finance Awards. SYIF- who made a 2 times return on their investment- had been a supportive partner of Naylor, helping finance the company’s major capital investment programme from 2008-2012. Since then, the company has made 3 bolt-on acquisitions to strengthen its smaller divisions: 2 through the Gardenware division (Limetree Ceramics and Clough Mill) and one (Amco Plastics) through the Specialist Extrusions business. The company’s turnover grew by 21% in 2013-14: 12% through organic growth and 9% through acquisition. The current year is showing further progress; Naylor are anticipating growth of 20% in 2014-15 and turnover is projected at £50m.

Private ownership has helped the business be fleet of foot and Naylor have been careful to maintain clear reporting lines, a non-bureaucratic structure and a tight-knit management team. With growth potential in all Naylor’s divisions and increasing international profile, Edward Naylor and his team are looking to the future with considerable optimism.

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