Plastic pipe supplier Wavin announced their 2007 full year results last week showing a significant increase in revenue and a very strong surge in profit over the 12-month period.
Over 2007 revenue increased 7.8% to E1.6bn. However, the company saw net profit increase by a huge 26.7%, rising to E93m.
However, it really was a year of two halves said ceo Philip Houben, with ‘exceptional growth in the first six months tempered by more modest growth in the back half of the year.
“2007 proved to be a very satisfying year for the company,” he said, “during which we set new records in revenue and profit and further strengthened our balance sheet. [However] It has also been a year of significant contrast.”
He explained that, “In the first half year we experienced exceptional growth thanks to favourable weather conditions and strong market circumstances. In the second half year we saw an uncommonly sudden and sharp drop in demand in a number of key countries. In that same period we were also confronted by a further hike in raw material costs on the back of a rapidly increasing oil price.”
However, the outlook is cautious, say Wavin, particularly in the UK and Ireland due to an uncertain economic climate and a decline in Irish construction, however, this may be countered by stronger performances in Central and Eastern Europe. Wavin’s results state “A number of key indicators in the construction sector point towards a challenging period ahead and it has yet to be seen what the full effect will be of the credit crisis on the European building markets.
“We are particularly cautious about the UK/Ireland region, given the development of the UK housing sector, the depreciation of the UK Pound and the ongoing decline of the Irish construction market. On the other hand, we see continued solid construction activity in the emerging economies of Central and Eastern Europe, where Wavin has a good position.