GLYNWED INTERNATIONAL presented an upbeat set of interim results as the benefits of focusing on pipe systems and food service began to flow.
The Midlands-based engineering group increased turnover by 12% to £476m, with Ipex, the US pipes business it acquired in 1999, turning in a strong performance.
Chief executive Tony Wilson said Glynwed’s decision to dispose of its metal interests and focus on its core business areas had been justified. Trading profits on continuing businesses before reorganisation costs were £52m, 70% up on the same period last year.
Pre-tax profit was almost half of last year’s figure only because the 1999 interims included a £35m one-off windfall from the sale of the metals business.
Glynwed said North American demand for municipal and industrial pipe systems and telecom cable protection had been buoyant since it acquired Ipex.
In Europe, Glynwed has brought all its pipe systems manufacturing activities together in a single organisation. Pipe business now represents 80% of the group’s total activities. Turnover of its pipe systems division in the first half grew by almost half to £381m, mainly thanks to Ipex.
Glynwed Foodservice Equipment enjoyed a solid period of trading. The contract to supply equipment to the athletes’ village at the Olympic Games, secured against international competition, was a particular highlight.
In the future, Glynwed predicts further growth in the European and US markets. It is also keen to develop e-business, and has adopted the PTC Windchill suite of solutions in a pilot scheme involving £100m of internal transactions within its pipe systems division