Heywood Williams announces £3.4m interim pre-tax profit

Heywood Williams, the manufacturer of building products, has announced an interim pre-tax profit of £3.4m.

There was a pre-tax loss of £18m in the comparable period last year as a result of a major £22m hit in now-discontinued businesses: Plastic Systems and the group’s former operations in both Poland and Slovakia.

Haywood has two remaining divisions: LaSalle Bristol operates in North America while the Hardware Division is based in the UK and Europe.

The group’s turnover (six months to 2 July) was 9% higher at £130m, with LaSalle accounting for £90m of this total.

Hardware’s £40m of turnover produced an operating profit of £1.3m. It is a manufacturer of window and doors, selling under the Mila brand.

Robert Barr, chief executive, said: “The UK hardware market declined 5%-10% during the period due to suppressed consumer demand. In addition, commodity-based raw material price increases were significant.”

The cost of both zinc and copper is now double the price of 12 months ago.

Barr added: “Window Ware and Mila UK have both won significant new accounts, including a major new-build fabricator. In addition, some improvement in market conditions has been seen in July and August.”

The development of the Garant range of hardware for timber and timber/aluminium windows is at its final stages of commercialisation.

A week ago, Heywood announced the £48m acquisition of Carlisle Brass, the manufacturer of door handles, hinges and lighting fittings.

Heywood’s defined benefit pension scheme, when evaluated to IAS19, the new accounting standard, has a deficit of £21m.