NAYLOR

Excellent Construction Products • Made in the UK

Autumn 2021 Inside . . .

Our new welded duct line arrived from the US

We commissioned a new twin impression MetroPave Grass Grid tool.

…and Naylor Clayware won a Queen’s Award for International Trade

The Procter/Naylor Fencing team took delivery of a new office.

thWe were placed 39 in the Sunday Times HSBC International 200 for our export growth

..and Wombwell also took delivery of a new extrusion line

Health and SafetyNew Products

Training

PromotionsBirthdays

…and Andy Law & Roy Town celebrated 50 years of service

We welcomed our new acquisition Schauenburg (now Naylor Technical Solutions)

…and Cawthorne looked pretty in the snow

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Chief Executive’s CommentsNaylor Industries PLC

So how do the numbers look?

Sales

Operating Profit

Abnormal costs

Interest

Profit before Tax

This year Last year Last year budget actual 20/21 budget

£57.8m £51.4m £57.2m

£5.2m £5.3m £4.9m

£1.2m £1.9m £1.2m

£0.6m £0.4m £0.6m

£3.4m £3.0m £3.1m

Health & Safety matters

Mental Health has also been a key topic for us during the last year; we have six trained Mental Health First Aiders. In early 2021, we participated in “Brew Monday”- a Samaritans initiative aimed at encouraging our people to reach out to those around them who may be finding times challenging- and we will be promoting other such events during the coming year.

Environment wise, 2021 sees the start of our journey towards “Net Zero” and we will be developing our energy monitoring in order to design our Carbon Footprint Reduction Plan; in this, we will be supported by our Energy consultant Envantage.

The newly revamped EHS Committee- with members representing each of the different sites and businesses- gets together on a monthly basis to review progress against plan and discuss any new concerns. Minutes of their meetings can be found on noticeboards around the business. Additionally we have been promoting the Alert card system and increasing the awareness of this around the group; I'm delighted that we have already seen a marked increase in the number of cards raised.

KEREN MCBRATNEY

Covid measures to keep everyone safe were initially all-consuming, but as these became bedded down, we were able to work up our plans for a more structured approach to Environment, Health and Safety (EHS). Internal audits were calendarised and a timetable created to update/create Risk Assessments and Safe Systems of work with relevant Operational teams; each of the EHS team was allocated a specific area of focus.

Early 2021 saw a review of PPE (Personal Protective Equipment) suppliers and the creation of a Naylor standard for the items we use; we will be rolling this out over the coming months. I'm keen to get wide participation in the reviews of COSHH (Control of Substances Hazardous to Health), Working at Height (including Ladder Registers) and Mobile Plant which are scheduled for later in the year.

+ Cawthorne site reorganisation: we have started work here by demolishing Actons and reorganising the yard. Over the next couple of years, we're planning to extend the original Plastic Extrusion hall and build a new office. Acquisition of a CHP (Combined Heat & Power Plant) will reduce our electricity costs and eradicate the disruption associated with the all too frequent power cuts which our electricity provider seems unable to prevent.

+ Gainsborough based Schauenburg Technical Solutions which we bought in August 2021. This has brought new products - Novoform permanent formwork and new processes - pulltrusion etc into the Group.

Since then, we've all come to terms with new ways of working. Many of our office-based people have spent time video conferencing from home; in manufacturing, we've had “bubbles” and social distancing, face coverings and temperature checks. With furlough schemes and months of lockdown behind us, I suspect I am not the only one to be looking forward to what will hopefully be a period of greater normality….

Business-wise, the pandemic has been disruptive but not disastrous. Our financial year started with a bang on 1 March, but sales fell off a cliff in April and May 2020 before gradually recovering. Garden Centres- initially closed- reopened and were mobbed. Different parts of the UK had different restrictions. Over recent years, we've grown steadily; the 7% decline in 2020/21 sales is a reversal of this trend but I think it's not too bad under the circumstances; had our business been in one of the more affected sectors- travel, hospitality etc- I don't doubt that the outcome would have been much worse.

Importantly, we've also remained in forward gear. I think there is a momentum in any business- doing things- acquiring, building, commissioning- is a habit. Helpfully, despite Covid, we achieved much of what we set out to do in 2020/21. Development work continued in all areas of our business: £3.5m was spent on capital investments including:

+ Wombwell Investment Programme: over recent months, we have made significant investment across Wombwell site commissioning a new extrusion line, autocoilers, cooling and an automated ventilation duct line

+ Garforth based Procter Fencing which we bought in August 2020. Fencing is a natural fit with Lintels- most of our Concrete Lintel competitors also offer Fence Posts and we're working with the Procter team on investment plans to increase capacity and develop market share.

+ IT Investment: the upgrade of our IT infrastructure has been followed by roll out of an MRP (Materials Requirement Planning) system, which will have benefits in terms of purchasing, production management and stock control; this has gone live in Concrete, with the other businesses to follow

The last 12 months have been incredibly challenging. In the early stages of the pandemic, we had to steer a path between keeping our people safe and yet remaining open to service our customers- including those working on healthcare/essential projects.

In addition, we completed two acquisitions:

+ Lintel Extrusion Project: this was completed in late 2020, with Spanish equipment supplier Prensoland working to programme despite Covid. The new process is slicker and safer- capacity has increased but at the same time, manual handling has dramatically reduced

Last year- review of 2020/21+ Sales were affected by Covid; we were 11% off

budget, 7% down on 2019/20

+ This despite £1.3m of Procter sales

+ Profitability held up reasonably well, despite the pandemic

This year- 2021/22 Budget

+ Abnormal costs included Barugh Green commissioning/enabling works

+ Abnormal costs will include the Cawthorne site reorganisation

+ Profitability will benefit from increased sales & the new Lintel plant

+ We're aiming to grow sales by £6.4m/12%, anticipating less Covid impact & a full year of Procter (£3.1m)

Spring 2021 also saw a modification in group structure. Naylor Specialist Plastics historically traded as a division of Naylor Drainage Ltd, but as the business grew, this felt increasingly inappropriate: virtually nothing made on Tipton/Wombwell sites constitutes a “Drainage” product. With effect from 1 March, these businesses trade as Naylor Specialist Plastics Ltd, a sister company of Naylor Drainage Ltd.

I've got to the end of this and haven't even mentioned Brexit (which hasn't made importing/exporting any easier) or the challenges of sourcing plastic materials (fluctuating prices and erratic supply) but will leave those for another day…

The last 12 months have been uniquely challenging, and I would like to thank everyone- employees, suppliers, customers- for your support during a difficult period.

EDWARD NAYLOR

We see opportunities to grow both businesses to £10m+ and welcome both teams to the Naylor Group.

With best wishes

Tel: 01226 790591 Tel: 01226 794059

Clayware

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Gardenware&

We had a new range of products to launch at Glee 2020 - a virtual event.

Gardening seems all the rage- as the ever increasing demand for our Yorkshire Flowerpot range demonstrates. We have recently made a major investment in warehouse racking & layout to allow us to store, pick & pack more pots.Queen's Award

We were delighted to announce that Naylor Clayware had received a prestigious Queen’s Award for Enterprise in the 2021 International Trade category.

Now in their 55th year, Queen's Awards are awarded annually by Her Majesty the Queen & are generally regarded as the UK's most prestigious business awards.

We'd particularly like to thank our network of overseas agents & distributors who have worked tirelessly - in some cases over a period of decades - in flying the Naylor flag across the globe.

Clay sales have benefitted from competitors quoting extended lead times & higher prices for PVC sewer pipe.

We relaunched Denlok following a major exercise to increase capacity.

Clayware

…and the relaunch ended up on the cover of “Trenchless Works”

We introduced sophisticated new dosing equipment for our dolofil additive

Roy Town was promoted to Clay Production Manager

A (much delayed - due to Covid!) lunch marked the retirements of Ian Taylor, Barry Crawshaw & Charlie Chappell – combined service 88 years!!

. . . and Eddie Lomas retired after 40 years…and 60 in the clay industry

Two newly acquired mobile container ramps have provided a useful - & flexible - way of loading and unloading containers on Cawthorne site.

. . . and promptly came in handy for loading this container for Singapore.

John McClelland- ex Lintels- joined the Gardenware merchandising team

Gardenware

Tim Dolan helped a couple locate a missing engagement ring in the factory shop

Welcome to Nathan Hughes and Luke Riches who have joined the Gardenware team.

Congratulations to Kevin & Mark on completing their mobile ramp training.

Congratulations to Adam, Liz and Kevin on completing their Banksman Training

Concrete

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Cawthorne PlasticsTel: 01226 320810 (lintels/precast) 0113 286 2586 (fencing) Tel: 01226 790591

We were delighted to support the Kirklees Badger Protection Group’s work constructing a new badger sett by donating Clay (225mm) & Plastic (300mm) pipes.

Congratulations to..

Paul Moran & Cy Stead who both clocked up 25 years at Naylor Fencing & predecessor company Procter.

Ashley Thompson joined the lintel team as CAD technician.

The new Naylor Fencing website features the range of products now offered following the August 2020 acquisition of Procter Fencing.

We are planning a major increase in capacity on our Garforth (Fencing) site.

Sealwall precast liquid holding tanks are a long standing part of the Naylor Precast (formerly White's Concrete) range & recent demand has been buoyant - with the above lorry ready to go to a scheme in Somerset.

We were delighted to see Naylor MetroDrain in some fairly unusual action at Shepreth Wildlife Park- home for an Aardvark!

We particularly liked this use for large diameter MetroDrain spotted in Norfolk... it looks a lot of fun!

Our new debagging plant is a sophisticated way of automatically feeding our extrusion lines

Our Cawthorne sales office ran a “12 days of Christmas” promotion to increase our followers on social media

..and our Meet the Team social media postings introduced customer facing members of our team

Our ever increasing “Naylor Know-how” series of videos show how to handle/use our products- find us on YouTube

We're expanding our Plastic extrusion hall- and groundworks started in early 2021

Good luck to Geoff Shore who retired after 30 years at Procter

Masimba Chitakunye joined the Lintel team as Structural Engineer

Barugh Green’s developments have included a new car park and a major upgrade of the site’s cranage.

Mick Hilton Richard Kilner

Naylor Plastic Products new startersRichard KilnerMichael Hilton

Reece Hargreaves has worked with our partner Plastika Balumag AG to supply Naylor Products to Switzerland for many years.

A full load of our 1050mm MetroDrain pipes left Cawthorne ‘en-route’ to Bettingen, Switzerland to help create a ood relief system through the town.Mason Sykes, Simon Payne,

Martin Foy, Jake Buckle, Sam Hirst and Jon Commons joined Garforth production team.

Jon Commons

Scotland Specialist Plastics

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Tel: 01592 717900 Tel: 01226 444378 / 0121 522 0290

We successfully launched MetroPave, our new cost effective grass grid product north of the border.

Scottish 150mm Drain achieved BBA certification earlier this year.

Methil's purple duct was used at scenic Broaty Ferry near Dundee as part of sea front works.

Tipton has 10 extrusion lines & manufactures smooth bore Polyethylene pipe in Green, Purple, Orange & Black with push-fit couplers for various ducting applications. Most diameters & wall thicknesses are available.

Our Children’s Play Tunnels get 5 star reviews on Trustpilot. The play tunnels fully meet the requirements of European Child Safety Standard EN71.

We've expanded our range of dog agility

products; please seethe Naylor Agility Web Shop site for details.

We helped Jock Westwoodcelebrate a significant birthday

To complement our DN150-1050 Twin Wall Drain range, we now carry DN1200 and DN1500 x 3mtr spirally wound gravity pipes on both Cawthorne & Methil sites.

Simone Robinson joined as QA Manager at Wombwell

We supplied pipes and fittings to Dumbarnie Golf Links which opened this year and hosted the 2021 Women’s Scottish Open.

Specialist PlasticsOur Wombwell ventilation duct team’s latest output

is particularly eye-catching… a rainbow

coloured addition to ouragility tunnel range!

We launched our range of children's activity tunnelsNow in stock at our Methil

site are a selection of EN1401 fittings and inspection chambers. We plan to mainly sell this through our online customers but product will also be available to the Scottish Market.

Pipe in 13.5m lengths of 225mm SRD9 at our Tipton factory.

Wombwell has been busy making a wide range of cable fillers from Cat5 communication cables to deep sea umbilical shaped cable fillers in polyethylene, PVC and Polypropylene.

Bradley Johnson

Daniel Codd

Paul Cooke

New starters

Elaine Gillon(welcome back!)

Suzanne Brannan Mark McMeechan

. . . and Daniel Sherrett/Andrew Dick

Methil new starters

People Matters

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Other New Starters

Despite Covid, we have maintained training during the year including:

Training

Wombwell working at height training.

Spills response training at Cawthorne… and Garforth.

Paul Denton (Group IT support) & Steve Page (ERP/MRP) joined the IT team.

Ken Hardwick and Kulwant Singh joined the CI team.

Congratulations to Sarah Imisson who celebrated a “significant” birthday

. . . and to Emma Burkinshaw too

OBITUARY: TREVOR WARD (1937-2021)2021 marked the passing of former Management Accountant Trevor Ward who worked for Naylor from 1975 until his retirement in 2002 in a distinguished 27 years of service. Our sincere best wishes to Trevor’s family.

Congratulations to Naylor Drainage’s Roy Town and Andy Law who both clocked up 50 years service and to Naylor Concrete Products’ Ade Ibbitson who clocked up 25 years service in 2021.

Long Service

Claire Baldwin

Nathan Bramley

Jason Lomax

Christopher Waller

Christopher Chrzan

Central Services

Tomas Cawthorne

Darren Martin

Melvyn Blezzard

Ken Hardwick

Paul Webb

Alan Bell

Martin Scarfe

Rosie Webb

Kevin Brown

Alastair Staniforth

Clay, CawthorneSteven ReevesJason Atkins Terry Pilling

Ben Ford

Wesley Guy Darren Quinn

PurchasingPaul Le Gallez

PlanningNicholas Masterton

Concrete, Barugh Green

Troy Wood

Kevin Brown

Darren Martin Darren QuinClaire Baldwin

Rosie Webb Chris Waller

River-Kenny, Callum Dawson (Wombwell)

Zac, Olivia Cockayne (Garforth)

Simeon, Matthew Hobbs (Concrete/Wombwell)

Congratulations to Naylor Drainage’s Reece Hargreaves who not only passed his International Trade Operations and Procedures (ITOPS) course – he was awarded a distinction.

Martha, Alex Farrer (clay)

George, Nick Major - (accounts)

Babies

Welcome to our team's new arrivals during the year.

Abrasive wheel training at Wombwell.

Cawthorne (Fabs team) and . . .

and another thing . . .

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Thanks to the members of the Forum who this year are:

Dean Crossland (Concrete), Luke Earnshaw (Garforth Operations), Gisela Herrera (Clay Factory), Georgina Hopkinson (Garforth), Liz Hudston (Gardenware and Cawthorne Offices), Helen Jowitt (Green Team and Central Services), James Muir (Methil), John Thompsons (NSP Factory), Katie Wharton (Central Services and Tipton) and Jack Wilkinson (Plastics and Yard)

We marked National Apprentice Week with social media postings highlighting our fabulous apprentices

We continue to support Lighthouse, the Construction Industry Charity

The theme of International Women's Day 2021 was “Choose to Challenge” & we used social media to reaffirm Naylor's commitment to diversity & equality of opportunity.

Cawthorne site was pleased to welcome Holmfirth based Steve Ellis – the producer of fabulous pots.

Congratulations to Charlie Chappell who has retired from Naylor Clayware after 32 years’ service. Charlie joined our then Denby Dale works as a machine operative in February 1988 before retraining as an electrical engineer.

We were proud to sign the Armed Forces Covenant in support of the Armed Forces Community. Thank you to Claire Baldwin and Paul Denton for sharing your stories

We have recently donated some of our old IT kit to Stone 360 who will arrange for this to be recycled for worthy causes.

Peter Sherburn has been busy with yard resurfacing work at Cawthorne & Barugh Green

The Actons building, the last original building on our Cawthorne site has been demolished to make way for a new office block. The grand-daughter of Mr Acton was visiting the Factory Shop and arrived just in time to see the final stage of the demolition

Our 6 monthly communications meetings were socially distanced this year.

We donated pipe for a Rainbow Bridge to raise funds for Acorn Children's Hospice

Our Wear it Orange fundraiser raised £250 for local charities

We supported the MacMillan Coffee Morning.

..and to the Scrap Creative Reuse Arts Project.

Tipton donated off-cuts of plastic pipes to Stoke Newington Day Nursery for their Monkey Puzzle waterplay.

The “Recommend a Friend” scheme continues to reward those who help us fill vacancies with friends and family

and another thing . . .

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Our CEO Edward Naylor has been appointed President of industry body British Ceramic Confederation (BCC). BCC is the trade association representing the interests of the UK ceramics industry; its 83 member companies have 17,500 employees & account for £1.6bn in annual sales including £535m in exports.

John Grice's photo was the winner of our “Life in Lockdown” photo competition and ended up on our calendar wallchart

Our Christmas Jumper day raised £140 for local hospices

We again sponsored a goalie at Barnsley FC- Jack Walton: his team have been doing rather well

We again participated in “Cycle September”, with our 10 cyclists clocking up 1957 miles

Videoconference (VC) activity has increased exponentially over recent months & we now have VC rooms on our Cawthorne, Barugh Green, Wombwell & Tipton sites.

To increase the amount of training we can deliver, we have been developing in-house training capabilities and Alex, Nikki, Jesse & Darren from our Health & Safety team completed a 2 day Manual Handling “train the trainer” course.

We're bringing through the next generation in our Specialist Plastics business & congratulations to Liam & Aiden at Tipton as well as Ryan at Wombwell who recently completed ACAS Supervisor Training.

KNOWLEDGE

We are currently commissioning a 1.5mW Combined Heat & Power (CHP) plant which will allow us to generate our own electricity.

An article in the Sunday Times on 14/3 entitled “A Year Under Lockdown” talked about the impact of the pandemic on various businesses… & Naylor was the manufacturing sector's case study.

Ray Hadley who rejoined the company as CFO during the year

Welcome to…

Congratulations to Helen Jowitt who was promoted to Learning & Development Manager; Helen is overseeing the roll out of Naylor Knowledge, an on line training resource which went live on 4 May. The aim of Naylor Knowledge is far–reaching including health & safety training, HR elements (inductions etc) & product training. We will also be externalising some of the content, providing flexible product training to those who use & sell Naylor Products.

Ryan Senior completed his ACAS training course for Line Managers.