NAYLOR

Excellent Construction Products • Made in the UK

Autumn 2016 Inside this issue:

P4 Colombo Conference P6 Barugh Green grand openingP10 Employee ForumP10 Ray RetiresP12 Lord Lieutentant visits

Ruban d'HonneurWe were finalists in the European Business Awards – down to the last 110 of the 32000 which entered. We didn't win our Growth Strategy Category outright but brought back a prestigious Ruban d'Honneur which now sits proudly in the Wombwell reception.

David CelebratesOur non-exec Chairman David Fletcher was presented with a plate to celebrate his 70th birthday.

Charity Golf DayOur charity golf day raised £2700 for Construction Industry Charity The Lighthouse Club. Thanks to the suppliers and friends who supported it.

On the Move……The last Naylor Newsbeat reported on our acquisition of the new 4 acre site at Wombwell – the former distribution warehouse of electrical retailers Maplin. We have spent much of the last year converting this into premises suitable for manufacturing and the site now houses:

· Our former Wath Specialist Plastics business (was Amco)

· Our injection moulding/fabrications business (formerly at Cawthorne)

· Our Head Office function

Our Wombwell manufacturing facility has space and power to grow; room freed up at Cawthorne will accommodate our new large diameter line.

Whites ConcreteWe acquired the precast concrete business of Whites Concrete in early May. The Whites range includes retaining walls, tanks and prestressed panels.

Naylor Strike Gold !!Naylor has been an accredited Investor in People since the early days of the standard and recent years have seen us reach the higher levels of certification - Bronze and latterly Silver.

Our 2016 assessment has just taken place and we are thrilled to have become one of the very few businesses to have attained Gold. There are 11500 accredited Investors in People - however only 1700 companies hold the Gold Standard.

Large Diameter PlasticsOur new large diameter Twin Wall Drain line will allow us to manufacture larger sizes – DN750, 900, 1050 – and will be delivered at the end of the year.

NAYLOR INDUSTRIES PLC

Chief Executive’s Comments

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At the risk of sounding like a scratched record…the last 12 months have been really eventful!

2015/16 followed a period of significant growth; the 3 previous financial years saw the business expand dramatically- from £35m to £47m turnover. You might therefore expect me to be rather disappointed with just 5% growth in 2015/16- and indeed there were a few things going against us during the year- a lack of large export projects and difficult Scottish market conditions to mention but two. But I think that any business which does go through a growth spurt needs a period to regroup and allow the business infrastructure to catch up; recent months therefore have seen us expend much of our energy in putting the foundations in place for the next phase of growth.

People and systems are an important part of this, but the main financial investment has been in premises. Three of our businesses in particular were struggling for physical space:

Our Concrete business had happily occupied a 3 acre leasehold site at Ossett for 25 years, but the site needed investment and was largely full. We increasingly realised that we had outgrown the site and were lucky to identify and acquire a 9 acre former Charcon Precast Concrete site down the road at Barugh Green; the move in mid-2015 went exceptionally well. As a result, we have not only been able to improve our existing activities, with better mixing and cranage, but the additional space has allowed us to develop and launch new products and make the bolt-on acquisition of Whites Concrete.

Our Wath Specialist Plastics (formerly Amco) business had similar issues- it had occupied a leasehold site since well before its acquisition by Naylor. The site was full and the site layout- on a slope with limited external space- again acted as a growth constraint. Again, we were lucky to find suitable premises locally- the former Maplin distribution site at Valley Road, Wombwell. These premises needed more work- converting a warehouse into a factory had planning and power issues to mention but two- but the move was also well handled and the new premises provide space for future growth as well as a better working environment.

Finally, growth in our Cawthorne Plastic extrusion

• 2015/16 Sales were a record for the Naylor Group, even though we fell 7% (£3.5m) short of budget

• Turnover increased £2.3m year on year- from £46.7m to £49.0m- growth of 5%:

• £1.3m of this growth was due to the new Environmental & Polymers businesses

• Tipton & Wath grew a combined £1m

• Clay had a mixed year, with Domestic sales buoyant but exports quiet

• Gardenware grew £0.3m but

• Band Seal & Scotland were down £0.3m & £0.4m respectively

• Lintels trading was flat year on year despite the potential disruption of the Barugh Green move

• Operating Profit of £3.2m was £0.2m up on last year but £1.1m down on budget

• The £2.2m of abnormal costs included £0.8m of Barugh Green relocation costs & £1.4m of Wombwell commissioning costs

• Group stocks increased from £5.9m to £6.6m; Gardenware stocks were up £0.3m & Clayware £0.4m

business had two restrictions- lack of space and limited power. Relocating the injection moulding and fabrications function to Wombwell has freed up both space and power and the next project- now underway- is to use this to build a second extrusion hall on Cawthorne site. This will act as our large diameter plant, accommodating the existing Drain line as well as a new larger line which will manufacture DN750, 900 and 1050- on order and under construction in Germany as we speak; it will be delivered towards the end of the year.

In the middle of all this, we have moved our Head Office function to Wombwell. In differently structured groups, this might be a really big deal but we aren't very centrist as a business- we try and give our Divisional MDs as much autonomy as possible- and our Head Office team is just 19 in number, which I think is fairly modest for a £50m group. At the same time, it would be stupid to fully decentralise - our divisional MDs clearly benefit from not having to recruit their own HR and IT functions for example- and I think we have largely got the balance right here. Personally, I've not really noticed much difference to the way I operate - I keep a desk at Cawthorne and the Cawthorne teams see me- as before- several times each week (whether this is a good thing or a bad thing is open to debate!!).

I am conscious that all this activity has had challenges. I'm delighted that the disruption to our customers has been minimised due to good communication and good planning - stock building before moving equipment etc. I'd like to thank the project teams and all those who have been involved in the various moves for their co-operation and our suppliers and sub-contractors for their efforts on our behalf.

It would be wrong to end this piece without a cautionary note regarding the wider political and economic outlook, particularly the outcome of the recent Brexit referendum. We try to be apolitical as an

organisation and avoided the temptation to campaign for either side. It is however no great secret that we felt we would have been best served by a “Remain” vote, which would have preserved the status quo. Over recent years, we have benefitted greatly from a stable economic and political background; this has facilitated long-term investment decisions and allowed us to prosper as a group. The “Leave” outcome will inevitably produce a most unwelcome short term turbulence which is detrimental to UK construction and we will be watching the impact carefully, as any recessionary downturn may necessitate a review of our cost base and investment plans.

The Naylor group has had a most eventful 2015/16 and I would like to thank our employees for their hard work and our customers, suppliers and other partners for their continuing support.

EDWARD NAYLOR

• The interest bill moved up a tick as a result of the commercial mortgages on Barugh Green & Wombwell sites.

• We are aiming to achieve a further £5.0m of Sales growth. Of this:

• Clay anticipates growth of £1.5m, with more domestic sales resource & better exports

• Cawthorne Plastics & Environmental anticipate growth of £2.3m, with the new HP1200 line & Environmental ranges driving sales

• Concrete anticipates £0.6m of growth due to new product launches; the Whites acquisition should boost this further

• Gardenware & Scotland anticipate growth of £0.3m & £0.5m respectively

• Specialist Plastics anticipate a combined fall of £0.4m, with reduced Oil & Gas related extrusion business being offset by Polymers growth

• Abnormal costs are anticipated in respect of the Whites acquisition (£0.5m), Wombwell (£0.7m) & the new HP1200 line (£1.2m)

This year budget Last year actual 15/16 Last year budget

Sales

Operating Profit

Abnormal costs

Interest

Profit before Tax

£54.0m £49.0m £52.5m

£3.2m £3.2m £4.3m

(£2.4m) (£2.2m) (£1.6m)

(£0.4m) (£0.6m) (£0.5m)

£0.4m £0.4m £2.2m

SO HOW DO THE NUMBERS LOOK?

Last year- review of 2015/16

This year- 2016/17 BudgetSecretary of State MeetingThe British Ceramic Confederation is the trade association for ceramic manufacturers. 27 April saw a meeting at Westminster between BCC representatives and the Secretary of State for Business, Innovation and Skills, Sajid Javid. The main topic was energy policy and Edward together with Ibstock CEO Wayne Sheppard gave their views from a manufacturer's perspective.

A Busy 12 Months for the Green TeamThe Green Team have continued to work on various projects including recycling over 298 tonnes of waste at Cawthorne.

The end of March saw commissioning of major solar panel installations on our Barugh Green and Cawthorne sites. These will generate power for our manufacturing operations as well as exporting to the National Grid. Total investment was £328k and 1364 panels were fitted – generating an estimated annual 282,000kWh. Over their service

life, the panels will generate 5 million kWh of electrical energy, saving 2500 tonnes of CO2.

Our bore hole has produced a saving of £21500 since installation.

Video killed the radio starNaylor is progressively using video format to convey messages to customers and prospective new talent. Using engaging formats in both professional as well as in-house creative productions, Naylor is reaching new targets in the UK and overseas and building its brand identity. Fortunately, Team Naylor are fabulously photogenic and articulate!

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About the time of our last Newsletter, Forbes published a trends report, which predicted that in 2016, businesses of our size would be investing in the long term with new equipment, premises and employees, in wider inventories, new funding relationships and greater use of cloud based data. Well, it's only the end of summer and we've already done all that! So what’s next?

Here are my predictions for the next 12 months…

COO’s Views

Intelligent dataNaylor is forging ahead with digital factory capability at its new premises as well as retrospective integration into existing facilities. The aim is to inform planning, processing, quality and performance with real time data in ways Naylor could only have imagined over its 126 year history.

Mobile friendly Naylor's website will not only be more mobile friendly but it will develop its communication methods to bring fast page load time (Accelerated Mobile Pages) to customers, employees and future stakeholders. The use of mobile devices will extend and become the key touch point for many of our marketing and sales activities.

Safe handsThis year's SHEE Day (Safety, Health, Energy and Environment) will broaden awareness and encourage engagement through a series of training workshops and interactive activities. Naylor is shifting its Health and Safety focus from group enforcement to local accountability - with training and support, audit and governance on hand from its Head Office.

Human connectionNaylor will embrace the increasingly digitised world with technology and at the same time continue to offer a genuine alternative and escape from digitisation by establishing and maintaining excellent human connections, presence and relationships.

The rise of the MillennialsNaylor's workforce is increasingly Millennial with strengthening Apprenticeship and Management Traineeships bringing vital skills and new perspectives to the business. Naylor is already engaged with Generation Z through primary and secondary school programmes designed to engage young minds in Science, Technology, Engineering and Maths projects leading to interest in careers within Manufacturing and Engineering.

Value driven philosophyThe Company's values have recently been captured in its overarching objective “to be a modern, profitable and growing business; rewarding to work with and for”. These values sit happily alongside Naylor's long history and its optimism for the future. Its increasingly value driven philosophy has led to a profit share reward basis for all its employees and will lead to greater employee ownership of the Naylor brand.

ProductivityOf all the Key Performance Indicators, Productivity will become an increasingly important measure of success. Challenges brought about by new competition, overseas imports, increasing cost of energy, raw materials and labour necessitate a focus on the output achieved from all key resources.

Faster product developmentNever short of ideas, Naylor's growing use of new technology and prototyping methods is opening up opportunities to accelerate the idea to production cycle. Coupled with new relationships with several Universities, Laboratories and amazingly advanced local suppliers, Naylor is poised to bring new product to market at a pace befitting of its idea generation.

Bridie on the Radio - Radio 4's “The Bottom Line” is a business programme hosted by Evan Davis; the edition on 23 June featured Bridie talking about negotiation in business. She was joined on a panel by an expert in hostage negotiation!!

So that's my year ahead – after all this is a newsletter not a snoozeletter!Bridie Warner-Adsetts

International Festival of BusinessBridie and Edward supported the International Festival of Business, the world's largest business gathering in Liverpool, sitting on panels discussing business issues. Elliot Goodman meanwhile represented the company on the Naylor stand in the HSBC pavilion.

Naylor was a finalist in the Manufacturing Excellence (MX) Awards in the category “Manufacturing in Action”.

Health & SafetyThe last 12 months have been particularly busy with regards to Health and Safety improvements at Naylor.

Health & Safety training remains a big area of investment with some 30 individuals completing IOSH Managing Safely training across the group. I myself have completed NEBOSH training.

There has also been ongoing training for Fire Marshals, First Aiders and Forklift drivers.

I’ve delivered internal training on risk assessments and control of contractors.

I have been particularly grateful for those individuals around the group who have helped drive Health & Safety improvements and culture on every site.

Each site is represented by one or more Representatives of Employee Safety (ROES). They regularly sit on the Health and Safety Committee and liaise with our employees raising Health and Safety concerns and having an active involvement in implementing improvements.

We have been proactively delivering Toolbox talks each month to all employees, which have covered a wide variety of Health and Safety topics.

Risk assessment remains a major theme. The Clayware engineering team have been instrumental in developing and introducing a new “Take 2 minutes – STOP and THINK” risk assessment checklist, which aims to be a user friendly and practical way of identifying and addressing any significant risks before tasks commence.

Finally, I look forward to seeing an enthusiastic group of people from around the group at Wombwell on 22 September at our 2016 SHEE day (Safety, Health, Environment and Energy Day). Team Naylor members should speak with their manager, safety rep or forum rep if they would like to attend.

Dan Wain

ClaywareClayware

4 Tel: 01226 790591 sales@naylor.co.uk

Joe WestwoodAde Dickinson Stuart Steel Ian Lyman

Ian Rushton

Dean Westwood

Emma Stewart

Martin Anderson

Nick Priest Richard Stephenson

Harry Crawford Matthew Allsopp

Shaun Barrett

Douglas Ennis Josh Dunning

Reece Hargeaves Neil Ramsden Timothy Butcher

Lloyd Kelly

Who's in charge?Ade Dickinson (Divisional MD), aided and abetted by Lloyd Kelly and Stuart Steel (UK/Export/Emerging Sales), Ian Lyman (Production), Joe Westwood (Engineering)

What's our mission?To grow by developing international sales of Hathernware, Denlok and traditional clayware to achieve a sustainably profitable business.

What are our objectives for the year?• Achieve our growth targets for sales - UK and

export• Increase profit by improving manufacturing reliability• Continue investment in plant and machinery

How are we doing?There was a large amount of major engineering work during the year including replacement of the fittings kiln burners and major overhauls of number 4 and 6 extruders as well as work to increase Hathernware capacity.Investment in capital and refurbishment projects is having a major beneficial impact on productionDomestic sales are benefiting from a more focussed approach and we're monitoring major opportunities overseas – particularly for Denlok and Hathernware. We’re planning the launch of a new large diameter (DN 300 - 500) range Densleeve Plus for open cut and light duty trenchless installations.

Any new faces?Reece Hargreaves and Emma Stevens – Internal SalesDouglas Ennis, Anthony Chapman, Harry Crawford, Dean Westwood, Ian Rushton, Martin Anderson, Joshua Dunning and Anthony Hawkins – EngineeringNick Priest – External SalesRichard Stephenson – StoresMartin Scarfe, Neil Ramsden,Timothy Butcher, Shaun Barrett andMatthew Allsopp – Production

Colombo ConferenceNaylor have been supplying clay pipes to Sri Lanka (Ceylon) since 1910! With the country again planning considerable investment in sewerage infrastructure, Naylor agent Access International felt that the time was right to hold a seminar in Colombo to inform engineers and contractors of the virtues of Naylor Denlok jacking pipe.

Denlok updatesHadrian's Wall was built by the Roman army to mark the boundaries of the Roman Empire. The area around Hadrian's Wall is full of items of archaeological interest – and not surprising Naylor Denlok jacking pipe was an obvious choice for a recent sewerage scheme, allowing pipeline installation with minimal environmental impact.

Better BarnsleyWhilst we welcome orders from sites near and far, we were particularly pleased to supply clayware to the Better Barnsley project, which will see the transformation of the heart of Barnsley town centre.

Polish VisitorsStuart Steel hosted visits from our Polish distributors as well as Polish Companies Koncept, Prozap Enegoprojekt, Prochem and Warszawa SA; there is considerable interest in Thermachem in Poland

Naylor customer Terra Solutions Ltd won a Highly Commended Award in the UKSTT 2015 awards for their installation of 37m of 300mm Denlok on Crossrail's Farringdon Eastern Tunnel.

Overseas ShowsNaylor supported the Dutch Society for trenchless technology conference and exhibition with a stand and conference paper.

We also exhibited our Hathernware chemical drainage and industrial ceramic ranges at the Achema fair in Frankfurt.

Ade and Stuart Steel hosted the visit of Japanese industrial ceramic customer Matsui.

During the year we also exhibited at The Malaysian National Sewerage Conference, IFAT Munich, No-Dig Poland and No-Dig Istanbul.

Simon Marsh and Edward Naylor gave a paper on Denlok at both the Malaysian and Istanbul conferences and our affiliate Krzysztof at the Polish show in Krakow.

New arrivalCongratulations to Harry Crawford (Clayware Engineering) on thebirth of his son Oliver.

Tel: 01226 794059 info@naylor.co.uk 5

Who's in charge?Dave Cartwright (Divisional MD) aided and abetted by Liz Hudston (Operations Manager).

What's our mission?To be the UK's number 1 supplier of premium planters.

What are our objectives for the year?• Increase profitability

• Develop a range of planters for the US market

• Successfully introduce new planters at Glee 2016

Dave Cartwright

Peter Griffith

Liz Hudston

John Woollin

The US market remains of interest. Dave Cartwright attended a Garden Exhibition in Atlanta in support of our new US Distributor. Our first container was shipped without breakage and successfully sold out.

Our new Lime Tree range was well received at its launch at Glee 2015.

“Love Your Garden” is an ITV programme presented by Alan Titchmarsh. The edition broadcast on 7 July features some lovely pots……..made in Yorkshire.

Mick Shaw retired on 4 December 2015 but duly returned in Spring 2016!

We delivered a nice order for 20 large flowerpots from Buckingham Palace and Clarence House.

Malaysian VisitorsOur Malaysian Clough Mill planter supplier W S Pottery is based in Ipoh. In Autumn 2015, major shareholder Hasrul visited Cawthorne and our Glee stand with his family.

Functional TerracottaItalian manufacturer Euganea Vasi continue to be a reliable supplier of functional terracotta.

Yorkshire Flowerpots at ChelseaYorkshire Flowerpots were again on view at the 2016 Chelsea Flowershow with various stands and showgardens featuring our pots.

GardenwareGardenware

How are we doing?• The UK market has been turbulent

• We're building closer links with Cawthorne production and hoping to increase output and ranges

• We're working well with our overseas partners

Any new faces?Peter Griffith - merchandiser East Anglia/South East

John Woollin - yard manager

Glee-fullSeptember 2015 again saw the Naylor Gardenware team exhibiting a range of flowerpots at the NEC Birmingham. Glee 2016 is September 12-14 - See you there?

Barugh Green – Grand OpeningFor 35 years, our concrete division operated from a 3 acre leasehold site at Ossett near Wakefield but space restrictions were an increasing issue. Our new 9 acre freehold site at Barugh Green has bags of space to accommodate future growth. Local MP Dan Jarvis presided over the opening ceremony which took place on Friday 4 September. The event had a dual purpose, with Naylor Concrete also celebrating 50 years since its formation.

Concrete

Tel: 01226 320810 concrete@naylor.co.uk

Concrete

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Who's in charge?Helen MacIntosh (Divisional MD) aided and abetted by Ian Booth (Site Operations), Ady Ibbitson (Production) and Paul Wood (Sales).

What's our mission?To double our turnover by 2020. We will do this by being the UK's number one trusted brand for specialist concrete lintels and retaining wall structures.

What are our objectives for the year?• Create specifications and grow sales of specialist

concrete lintels by technical marketing.

• Reduce cost of production in order to maintain margin

• Successfully introduce EasiWall Contour* Blocks

• Integrate and grow the Whites Concrete business.

How are we doing?• Our move to Barugh Green has gone well: the next

area of concentration is productivity

• The integration of Whites Concrete is underway

• New product development is ongoing.

Any new faces?Stephen Casey, Katie Palmer and Tracy Taylor – the Whites commercial team

Jesse Taylor – apprentice

Ben Summers, Jordan Baxter and Joshua Findley – production

Karen Wood – administration

Ian Booth – site operations manager

Helen MacIntosh Paul WoodAdy IbbitsonIan Booth

Jesse Taylor

Karen Wood

Tracy Taylor Stephen Casey

Katie PalmerJoshua Findlay

Ben Summers Jordan Baxter

Chelsea Brook

Driffield ShowWe introduced our EasiWall product and the Whites range

to the local agricultural market at the 140th Driffield Show, the UK's largest one day agricultural show.

Congratulations to our Barugh Green first aiders on receiving their awards

Awards

We exhibited at Cereals 2016Cereals is the leading technical event for arable farmers; Cereals 2016 was held in Hertfordshire on 15 and 16 June. We exhibited a range of plastic and concrete products. Our stand, which was well attended, was the perfect place to launch our new retaining wall system – EasiWall Contour*

Congratulations to Stuart Cottam who celebrated 25 years' service at Naylor Concrete.

New and Improved Ultra-Fire LintelsOur complete Ultra-Fire range, including Ultra-Fire 100-6 and 100-9 lintels are now available with 4 hours' fire resistance to cover all industry requirements.

In December 2015 Barugh Green commissioned a new 40 metre ER1 economy lintel bed.The new bed allows us to manufacture an additional 5000 metres of lintels every week.

We acquired the Whites business which makes tanks, retaining walls and pre-stressed panels from Dewsbury based flooring manufacturer Longley Concrete Ltd at the start of May.

Welcome to the commercial team of Whites Concrete: Stephen Casey, Tracy Taylor and Katie Palmer and thanks to Longley's Michael Wright and Mark Dunn for their help with the transition.

Congratulations to Chelsea Brook on receiving her OCR Level Business Administration, Intermediate level Apprenticeship in Business Administration and City and Guild Functional skills in Maths and ICT.

Whites Acquisition

* Patent Pending No. GB1505514.8

Cawthorne Plastics

Tel: 01226 790591 sales@naylor.co.uk

Cawthorne Plastics

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Who's in charge?Rob Hughes (Divisional MD) aided and abetted by Kevin Naden (Production), Stuart Jones and Mark Rowden (Sales) and Graham Martin-Loat (Environmental).

What's our mission?To consolidate our leading market position in drainage and ducting and to achieve growth by range extensions and the launch of innovative complementary products.

What are our objectives for the year?• Reduce distribution costs• Launch product into the rail market• Continue to improve manufacturing efficiencies• Reduce cost of production in order to maintain

margin• Successfully install the new HP1200 line on time,

on budget.

How are we doing?• Work to accommodate the large diameter line is

underway• We're making progress with our environmental

offering• New product development work is ongoing

Any new faces?Robert Chappell, Adam Exley, David Jasiok, John Knight, Phillip Lawson and Robert Evans – productionMark Rowden – sales and business developmentJulie Lester – external salesDanny Kelly – new product developmentDean Pearce – engineerLee Newton – yard

Kevin Naden

Graham Martin-LoatRob Hughes Stuart Jones

Robert Chappell

Robert Evans

Danny Kelly

Mark Rowden

John Knight

Adam Exley Dean Pearce

Julie Lester

Dave Jasiok Phillip Lawson

Cawthorne plastics was busy in Autumn 2015 with its own civils project, with subcontractor Killingley undertaking work to widen the roadway to the side of the extrusion hall and stabilise the related embankment. The project was completed with minimal disruption and in record time and has significantly improved access.

Rallycross Club moveWakefield City Rallycross Club (a member of the British Radio Car Association) relocated during the year – with 800m of 100mm Naylor twinwall pipe being used to construct the edging of the track.

A major project at Newcastle racecourse was completed using Naylor Twin Wall Drain.

LDCA visit CawthorneWe were pleased to host the pre-Christmas meeting of the Land Drainage Contractors Association, and took the opportunity to introduce our environmental product range.

SaltexWe exhibited a range of Naylor environmental and plastic products at Saltex, the UK's biggest event for those involved in grounds care and sports amenities, estates and green space management.

Potato Industry EventNaylor supply crop conditioners into the agricultural industry and we launched a new product at the Potato Industry Event BP2015 specifically aimed at potato growers. This addresses the challenges of temperature control, ventilation, disease protection and tuber bruising.

EcobuildWe also exhibited at Ecobuild – the leading UK exhibition/conference for sustainable construction – at London's Excel; it was attended by over 40,000 people.

Tooling to make 750, 900 and 1050 Twin Wall Drain is underway and trialling work in Germany allowed our yard team to have a sneak preview of the 750.

During the year we commissioned a new 500t Borche injection moulding machine which allows us to produce larger items as well as having enhanced energy efficiency. This has since been moved to Wombwell.

Meanwhile work is underway at Cawthorne to accommodate the new line which arrives in December.

Newcastle Races

New Moulder and Line

Scotland

Tel: 01592 717900 scotland@naylor.co.uk

Scotland

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Who's in charge?Jim Crawford (Divisional MD) aided and abetted by Don Whyatt (Site Operations), Mike Fairgrieve (Production), Graeme Seath and Jo McCool (Sales)

What's our mission?To be customers' supplier of choice in Scotland and Ireland and to embrace the culture of “Team Naylor”

What are our objectives for the year?• To launch and sell 150, 225, 300mm N-Drain made

in Scotland

• Improve manufacturing reliability and demand for own made products

• Establish fabrication capability and improve Band-Seal operation

• Reduce transport charges and reduce transport as a % of sales

How are we doing?• We're slowly but surely becoming more self-

sufficient north of the border.

• Our new drain line has proved challenging but is now up and running

• Our new Band-Seal/fabrications function is now up and running.

Instead of the usual Secret Santa, the staff at Methil decided to donate Christmas gifts to the Salvation Army appeal for toys for underprivileged children. The picture shows a couple of trollies full of goods donated.

Jim Crawford Graeme Seath Jo McCool

New Band-Seal/fabrications functionOur new operation allows us to produce special fabrications and non standard Band-Seals locally with minimal lead time.

Don WhyattWelcome to Don Whyatt who joined us as site operations manager during the year.

Methil office supported the Lighthouse Charity by taking a table at the Annual Dinner at the Sheraton Hotel in Edinburgh.

Eric Bristow met drainage legend Jim Crawford at a darts event in Glasgow!Thanks to MSP David Torrance for

cutting the ribbon on our new twinwall drain line in Autumn 2015. The new line – which cost in excess of £1m – allows us to make 150, 225 and 300mm pipe, which will increase product availability in Scotland and reduce our internal transportation of products which we previously only made at Cawthorne

Mike Fairgrieve

Specialist Plastics

Tipton Tel: 0121 522 0290 specialistplastics@naylor.co.uk Wombwell Tel: 01709 872574 amcoplastics@naylor.co.uk

Specialist Plastics

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Good luck to………David Sykes who retired from Naylor Wombwell having joined precursor company Amco Plastics Ltd in 1998.

Who's in charge?John Grice aided and abetted by production managers Wayne Mallaby (Wombwell) Darren Whitehouse (Tipton) Mark Grimes (Injection Moulding Wombwell), John Whitehouse (Commercial) and Paul Parker (General Manager Polymers).

What's our mission?To be a responsive, reliable, service-led supplier of bespoke plastic extrusions, mouldings and materials.

What are our objectives for the year?• Achieve the move of the Wath

site to Wombwell with minimal operational disruption.

• Expand extrusion customers and products.

How are we doing?• The move to Wombwell has progressed well.

• The division has taken injection moulding on board.

• Development of the customer base is ongoing.

Any new faces?Mick Cox – divisional sales manager

James Baxter and James Attwood – Wombwell

John Burgess, Jason Glover and Keith Malone – Polymers

Ryan Senior, Sean Hibbert and April Thompson - Injection Moulding

John Grice

Mick Cox James Baxter

John Burgess

Ryan Senior

James Attwood

Jason Glover

Sean Hibbert

Keith Malone

April Thompson

Darren Whitehouse

Mark Grimes

John Whitehouse

Paul Parker

Wayne Mallaby

Some donated play tunnels went down well at Hatchell Wood pre-school.

……….as did our donation of football targets left over from a previous order which we donated to a number of local football clubs.

Congratulations to Byron Leebetter on passing his IOSH Managing Safely Training.

Congratulations to Wendy Forde and Michael Leasley on obtaining their first aid certificates.

Ventilation DuctJust before the move from Wath, our ventilation duct team were busy making 1.8metre x 5m long heavy duty mining and tunnelling ducts. They weighed 95 kilos each and were supplied with clamp bands to join the 5m lengths together on site as required.

As part of the move from Wath to Wombwell, we are replacing 7 old extruders, with new 75mm logic Boston Matthews machines incorporating Siemens technology (motors, plc, drivers). These will allow such things as shop floor data collection and condition monitoring in the future

Tipton tubes played a prominent part in an art exhibition at Clore Art Studio, part of Manchester Art Gallery.

Core tubes remains a major area of activity for our Specialist Plastics division and Tipton acquired a sophisticated automated core cutter in Autumn 2015 to increase our capabilities in this area.

Bongo TubesTipton have produced the Bongo Tube, a child friendly 100% recycled percussion and drumming tube for schools for customer Acousticx Ltd.

As part of the BBC Children in Need fundraising initiative, Acousticx donated £5.00 for every education box sold

Naylor Polymers pelletiserHyde based Naylor Polymers acquired a pelletiser during the year allowing us to produce PVC material in pellet as well as pulver format.

……and toJohn Bradnick who retired from Naylor Tipton having joined precursor company Rateoval in 2001.

Achievements

Core Tubes

Personnel Roundup

Tel: 01226 444350 info@naylor.co.uk

Personnel Roundup

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Employee Forum members for the year to November 2016 are:Ryan Senior, Jamie Nixon, Liz Hudston, Adrian Lindley, Wendy Trueman, Gisela Herrera, Adam Waite, Jo McCool, Chelsea Brook and Jake McArthur.

Simon Marsh, Helen Jowitt and Rachel Bramley attended a Palmer Construction charity fundraiser and laid hands on the JPT Trophy held by Barnsley FC!

We had 2 trips to Wembley with Barnsley FC. The second was the most eventful, with the Naylor coach rescuing 35 stranded Barnsley fans at Leicester Forest service station which attracted a number of press articles.

We had a ball at the President's Ball!A fine selection of Team Naylor attended the Barnsley and Rotherham Chamber of Commerce President's Ball which was held at Elsecar Heritage Centre.

Ray Hadley retired as non-exec after 6 years: Edward Naylor made a presentation on behalf of the exec team to thank Ray for his valuable input.

The Cawthorne canteen Christmas lunch went down well again – despite the dubious input of 3 main board directors.

……..as did the Christmas dinner at Magna.

Well done to our apprentices for organising our at-tendance at annual careers event 'Get up to Speed'.

Congratulations to our Health and Safety Manager Dan Wain, who completed the Three Peaks challenge in 9 hours and 40 minutes as part of a charity fund raising initiative for Wakefield Hospital.

We ran out of room for all of the training presentations but congratulations to all who obtained certifications and qualifications during the year including:

Internal QMS Auditor Training

Quality Management Systems

Fork Lift Truck Training

First Aid Training

IOSH

Roy Gooch organised a sea fishing day for customers from the South West. Malcolm Davies is pictured with his prize winning catch.

Helen Waller represented Naylor at the Mindfull Employer Conference in Leeds.

Rob Hughes' 50th birthday was marked by some serious cake eating.

Obituaries.

Phil Morris (1949– 2015)

Joyce Woodhead (1926-2015)

David Booth (1942-2016)

Gordon Leach (1949-2016)

Wilf Travis (1932-2016)

Head Office News

Tel: 01226 444350 info@naylor.co.uk

Head Office News

11

The last 12 months have been eventful for the finance department. My brief in joining Naylor was to build a finance function capable of controlling and servicing a £100m business and it's so far, so good.

There have been one or two comings and goings and I would like to wish the departed Jane Wilby and Dean Booth all the best whilst thanking Andrew Dodds, Jason Jones and Dawn Jennings for their valuable contributions during their first 12 months with my team; all 3 have hit the ground running. Welcome also to Matthew Worrell who has just joined as Project Management Accountant. We have also benefitted from the input of interims Glyn Lanham kick-starting a review of Bills Of Material across the group (this will allow each division to have a better understanding of product costs) and Azmat Akram as interim Financial Controller (his role is to help bridge the gap whilst we recruit Jane's replacement).

One of our most important roles is to build relationships between finance and the rest of the business and provide sales and operational teams with the tools they need to make informed business decisions. We have made some progress in combining the old Naylor companies into one and completing the first phase of restructuring the chart of accounts to allow accurate and more meaningful information. Although there is still much to be done, our Divisional teams now have more and better information at the tip of their fingertips and are able to drill into areas of cost etc.

We have also had the challenges of producing the

Lisa Jarson, a material scientist from Nuremberg, Germany spent 11 weeks internship with us.

2015/16 statutory accounts; the audit itself was fine and resulted in a clean audit report, but we (and our auditors Grant Thornton) have had to contend with a new accounting standard, FRS 102, with its changed accounting treatments and copious accounting disclosures. Our financial accounts are now almost 50 pages long, which for a privately owned business of this size is bonkers.

Another area of responsibility has been currency management and this is particularly important in a year where we anticipate spending in excess of £4m on a large diameter plastic line. Thankfully, we bought the related Euros before the post Brexit fall in sterling.

Naylor wouldn't be Naylor without some extra-curricular activities and there has also been due diligence and integration work to do on the two acquisitions, ADP and Whites Concrete, as well as work related to the RGF grant on the new line, R&D tax credits etc. Not a boring year….

Glyn Lanham Azmat Akram Matthew Worrell

Creative arts with scrap pipes!We have previously reported on the good works of the Scrap Creative Reuse Arts project. Last year, we donated a van-load of ducting off-cuts and other scrap items and these went down so well that they asked us for more: we were pleased to oblige! To read more about their good works, see www.scrapstuff.co.uk

Thank you to everyone who took part in raising funds for Barnsley Hospice by wearing their Christmas jumpers!

Congratulations to Charlie Chappell who won the Christmas hamper donated by Helen Jowitt to raise funds for MacMillan Cancer Support.

Naylor's senior ladies attended the International Women's Day event in Leeds on 11 March.

Finance - RUTH'S RUMINATIONS…

and another thing . . .

Tel: 01226 444350 info@naylor.co.uk

and another thing . . .

12

The Made in Britain campaign supports and promotes British manufacturing. Naylor, a member, hosted a Made in Britain film crew at Cawthorne.

Barnsley and Rotherham Business AwardsNaylor played a prominent role in the Barnsley and Rotherham business awards held in late 2015. We were given a special award in recognition of our 125 year anniversary and were also highly commended in two categories.

EEF Conference and VisitThe EEF is the industry body for engineering and manufacturing employers and their annual conference at Westminster's QE2 Conference Centre was attended by over 800 delegates. Edward Naylor was a panellist for the session on exporting which was compered by BBC Breakfast's Steph McGovern.

Hard on the heels of the EEF conference, Naylor's Cawthorne site was pleased to host a visit by EEF Regional Director Andy Tuescher and Chief Operating Officer Caroline Gumble.

Rather out of the blue, we received a contact from the New York Times, wanting to take photos at a UK manufacturer's premises in the run up to the European referendum.

As part of our 125th anniversary celebrations, we received a visit from Mr Brian Mathers, the Mayor of Barnsley.

Brian is well acquainted with Naylor having worked in the clay drainage business for a year in the 1960's.

The Lord-Lieutenant of South Yorkshire, Andrew Coombe, represents Her Majesty the Queen in South Yorkshire. The Lord-Lieutenant visited Cawthorne in June and was presented with two specially engraved pots as a memento of his visit.

As part of our Work-wise foundation programme, we hosted a visit by a group of students from Stocksbridge and Firth Park High School.

Hatfield Academy visited Cawthorne as per of their Science, Technology, Engineering and Maths (STEM) commitment - they are shown in the factory with Elliot Goodman.

For the 3rd year running, we were pleased to support the Work-wise foundation, helping young people to develop skills and aptitude for careers in engineering and manufacturing.

Elliot Firth, Jack Taylor and Nathan Jones worked with and observed teams in our injection moulding, plastic extrusion, hand moulding and engineering departments.

Made to LastFormer Denby Dale resident David Biltcliffe visited the Naylor works as part of a school trip in 1949 and made this owl, which the then production team fired for him. The owl – and its owner – seem to be weathering the march of time remarkably well!!

Barry at LordsNaylor's Barry Marshall attended the British Water winter reception at the House of Lords.

Naylor was the 50th business to sign up to the Barnsley College's employer engagement initiative, Talent United. Launched in September 2015, the college was delighted with the level of interest employers from across the region have shown in Talent United.

Naylor's Nobblers – starring Arsenal legend Nigel Winterburn – and non-legends Edward Naylor and Stuart Jones – were in action at the annual Rudridge pro-am tournament.

Barnsley Apprentice PledgeNaylor is a signatory of the One Barnsley Apprentice Pledge – a commitment that signatories will employ 2.5% of their workforce in Apprenticeship positions. The Pledge – which is aimed at creating over 500 Apprenticeships for Barnsley – won the Award for CSR/Environment in the 2015 Sheffield City Region Awards – despite being one of eight shortlisted entries.

A stockcar bearing the Naylor logo raced by Chris Farnell from plastic stockist Farnells had its inaugural outing at Coventry on 2 April.