Cladding supplier Vivalda Group grew sales by a modest 6%in the past year but is still hoping for a post Grenfell uplift.
With more than 300 high-rise residential buildings still clad with flammable aluminium composite material (ACM) systems in England alone, there remains a big replacement market for cladding systems that do comply with Building Regulations.
Although it has been more than two years since the Grenfell Tower fire in London exposed the dangers of ACM cladding system, remediation works has started on only a minority of the similarly at-risk buildings.
Vivalda says it is the UK market leader in the supply of A1 & A2 non-combustible cladding panels. Its accounts for the year to 31st December 2018 show sales growth of just 6%, with turnover climbing to £33.0m, up from £30.9m in 2017. Pre-tax profit rose 13% from £2.5m to £2.9m. The company now has cash reserves of £2.8m and is debt-free.
Vivalda Group chairman Peter Johnson said: “Our approach of the last few years to focus on non-combustible cladding is showing strong results with good earnings growth, increased year-on-year comparatives, a solid cash position and a robust, sustainable forward order book.
“And we’re doing this at a time when the pipeline of work available has narrowed owing to landlords seeking precise solutions post-Grenfell, although it’s true to say that the flight to quality has benefitted Vivalda Group. Flying the flag for uncompromising cladding safety will remain Vivalda Group’s key focus for the foreseeable future”.
He said that Vivalda’s position on new cladding regulations would open the door to an estimated £2bn market in refurbishment of unsafe high-rise buildings. He continued: “Presently, the majority of orders continue to come from the new build market, but orders are starting to increase for our A1 and A2 rated cladding panels as replacements for inferior products scheduled for removal on hundreds of high-rises nationwide”.