Financial results for building products group Caradon PLC (24 Queens Road, Weybridge, GB-Surrey KT13 9UX) saw profit before tax up 33% to GBP 152.5m (GBP 114.3m) on turnover of GBP 2.1bn that was largely unchanged on 1995. The profit improvement was mainly driven by cost reduction programmes implemented in the second half of 1995 which more than offset volume reductions in the first half of 1996 and price pressures throughout the year.

In December 1996 Caradon announced the disposal of 18 businesses mainly involved in supplying the automotive industry in order to focus on its core activities of building products (see Plasteurope.com 23, 1996). So the group's operating divisions have been reduced from seven to five. Its largest division is in doors and windows with a 15% increase in 1996 turnover to GBP 561m (GBP 489.9). Operating profit recovered from a GBP 3.4m loss in 1995 to GBP 20.1m. Its German subsidiary Weru AG (D-73635 Rudersberg), in which Caradon increased its stake to 80% during the year, saw profits decline during the first half of the year as market conditions worsened, but cost reduction programmes enabled it to improve profits in the second half. Its turnover was down to DEM 452.8m (from DEM 500.6m) with profit before tax of DEM 31.5m.

Caradon's other activities are in plumbing (turnover GBP 397.9m), electrical (GBP 301m), structural and engineering (GBP 336.8m) and security printing (GBP 211m).

READER SERVICE: Caradon PLC 1996 preliminary results: PIE-No. 41121.