£2m Nottingham factory investment leads to rise in profits

Added by Love Business East Midlands | 4 June 2019

UPDATED: 4 June 2019

Kybotech, the Nottinghamshire based manufacturer of sheds and garden buildings, has almost doubled profits following significant investment in the manufacturing process.

The company, which manufactures and sells garden buildings through its own websites BillyOh.com and GardenBuildingsDirect.co.uk , has reported pre-tax profits in the year to 30 June 2018 increased from £1.1m to £2.1m. In the same period the company’s turnover also rose from £20.6m to £22.6m

Recent investment in equipment and training has seen production and sales at the online retailer increase and over recent years it has grown its portfolio of products to include log cabins, garden offices and playhouses.

The manufacturer secured £400,000 from a Regional Growth Fund grant which was put towards a total £2 million investment in new wood cutting machinery to enable a much wider range of log cabins to be manufactured on site in Worksop.

Manufacturing capacity has increased, and sales have gone up by 55% since the products were launched on site.

The company has also invested a further £400,000 on the technology, equipment and training to run timber pressure treatment machinery.

The equipment pressure treats and preserves the wood used to manufacture the buildings meaning they’re lower maintenance and more durable.

A statement signed off by the board said:

"The management team have been working hard to deliver better quality products at market leading prices through a mixture of manufacturing site development and R&D.

"Despite the tough trading conditions, turnover has increased by 10 per cent and margins by 15 per cent.

"A strategy of focusing on the development of customer channels that deliver better margins has been a key focus of the management team this year.

"Continuous improvements in manufacturing and fulfilment operations combined with the gains made due to the strong top down R&D culture have seen margins increase from 20.81 per cent to 23.59 per cent.

"These strategies have enabled the group to enhance its market leading position and offer customers a better quality product with more choices at a better value.

"Part of this strategy has been to invest in more advanced technology within manufacturing and the group spent £930,000 on new plant and equipment during the year."

Kybotech employs over 220 worldwide, making sheds, log cabins, playhouses, green houses and outdoor garden buildings. There are currently over 800 buildings in the range which are shipped to customers across the UK.

Founder Charles Walton added:

“The investment in the factory has come at the right time for us. Around two years ago we anticipated a gap in the market for log cabins so began design and manufacture.

“The EU funding allowed us to buy the equipment we needed to speed up the manufacturing process and as a result, we’ve seen capacity increase and sales go up.

“We’re expecting the popularity of log cabins to continue to grow over the coming years and because we anticipated the trend, we’re ahead of our biggest manufacturing competitors.”

Charles continued:

“The pressure treatment equipment is another good way for us to offer our customers more choice and a finished product which will require little maintenance and upkeep.

“Feedback from time poor customers has told us this is what they’re looking for in a shed and wooden garden building and we’re keen to meet that demand.

“Over the next 12 months we’ll be looking at other ways we can upgrade the finished designs and offer our customers an even better-quality product.”

< Back