Manufacturer aims to double sales after toilet ruling
A manufacturer and supplier of toilet cubicles has laid out plans to double the scale of its commercial operation thanks, in part, to a surge in demand for single-sex toilet facilities.
Glasgow-based Rearo, which provides toilet cubicles and washroom facilities, has announced plans to achieve 100% growth in its commercial sales over the next 12 months.
The company’s growth strategy is underpinned by a robust recovery from the Covid downturn in the past two financial years and an anticipated surge in demand for single-sex toilet facilities following new building regulations in England and Wales.
Rearo, which supplies a range of UK businesses including fast food restaurants, supermarkets, and high street chains, has now made a full recovery after the pandemic.
Its turnover for the past 12 months was £9.65m, with a provisional target of £10.8m for 2024-2025.
In the past year, commercial products accounted for 22% of sales, exceeding the company’s target by 13%. This success has prompted a revised commercial sales target of £5m for 2025, compared with a previous target of £2.3m.
Rearo has capitalised on increased demand for home DIY renovations, leading to a rise in domestic sales. This, combined with its recent penetration into new commercial sectors, including hospitality, healthcare, and education, has set the stage for future growth.
The company is anticipating a significant increase in demand for its products as a result of new government regulations banning gender-neutral toilets with multiple cubicles in England and Wales.
These regulations are expected to drive demand for separate single-sex toilet facilities in all new non-domestic public and private buildings. Rearo continues to produce and supply gender-neutral toilet cubicles for buildings in Scotland, where building regulations have not changed.
Rearo has further enhanced its product offerings with the introduction of wash troughs and new laminate finishes, including anti-fingerprint technology and soft matte surfaces.
The company also secured fixed contracts for its electricity and gas supplies and implemented cost-saving measures by utilising more environmentally friendly, exterior-grade MDF instead of birch plywood for its products.
Graham Mercer, managing director of Rearo, said the company is well placed to expand the commercial side of its business. Its commercial team has been expanded from four to seven members with a new commercial representative for central Scotland being appointed.
A significant investment of £120,000 in new equipment will further enhance efficiency and optimise production processes.
Graham Mercer, managing director of Rearo, stated: “We are incredibly excited about the opportunities ahead for Rearo. Our commitment to innovation, despite some challenging market conditions, has created a perfect storm for growth.
“We are confident that we can achieve our ambitious targets, particularly as we are well-positioned to capitalise on the changing landscape of washroom facilities in the UK.”