Kitchen and Bathroom News @ The K&BZine

Maytag Corporation issued a press release on June 20th, 2005, announcing that it had received a preliminary non-binding proposal from Bain Capital Partners LLC, Blackstone Capital Partners IV L.P. and Haier America Trading, L.L.C. to acquire, subject to certain conditions, all outstanding shares of the Company for $16 per share in cash.

Triton Acquisition Holding Co. (an entity organised by an investor group led by Ripplewood Holdings LLC) has subsequently advised the Company orally that the Company's continued furnishing of information to and discussions with Bain, Blackstone and Haier America after 12:01 a.m. on June 18th, 2005, gives Triton Acquisition Holding the right to terminate the Merger Agreement, dated as of May 19th, 2005, among Triton Acquisition Holding, Triton Acquisition Co. and the Company under Section 8.01(d)(ii) of the Merger Agreement and receive the $40 million termination fee described under Section 6.07(b) of the Merger Agreement.

Triton Acquisition Holding also advised the Company that Triton Acquisition Holding believes that the process the Company is engaged in with respect to the Bain, Blackstone and Haier America proposal is resulting in disruption and uncertainty that is damaging to Triton Acquisition Holding and, in Triton Acquisition Holding's view, is likely to be damaging to the Company.

Triton Acquisition Holding further advised the Company that Triton Acquisition Holding believes that the Company can and should accelerate the process with a view toward bringing the process and its damaging consequences to a rapid conclusion, and that Triton Acquisition Holding will continue to monitor the process while reserving all of its rights.

The Company believes that the Merger Agreement gives the Company the right to furnish information to and engage in discussions with Bain, Blackstone and Haier America, and that doing so does not give Triton Acquisition Holding a termination right. The Company also believes that the effects on Triton Acquisition Holding and the Company referred to by Triton Acquisition Holding have not occurred. The Company intends to pursue its process with Bain, Blackstone and Haier America as expeditiously as practicable consistent with the fiduciary duties of its Board of Directors.

• Maytag Corporation announced on 20th June that it had received a preliminary non-binding proposal from Bain Capital Partners LLC, Blackstone Capital Partners IV L.P. and Haier America Trading, L.L.C. to acquire all outstanding shares of Maytag for $16 per share cash. On May 19th, 2005, Maytag agreed to be acquired by an investor group led by Ripplewood Holdings LLC for $14 per share cash.

According to the preliminary non-binding proposal, completion of due diligence is expected to take 6-8 weeks, and the proposal is conditioned, among other things, on the due diligence, along with the negotiation of a definitive agreement and necessary approvals. The proposal contemplates debt financing provided by Merrill Lynch & Co. on terms and conditions to be agreed upon among Merrill Lynch, Bain, Blackstone and Haier America.

After a special committee meeting of the Board of Directors, Maytag stated that, while it intends to proceed with further due diligence with Bain, Blackstone and Haier America, there can be no assurance that the preliminary non-binding proposal would result in a definitive agreement.

Howard Clark, Maytag's lead director, said, 'We continue to support the Ripplewood transaction; however, we also believe that it is incumbent on us to pursue this possibility of achieving a higher price for our stockholders.'

• Maytag Receives Commitment Agreement for $500 Million Senior Secured Credit Facility

Maytag announced it has signed a commitment letter for a $500 million five-year, senior secured revolving credit facility. The new credit facility would be fully underwritten by J.P. Morgan Chase Bank, N.A. and Citigroup Global Markets, Inc. and secured by accounts receivable and inventory for certain Maytag subsidiaries.

The company also announced that it has obtained an amendment to its current $300 million revolving credit facility, due March 2007.

'While historically we have not drawn on this revolving credit facility, the amendment eases covenant requirements and the facility is now secured by accounts receivable and inventory for certain Maytag subsidiaries, 'said George Moore, Maytag's executive vice president and CFO.

Today's announcement is the latest development in the company's previously announced plans to review its financing options. During Maytag's first quarter 2005 conference call (April 22, 2005), the company announced that it would secure a new $500 million credit agreement during the second quarter.

'The new $500 million credit facility commitment and the amendment to the existing $300 million revolving credit facility provide Maytag with substantially more covenant flexibility and funding security to meet liquidity and long-term financing requirements,'said Moore.

The commitment letter is effective until December 30, 2005. The current $300 million credit facility would be replaced upon the issuance of the $500 million credit facility.

Henk Tuijtelaars has embarked on a new challenge with Keller Kitchens. The former director of Alno Kitchens (Holland) has joined Keller as the Export and New Business Manager.

After a record year in 2004, Keller has employed Henk Tuijtelaars to increase Keller’s market share in the UK which has proved increasingly successful over the past five years.

To handle this growth, Keller is investing several million euros over the next two years in various projects. Phase one is already complete which an extension of over 4000m2 to its factory in Roosendaal, Holland.

Following this investment and Henk’s appointment Peter Bastinck, Keller’s Commercial Director, expects a positive end to 2005 with a 5% rise in turnover.

Tel: 0161 962 6939
Web: http://www.kellereurope.com

Uwe Hanneck, Chief Executive Officer of BSH Home Appliances Ltd, has been elected Chairman of AMDEA, the domestic appliance manufacturers trade association.

He becomes the industry’s leader at a time of intense activity on a number of issues. ‘We face many challenges just as the market has become a little more difficult for all of us in the wider appliance industry,’ said Uwe Hanneck.

‘The final stages of negotiation with the Government on the implementation of the WEEE Directive (Recycling & disposal of Electrical/Electronic Waste) are taking place right now. Manufacturers are keen to embrace the spirit of the WEEE Directive and will continue to work constructively with the government and stakeholders to ensure its successful implementation.

‘We are currently tackling the problem of Returns head on with a new code of practice for dealers to agree with manufacturers and onerous new Product Safety Regulations come into force on 1st October this year, giving wider powers to local authority officials.

‘These are not just issues for the manufacturers. All of us - from the factory floor through to the distributor and the retailer, from the design of the product to its eventual recovery and disposal – we are all in this together.

‘AMDEA is happy to play its part in dealing with these challenges. We will work with our trade partners to overcome the problems, but they must share the burden, not just expect manufacturers to shoulder it all by themselves,’ added Uwe Hanneck.

Since he took the helm at the BSH Home Appliance Group in 1983, Uwe Hanneck has built its presence in the UK market and in the process, has become one of the industry’s most highly respected figureheads.

He is Chairman of REPIC - the producers’ compliance scheme company that he helped to establish last year - and he played a leading role in getting The AMDEA Show launched at the NEC in April 2005.

In addition, he is also chairman of the Kitchen Bathroom Bedroom National Training Group (KBB NTG), a government funded industry-training initiative, which includes key representatives from all areas of the KBB industry.

As a previous director of AMDEA and now AMDEA chairman, Uwe Hanneck takes over from Lorna Fellowes, Managing Director of Triton, who remains on the AMDEA Board.

‘Uwe is a well-liked industry figure – and a real live-wire,’ said Director General Peter Carver. ‘His knowledge of the industry is encyclopaedic, and we are fortunate to have his leadership during a period when the industry is facing so many challenges.’

Contact: Peter Carver
Tel: 020 7405 0674
Email: mailto:peter.carver@amdea.org.uk

Uwe Hanneck – Brief Biography
Uwe Hanneck is Chief Executive Officer (CEO) of BSH Home Appliances Ltd, the umbrella organisation for kitchen appliance brands Bosch, Siemens, Neff, Gaggenau and now Viva! in the UK. The company distributes a comprehensive range of built in kitchen appliances as well as freestanding refrigeration, dishwashers and laundry, in addition to niche small electrical appliances.

As CEO, Uwe Hanneck is responsible for the overall management and strategic development of BSH’s business in the United Kingdom and Ireland.

Uwe Hanneck came to the UK in 1972 to set up Linectra (GB) Ltd, importing three German built in appliance brands into the UK, of which only Neff remains today.

During the early seventies, Uwe Hanneck introduced the concept of the fitted kitchen into the UK. He is widely credited as being the first industry leader to recognise the importance of selling kitchen furniture together with kitchen appliances, as a ‘package’, in a showroom environment offering full advice and installation services directly to the consumer. Today this concept is standard industry procedure.

Following two years at the helm of Neff in France, Uwe Hanneck returned to Neff UK in 1983 coinciding with the time when the company became part of the global BSH domestic appliance group, now the third largest manufacturer of appliances worldwide with 71 companies in 40 countries and 42 factories in Europe, USA, Latin America and Asia.

Currently also Chairman of the producers’ compliance scheme REPIC and of the Kitchen Bathroom Bedroom National Training Group KBB NTG, Uwe Hanneck brings to his new role at AMDEA a wealth of knowledge and experience of the UK kitchen industry gleaned over the last 33 years.

Portway, which launched a dealer incentive programme on 1st February, has been overwhelmed by its resounding success. Over 120 dealers have already signed up for the promotion to win a trip to the Bahamas and as a result Portway has extended the number of dealers eligible to win a place.

The Bahamas incentive has been cleverly supported by manufacturers who are offering increased points and special offers throughout the promotion. Support has come from manufacturers including AEG, Indesit Company, and Bosch. In addition, Portway's trade show on 31st August at the Thruxton race circuit will provide dealers with a final attempt to win their place on the trip - with the show also acting as the last day of the promotion.

Neil Bradford, Portway Sales Director and John Bainbridge, Portway Commercial Director

John Bainbridge, Portway Commercial Director, comments: ‘We have been pleasantly surprised by support for the promotion and will now be taking nearly 30 dealers and their partners on the trip to the Bahamas. We believe the holiday is the perfect way to reward our dealers for their commitment. A key strength of the promotion is that even those who don't win the holiday will be rewarded for their efforts.’

Tel: 01264 334596

Kitchen Bathroom Bedroom Specialists Association member Nolte scooped a major design award at the National Home Awards 2005, sponsored by Ideal Home and The Daily Telegraph.

Other finalists for the award were Poggenpohl, John Lewis Partnership, The Newcastle Furniture Company, and Ikea.

Speaking after the Awards, Mark Evans, MD of Nolte said ‘We are delighted that our popular Spot range has received recognition in winning such a prestigious award. It has been refreshing to experience the serious judging process that took place and we look forward to entering again in 2006’

Nolte’s Spot Range was voted tops in the Cif Kitchen Design Award sector, in which two of the four runners-up were also KBSA members (Poggenpohl and John Lewis Partnership).

The award was for the kitchen range that best embodied style, flair, function, innovation quality, and value.

One of the award judges was KBSA chief executive Graham Hayden, who said: ‘It was great to see three KBSA member companies making it to the top five shortlisted for this prestigious award.

‘This kind of major design award scheme does much to encourage talent within the interiors industry and the KBSA is always pleased to support such important endeavours.’

The National Home Awards were presented at London’s Artillery Gardens on June 9th.

Galerie Optimise, the compact suite from Twyford Bathrooms, has won The Best Bathroom Design award at this year’s National Home Awards.

Impressing the prestigious panel of judges with its clever design, Galerie Optimise was the clear winner for all key criteria: style, flair, function, innovation, quality and value.

Not only does Galerie Optimise offer the customer a room-saving solution, but it also ensures quick and fuss-free installation thanks to Twyford Bathroom’s Total Install system. The comprehensive Galerie Optimise range is a good choice for those with a limited amount of room, and, as part of the esteemed ‘Galerie’ family, will add style and flair to any bathroom.

Anna Burns, Marketing Manager of Twyford Bathrooms says ‘We are thrilled to win this award, especially as we were up against such strong competition. We have always been very proud of Galerie Optimise, and feel that our designers have created a champion in its sector. As space becomes more and more limited in today’s homes, a stylish yet functional compact suite is invaluable to the customer’.

The aim of the awards is to recognise excellence in the creation of outstanding homes. The ability to move the WC Pan from side to side to avoid radiators or pipe-work means Galerie Optimise is ideal for tricky and compact bathroom spaces.

Thursday 9th June marked a momentous occasion for Hotpoint, when the company received the Home Innovation Award at the National Home Awards 2005. The black tie event, attended by over 700 people from across a range of industries, took the form of a Champagne reception and gala dinner at the Artillery Gardens in London.

The award acknowledges Hotpoint’s ability to manufacture products that apply technology and design innovation to meet a consumer household need. Judges also looked for evidence of style, flair, function, quality and value amongst the company’s white goods product portfolio.

Hotpoint received the award for its Built-In SE100PX Touch Control Single Oven in stainless steel, which blends 21st century technology with bold design.

Sophisticated Hotpoint design and technology has been applied to every detail on this top-of-the-range model, including touch controls which cleverly display a host of advanced features while also offering consumers 8 programmes. In addition, the Fast Clean feature uses a pyrolytic programme and the latest technology to clean the oven at the simple push of a button. In little over an hour all that is left is a small pile of ash to wipe away.

Neil Tunstall, Marketing Director who collected the award on behalf of the company said, ‘We are delighted to have received this award which recognises the efforts and progress made in the area of product innovation at Indesit Company.

Innovation is a core value within the company and it is very rewarding for us to see this particular Hotpoint product win the white goods section of the Home Awards 2005.’

Tel: 08701 50 60 70
Web: http://www.hotpoint.co.uk

The Summer Sales promotion by British Bathroom manufacturer, Imperial Bathrooms, has been just been launched. It has been designed to offer both new and existing retailers the opportunity to boost summer sales with display incentives and competitive stocking deals on a comprehensive range of new products.

Running until the end of September, the promotion encompasses two new and distinctive sanitaryware ranges - Etoile and Firenze - together with new furniture additions to the popular Linear and Esteem ranges including a bow-fronted wash-station suitable for the new Expressions vessel bowl. Special deals are also available on the company’s six-model collection of hand-crafted, hand-finished cast iron and roll top baths.

Antonio Garrido, Imperial Bathroom’s newly-appointed Managing Director, explains: 'The Summer Sales Promotion follows on the back of two very successful and recent retail promotions; the ‘Blue Ribbon’ and the ‘Isis & Amena’ promotions. This latest retail incentive not only provides a profitable opportunity for those retailers who wish to maximise displays and exploit stocking deals of several of our new products, but it continues to re-enforce the commitment to our retailer network and reflects the new and innovative direction of Imperial Bathrooms.'

Antonio added: 'The quality and opulence of our latest sanitaryware ranges is unquestionable and we are confident that they will form stunning showroom displays, particularly with a cast-iron bath centrepiece.'

The Summer Sales promotion continues a hive of activity for Imperial Bathrooms. Together with a new product development strategy, the company has recently unveiled a number of marketing initiatives including the adoption of a new brand-positioning platform ‘Imperial Bathrooms – A Modern Classic’. The company has also launched a comprehensive 96-page Design Guide and a new-look, user friendly web site.

To obtain a Summer Sales Promotion pack and a copy of the new Design Guide, retailers should contact Imperial Bathroom’s customer services team on 0870 06 61 62 3 or visit http://www.imperial-bathrooms.com

Europe's largest manufacturer of toilet seats, Pressalit Group, is investing DKK135m (E18m) to expand its production capabilities. The investment features the installation of an automated system to replace manual assembly operations at the company's plant in Ry, Denmark.

The new line comprises nine robots, cameras, sensors, laser light, servo systems and conveyor belts. It assembles all parts of a toilet seat in just 9.2 seconds, according to Pressalit.

The robotic handling system is used to mount steel hinges and plastic buffers on the urea-formaldehyde resin toilet seats. The company developed the system in collaboration with ProInvent, a robot systems supplier based in Zealand, Denmark.

Pressalit had expected around 15 job losses as result of the automation, ‘but until now, we have been able to maintain the same number of employees due to increased production activities,’ a spokesman for Pressalit said.

The company lists its total employment at 395 in 2004. Pressalit reported sales of DKK446m (E60m) in 2004 and expects turnover to grow by around 15% this year. The company's sales come mostly from its toilet seat manufacturing operation though it also produces bathrooms accessories and equipment.

Style Your Own Bathroom with Showerlux

'If you fancy adding your own designer flair to your bathroom, why not consider Showerlux’s premium Bespoke made-to-measure service which gives you the opportunity to create a unique showering solution for your home.' says Showerlux.

Whether you’ve got a vision to realise or a more compromising area to fill Showerlux’s bespoke service has been conceived to make choosing your own shower enclosure or door an easy, hassle-free, option. The service begins with an individual site survey where a Showerlux representative will visit your home to measure your showering space.

You will then receive a fully costed design recommendation for your approval with the option to have your unique design installed by a Showerlux engineer. The service takes just three to four weeks from agreed specification to fitting.

The Bespoke Service caters for both classic and more contemporary tastes. It is available on three of Showerlux’s most popular ranges including the minimalist frameless 3D range, new Simply framed range and iTS range with its choice of trim and glass options.

Showerlux’s Bespoke Service is available by calling customer services on (024) 76882 515 or visiting selected bathroom retailers.

Web: http://www.showerlux.uk.com

Bathroom distributor The Home Improvement Bureau Ltd. is officially changing its company name to HiB Ltd. from July 1st 2005.

‘The company has been known by the shortened version in the industry for some time now, with the majority of our customers and the press using the HiB name rather than the formal version, so it just seemed a natural progression to make it official’ said Steve Kaye, Marketing Director. ‘As a forward thinking and modern company we felt the shortened corporate identity is a better reflection of our profile’ he added.

Tel: 020 8441 0352
Web: http://www.hib.co.uk

Dedicated contract kitchen supplier Eliton has introduced its new rigid kitchen –Chelsea : A pear veneer door, combined with a sturdy with 20mm MDF carcase, is accented by strong black grooves, and its sleek stainless steel details complete a contemporary look.

With a dedicated manufacturing plant fulfilling only Eliton orders, the quality of the finished product is self-evident with only the best internal mechanisms and fittings being used. An example of this are the kitchen drawers, which benefit from concealed runners and a self-closing mechanism.

As with all Eliton designs the Chelsea is available in a variety of standard sizes, and with a large choice of handles, a truly individual look can be achieved by choosing the finishing touches from an array of accessories that accompanies the range.

The ultimate bonus for developers is that Eliton offers un-branded designer kitchens at factory-manufactured prices, and will only supply the contract market, allowing for the ranges to be added to your individual Own-Brand portfolio.

Eliton Kitchens can be found at Diameter Design, 416 Kings Road, Chelsea, London SW10 OLJ. For further information, please call Kish Agravat on 0207 351 5800 or email mailto:kish@diameterdesign.co.uk

Web: http://www.eliton.gr (click the British flag for English version)

‘20 years ago traditional gold effect tap packs from Italian or Portuguese manufacturers were all the rage.’ stated Alan Winch, Founder and Chairman of Mayfair Brassware.

‘20 years on and things have certainly changed, traditional products have really taken a backseat and gold finishes are almost in non-existence. The multiple DIY retailers have grown to a position of dominance in the market. The merchant groups have consolidated and grown through acquisition, and brassware suppliers have also smartened up their sales and marketing functions with a few acquisitions thrown in for good measure.

‘While the market for styles and product trends has moved on apace and the massive American manufacturers have turned their eye and their money towards the UK market, there is still room for the independents and we at Mayfair are here to stay.

‘However, it has meant that to keep up with the market we have had to change and evolve new products new literature and perhaps more strategically important ‘new partners’.

‘I am pleased to confirm,’ Stated Alan ‘that we are now truly established as a manufacturer with factories producing goods in both Thailand and China. With our manufacturing base now firmly in place we are well positioned to continue our penetration of our target markets not only here in the UK but throughout Europe. The future’s bright, the future’s in your hands – to become a stockist of Mayfair products contact us on our website – http://www.mayfairbrassware.com and go to ‘how to become a stockist’.’

Salford-based glass processor and glazing contract specialist, Anders Glass has increased its ability to produce high quality glass designs with investment in new state-of-the-art CNC technology.

The CMS FT 2.18 machine is the most powerful CNC processing system on the market, with the ability to process glass up to 50mm thick. It will complement Anders’ existing top of the line processing equipment that enables it to produce anti-bandit, bullet resistant and fire resistant glass as well as architectural glass for balustrades, structural assemblies, A.P doors and canopies.

While assisting Anders with its continued success in the architectural sector, the CNC investment also reinforces its growing commitment to the glass furniture market, with the ability to process any thickness of glass into complex shapes, for example for UV bonding, vanity units, splash backs and kitchen work surfaces.

'In addition to standard doors, partitioning and balustrading, we are being increasingly asked to produce specials such as vanity units or breakfast bars, in both commercial and domestic applications,' says managing director, Simon Anders. 'This new machine gives us the flexibility and capacity to produce some really exciting work.'

Anders Glass has been one of the few exclusive stockists of Pilkington’s multi-laminated fire resistant Pyrostop glasses for over 15 years. During this period it has gained vast experience in processing Pyrostop, making fire rated IGUs and installing fire resistant glasses and screens. Investment in this new machine will enable Anders to now cut even the most complicated shapes with greater speed and accuracy.

Tel: 0161 736 2487/8
Email: mailto:enquiries@andersglass.co.uk

Saturday 14th May saw the grand opening of the new Aga Showroom in Ringwood. The shop was officially opened by The Mayor of Ringwood, Cllr Michael Thierry at 11.00am with a great speech. The mayor also performed the ribbon cutting ceremony and cut the cake. He even got involved in some cooking.

The day proved extremely successful and a fantastic start for the new shop. The shop was busy all day with customers enjoying the music provided by the saxophone duo and the many varied delights cooked up by Sarah Whitaker, the Aga demonstrator on the day.

The shop staff (Yvonne, Carol and Madeleine) worked hard selling all day long and further thanks to sales project managers Derek Sanderson & Rob Aveyard for all their technical assistance on the day.

Web: http://www.aga-rayburn.co.uk

Beaumont Homes is using Kinedo products to furnish the bathrooms at the company's current development, luxury new homes in South Gloucestershire.

Bi-Fold Doors are ideal when space is at a premium. The door folds inwards to avoid existing bathroom fittings and is available with optional side panel to form an enclosure. The Aquatek is a stylish shower column crafted out of solid staves of teak. It comes complete with fold down seat, accessory areas and hydromassage jets. The curved Quadrant Door is ideal for corners. Adjustable rollers assist installation, operation and cleaning.

Web: http://www.saniflo.co.uk

Aga Foodservice issued a warning to the catering industry at a summit in London on 12th May about the safety and efficiency of sediment zone fryers, the type used most restaurants, schools and catering operations, and called for improved training for caterers on oil changing and filtration.

Delegates at The ‘Clean Up Frying’ summit, held at The Lincoln Centre, Lincolns Inn Fields, London heard from a range of speakers highlighting three key issues:

•The health implications of poor quality and old oil used to cook food
Independent research commissioned by AGA Foodservice highlighted caterers attitudes to fried food, fryers use in the day to day commercial kitchen as well as the reality of how often the fryers they use are cleaned. The survey results highlighted very poor understanding of when and how to change the cooking oil and that cleaning the fat fryer is considered by the majority to be the worse job in the kitchen.

Technical people at Falcon, Aga Foodservice Group’s commercial cooking operation, who have spent 18 months conducting extensive equipment testing, presented their findings on the health hazards found in the sediment at the bottom of Cool Zone Fryers.

Falcon’s research was confirmed by scientists from Reading University who presented results from independent testing on oil quality that has been carried out over the last few months.

Dietician Helen Stracey highlighted the importance of a certain amount of fat in a balanced diet to demonstrate that calling for an outright ban on fried food would be unrealistic, but that more attention needs to be given to the quality of the fried food.

• Fryer safety in the commercial kitchen and health and safety when handling hot oil
Leading expert on health and safety in the commercial kitchen, Chris Purslow demonstrated the potential dangers of poorly designed kitchens, using inappropriate equipment and employers’ liability should accidents occur. He also outlined the confusion over the new EU regulations over the disposal of used cooking oil.

• Environmental issues relating to Fryer Efficiency current legislation
The gap between efficiency standards imposed on domestic appliances and those in the commercial sector was also highlighted.

Stephen Rennie, Chief Operating Officer of Aga Foodservice Group, commented:
'Such is our concern over the health and hygiene implications of our findings that we sought the views of experts in the catering industry and brought them together at this event. We have heard about the reality of what happens in the commercial kitchen from grass roots research as well as hearing the results of independent scientific results and the results make compelling news

'Unlike food manufacturing for the retail market, the foodservice sector lags behind in respect of hygiene, health and efficiency legislation. These are serious issues that need to be addressed and I hope that this debate has kick-started the quest by Aga Foodservice to help raise food standards and safety in the kitchen.'

Electrolux Outdoor in Cooperation with Firefly Energy on New Battery Technology

Electrolux Outdoor has signed an agreement with Firefly Energy. Firefly will develop and produce a new battery technology on an exclusive basis for the Group's outdoor lawn products.

Firefly will receive equity and engineering funding (USD 1,7m) from Electrolux in order to develop the first version of its advanced lead acid battery for Electrolux.

'Electrolux can see a great potential in Firefly Energy's advanced battery technology. Even if this project is at an early stage, we believe Firefly's technology allows us to introduce new levels of cordless power and efficiency to our customers,' said Johan Dyberg, Vice President of Core Technology for Electrolux Outdoor Products.

Firefly technology utilises the same chemistry as lead acid batteries but replaces the heavy metal historically utilised in those batteries with an advanced composite material; hence end-of life corrosion problems are minimised, and battery power/energy are maximised. Firefly Energy Inc. was launched as a spin-out from Caterpillar on May 1st, 2003.

Web: http://www.electrolux.com

In mid-June, Nobia's Finnish subsidiary Novart started selling flat-pack kitchens under the name 'Netto-keittiöt' (Net kitchen). The first store will open in the Helsinki area and will be followed in the second half of 2005 by a store in Lahti. There are plans to open around a dozen stores throughout Finland over a five-year period. The stores will have a floor area of 500-700 square meters.

Novart has sold fitted kitchens for some years under the Petra, Parma and À la Carte brands and has a market share in Finland of around 30 per cent. The Finnish kitchens market is estimated at EUR 250 million in producer prices, of which flat-pack kitchens account for an estimated EUR 35 million.

'This is part of Nobia's multi-channel strategy of reaching customers with a range of brands, through different sales channels, thereby achieving broad market coverage,' says Fredrik Cappelen, President and CEO of Nobia. 'We already sell flat-pack kitchens in the UK, Denmark, Norway, Sweden, the Netherlands, Germany and Austria and now it's time for Finland.'

Web: http://www.nobia.se

The Hornbach Group, which operates one of the largest DIY store chains in Europe, countered the trend in the overall sector and achieved significant sales and earnings growth in the 2004/2005 financial year. Even though the 'Do-it-yourself' sector, like the overall retail sector, was affected by the subdued consumer climate, and by an aggressive price war, the net sales of the Hornbach Group AG parent company rose by eight percent to Euro 2.22 billion. The Hornbach-Baumarkt-AG subgroup, at which the core DIY store and garden centre business is pooled, improved its net sales by 8.9 percent to Euro 2.09 billion, breaking through the Euro 2 billion mark for the first time.

'2004/2005 was the best financial year in the long history of our company,' commented Roland Pelka, CFO of Hornbach Holding AG, at the annual press conference in Frankfurt am Main. The earnings before interest and taxes (EBIT) of the overall Group rose by 25 percent compared with the previous year to reach Euro 99 million. The EBIT of the Hornbach-Baumarkt-AG subgroup rose by 41 percent to a record Euro 91 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) showed a year-on-year improvement of 16 percent to reach Euro 181 million at the overall Group, and of 20 percent to reach Euro 152 million at the Baumarkt subgroup. Earnings before tax at the overall Group rose by 37 percent to Euro 62 million, while pre-tax earnings at Hornbach-Baumarkt-AG improved by an impressive 55 percent to reach Euro 68 million.

Solid financial base for the Group

Pelka highlighted the Group's solid financial base. 'With an equity ratio of 30.4 percent at the overall Group and of 31.3 percent at the Hornbach-Baumarkt-AG subgroup, we can rely on a high degree of security and flexibility for the ongoing financing of our growth in Germany and abroad.' The high level of liquidity at the company was largely due to the Euro 250 million bond placed with institutional investors by Hornbach-Baumarkt-AG in November 2004. In terms of accessing sources of capital for further expansion, this represented new territory for a family-managed medium-sized company.

Dividend at same level as in previous year

As a result of the excellent earnings situation in the past financial year, the Board of Management will be proposing the distribution of dividends of the same level as in the previous year for approval by the annual general meetings to be held at the beginning of September. The dividends would amount to Euro 1.14 for the preference shares in Hornbach Holding AG and Euro 0.87 for the ordinary shares in Hornbach-Baumarkt-AG. 'We are thus maintaining our policy of dividend continuity,' stressed the CFO. 'Investors can rely on Hornbach shares as a solid long-term investment with high intrinsic value and a stable dividend.'

More than 11,700 employees at Hornbach

Hornbach opened five new DIY megastores with garden centres in the past financial year and created just under 1,000 new jobs, half of which are in Germany. The company currently operates 119 DIY megastores and garden centres with total sales areas of more than 1.2 million square meters. In the current financial year, the total number of stores is expected to increase to up to 125 with total sales areas of more than 1.3 million square meters. The Hornbach Group now has more than 11,700 employees. The 2005/2006 financial year can be expected to see further growth in this respect as well.

Sales growth maintained in Q1, but earnings down on previous year

The Hornbach Group increased its sales in the first quarter of the current 2005/2006 financial year, with both companies reporting sales growth of 5.4% to Euro 651 million (Group) and Euro 617 million (Hornbach-Baumarkt-AG). However, the sales growth was mainly attributable to the increase in sales areas, with a marginal decline in like-for-like sales. This was principally due to the cold, wet weather conditions in March, the effects of which could not be fully compensated for in the two subsequent months. Moreover, in view of price competition remaining tough, the company had budgeted for a lower gross margin than in the previous year. Taken together, these factors meant that earnings fell short of expectations - as already published in ad-hoc announcements.

Strategic partnership with Kingfisher pays off

For the overall financial year, the company expects to generate sales of around Euro 2.4 billion (Group) and of almost Euro 2.3 billion (Hornbach-Baumarkt-AG). Earnings at the overall Group and at its DIY subsidiary will fall short of the record figures published for the past year. This is partly due to the increased costs relating to the opening of nine new DIY megastores with garden centres, and to the rollout of SAP to all stores. Earnings will be positively affected by the company's strategic partnership with the British Kingfisher group. This cooperation with the largest DIY operator in Europe not only represents a strategic competitive advantage, but also produces price benefits as a result of the joint product procurement activities.

Higher growth than the sector

'We expect our comparable store sales and earnings to show more rapid growth than the overall sector once again,' underlined Pelka. This would mark the seventh consecutive year in which Hornbach had outperformed the sector average in its core German market. The market share of the Hornbach Group will grow from 7.6 percent to 8 percent in the current financial year. By comparison, in 1998 it had still amounted to 4.9 percent.

Web: http://www.hornbach.com