Kitchen and Bathroom News @ The K&BZine

Masco Corporation reported on November 1st that net sales from continuing operations for the quarter ended September 30th, 2005 increased six percent to a record $3.4bn compared with $3.2bn for the third quarter of 2004. Income from continuing operations for the third quarter of 2005 was $262m compared with $289m m for the comparable period of 2004. Operating profit margins were 13.9% in the third quarter of 2005 compared with 15.4% in the third quarter of 2004

While third quarter 2005 sales and earnings benefited from the strong new construction market and certain selling price increases, the Company's third quarter results were adversely affected by recent additional increases in commodity, energy and freight costs, as well as product mix.

The Company believes that higher energy costs and recent trends indicating lower consumer confidence and the related slowing in sales of certain retail products will continue. Given these factors, together with recent additional commodity cost increases, most of which are not expected to be offset by selling price increases until the first half of 2006, the Company believes, based on current business trends, that fourth quarter 2005 earnings from continuing operations will be in the range of $.48 to $.52 per common share and that full-year 2005 earnings from continuing operations are expected to be in a range of $2.20 to $2.24 per common share compared with the Company's previous guidance of approximately $2.30 per common share. The Company's guidance excludes any additional costs associated with its profit improvement programs and any other items.

Fourth quarter 2004 earnings from continuing operations were $.55 per common share excluding the impact of the non-cash goodwill impairment charge of $.31 per common share. Including the charge, reported earnings were $.23 per common share. Results for the fourth quarter of 2004 benefited from gains from the sale of financial investments of $.06 per common share, partially offset by an impairment charge of $.03 per common share, related to certain financial investments. Results also benefited by $.02 per common share from a reduction in the Company's tax rate related to the utilisation of foreign tax credits generated in the fourth quarter on distributions of foreign earnings.

The Company has accounted for the 2004 dispositions of Jung Pumpen, The Alvic Group, Alma Kuchen, E. Missel and SKS Group, and the 2005 dispositions of Gebhardt Consolidated and the GMU Group as discontinued operations.

Third Quarter 2005

Net sales from continuing operations increased six percent, with North American sales increasing seven percent and International sales increasing one percent. Net sales in North America benefited from strong housing starts and certain selling price increases. In local currencies, International sales increased one percent compared with the third quarter of 2004.

Sales of assembled cabinets, installation services and windows in North America were particularly strong in the quarter.

Key retailer sales from continuing operations increased two percent in the 2005 third quarter compared with a 10 percent increase in the second quarter of 2005, a decrease of two percent in the first quarter of 2005 and a six percent increase in the third quarter of 2004.

Sales by segment in the 2005 third quarter versus the 2004 third quarter were:

* Cabinets and Related Products sales increased eight percent;
* Plumbing Products sales increased four percent;
* Installation and Other Services sales increased nine percent;
* Decorative Architectural Products sales increased five percent; and
* Other Speciality Products sales decreased one percent.

Income from continuing operations was $262 million compared with $289 million for the third quarter of 2004.

Earnings from continuing operations were $.61 per common share compared with the Company's guidance of $.60 to $.64 per common share and compared with $.64 per common share for the 2004 third quarter.

The Company's 2005 third quarter results benefited from the strong new construction market and certain selling price increases, partially offset by continued increases in commodity, energy and freight costs, as well as product mix.

Gross margins were 28.7 percent in the 2005 third quarter compared with 29.4 percent in the second quarter of 2005 and 31.2 percent in the third quarter of 2004. Operating profit margins, as reported, were 14.0 percent in the third quarter of 2005 compared with 14.1 percent in the second quarter of 2005 and 15.5 percent in the third quarter of 2004. Excluding the pre-tax income regarding the litigation settlement of $1 million and $2 million in 2005 and 2004, respectively, operating profit margins were 13.9 percent in the third quarter of 2005 compared with 15.4 percent in the third quarter of 2004. Margins in the third quarter of 2005 were adversely impacted by increases in certain operating expenses, including increased commodity, energy and freight costs and product mix.

At the end of the quarter, the Company had a strong balance sheet with over $1.5 billion in cash and $2 billion in unused bank lines. The Company intends to use a portion of its cash to retire $800 million of 6.75% notes due in March 2006.

Full-Year Outlook

The Company is pursuing a variety of initiatives to offset cost increases and increase operating profit, including sourcing programs, the restructuring of certain of its businesses (including consolidations), manufacturing rationalisation, headcount reductions and other profit improvement programmes.

As previously disclosed, the Company believes these initiatives, which began in early 2005, will reduce annual costs by $200 million by the end of 2007. While the Company may incur expenses and charges related to these programmes, implementing these initiatives should improve the Company's earnings outlook for 2006 and beyond.

The Company believes that higher energy costs and recent trends indicating lower consumer confidence and the related slowing in sales of certain retail products will continue. Given these factors, together with recent additional commodity cost increases, most of which are not expected to be offset by selling price increases until the first half of 2006, the Company believes, based on current business trends, that fourth quarter 2005 earnings from continuing operations will be in the range of $.48 to $.52 per common share and that full-year 2005 earnings from continuing operations are expected to be in a range of $2.20 to $2.24 per common share compared with the Company's previous guidance of approximately $2.30 per common share.

Wolseley plc announced on November 1st that it has acquired William Wilson Holdings Ltd, a leading distributor of plumbing, heating and electrical supplies in the UK. The acquisition provides Wolseley UK with a substantial entry point into the electrical market.

Since the beginning of the financial year on 1st August 2005, a total of 11 distribution businesses in Europe and North America have been acquired for an aggregate consideration of approximately £317 million in cash. These 11 acquisitions are expected to add approximately £462 million to group turnover in a full year. Goodwill related to these acquisitions is estimated to be around £220 million.

Wolseley UK acquired William Wilson on 31st October 2005 from 3i and a large number of individuals and trusts. The acquisition is in line with Wolseley's strategy of expanding its European distribution operations into related construction materials. The cash consideration of £81 million will be financed from Wolseley's existing resources.

The William Wilson business
The company has approximately 600 employees and operates from a network of 45 trading locations in Scotland and the North of England. It is organised into two specialist divisions. The Plumbing and Heating Division, which accounted for 60% of turnover for the year ended 31st March 2005, has 20 locations and includes Scotland's largest bathroom showroom network with a total of ten outlets. The Electrical Wholesale Division has a network of 25 locations and accounted for 40% of the turnover for the same period.

Many of William Wilson's suppliers in its Plumbing and Heating Division are common to Wolseley UK's supplier base and this is expected to create opportunities for purchasing synergies. It is also expected that supply chain efficiencies will be created by utilising existing distribution centres.

The Electrical Wholesale Division will be expanded by an aggressive programme of branch openings which should provide additional scale benefits. The operational management of William Wilson will remain with the business and join the Wolseley group reporting to Adrian Barden, Managing Director, Wolseley UK.

Financial effects of acquisition
For the year ended 31st March 2005, William Wilson reported sales of £104.7 million and a normalised profit before interest and goodwill of £4.0 million. Gross assets at that date were £42.0 million. The business has achieved substantial growth in its current financial year to date. The acquisition is expected to be earnings enhancing from the outset. The return on gross capital employed is expected to achieve Wolseley's normal acquisition return target for a strategic acquisition.

Charlie Banks, Group Chief Executive of Wolseley said:
'We are delighted to announce this acquisition which further strengthens our presence in the UK market. As well as significantly expanding our operations in the North of England and Scotland, the acquisition of William Wilson enables us to develop our presence in these regions and to expand the range of construction products we distribute to now include electrical supplies. We remain committed to growing the business at double-digit rates through a combination of organic and acquisition growth.'

Wolseley plc, the world's largest distributor of heating and plumbing products to professional contractor markets and a leading supplier of building materials, announced on 19th October that it has, in principle, raised $1.2 billion through a private placement of fixed and floating senior unsecured notes (the 'Notes'). The transaction will refinance existing facilities that are due to mature within the next two years.

Following strong investor demand, the transaction was over double the Company's initial target, having expanded from $500 million to $1,200 million, making it the largest traditional private placement financing in recent history.

There are eight tranches, six at fixed rates, ranging from 3 to 15 years and two floating rates notes, for 3 and 7 years. All the tranches have bullet repayments.
Thirty-one institutions subscribed to the transaction, which is expected to close on 16th November 2005, subject to investor due diligence.

This transaction significantly diversifies the Group's debt funding away from bank debt and greatly increases the maturity profile of the Group's debt funding. The proceeds will be used principally to fund the Group's working capital and refinance existing debt facilities.

Commenting on the announcement, Steve Webster, Group Finance Director, said:
'We are delighted that our placement has been so well received by this new investor base. Our strategy to grow the business in fragmented markets both organically and through acquisition has delivered strong returns over several years. The placement allows us to diversify our debt funding away from bank finance. We view this market as an attractive source of long term debt capital. Investors in this market take a long term view of the growth prospects of the company and we are delighted in their positive response to our initial offering.'

ELECSA announced on 1st November that it has associated with market leader AMTECH Power Software to fully endorse its Part P software. This has been designed for ease of use by Engineers and Contractors who need to meet the requirements of Part P.

As lan Selinger, Commercial Manager, AMTECH, commented, 'ELECSA is a leading Part P scheme provider authorised by the government. We are continually looking at ways to improve our software and we are now very pleased to have our software fully endorsed by ELECSA.'

The range of Part P software from AMTECH includes Test and lnspection software which enables all BS 7671 certificates required by Part P to be easily printed.

Further information on AMTECH can be found at http://www.amtech-power.co.uk.
lnformation on Part P and the ELECSA scheme is located on http://www.elecsa.org.uk.

Yvonne Orgill, commercial director of the Bathroom Manufacturers Association, along with technical director Mike Rymill, attended the House of Commons launch of new water advisor body - Water Wise, which has been set up by the water companies.

As well as the government's schemes, BMA membership is endorsing the work being done by Water Wise with the launch of a new micro web site at January's KBB2006 exhibition. The primary aim of this work is to create initiatives that will re-educate water consumers on using the resource wisely in order to safeguard supplies of quality water for future generations.

One of the Industry's keenest proponents of qualifications, education and training over the years, Richard Moss, has taken the position of Head of Education and Marketing for the Bathroom Manufacturers' Association (BMA).

Moss entered the bathroom and kitchen industry as a retail showroom manager in 1976 and first took an interest in qualifications when, in 1992, as Editor of Bathrooms & Kitchens Magazine he was part of a working group led by Richard Crisp that created an NVQ in multi-skilled installation. The Bathrooms & Kitchens magazine became a key publication for passing on training to its readership of Bathroom & Kitchen designers and retailers.

In 1994 the magazine founded the Bathroom & Kitchen Industry Awards and towards the end of the 1990's Moss had included categories for Young Designers and for Students of Interior Design that were working on kitchen or bathroom schemes.

‘The sad thing is,’ says Moss, ‘that many of the young people that were entering these awards had HND, HNC and Honours Degrees in interior design and yet they had 'fallen' into our industry by chance, just as I did. There wasn't an education path for them to take to become bathroom retailers, sales people or designers.’

A trip around colleges that specialised in interior design showed clearly that the retail arm of the bathroom and the kitchen industry was not on the college's agenda.

‘The lecturers spoke of designing Theatres and Shopping Malls and Railway Stations,’ says Moss, ‘and expressed very little interest in teaching about domestic design, even though the job opportunities in bathrooms and kitchens were far more realistic.’

Roger Cooper, head of Ideal Standard in the UK, then invited Moss to manage the company's own training department and offered his support to work on wider industry qualification issues.

In 2003 Moss was asked to head the BMA working group on Qualifications, Education, Training and the association began to follow its current three stage policy on Qualifications for the bathroom industry.

‘Bathroom retailers and manufacturers are battling for business from the homes of Britain,’ Moss says, ‘we are up against some very well qualified competition and our sales force needs to be able to show that it is just as professional. The proof of a good qualification or certification scheme can only help us all to win more of that business.’

http://www.bathroom-association.org

AMA Research has published a comprehensive review of the UK Builders and Plumbers Merchants Market. The report is informed, incisive and up to date, looking in detail at the industry trends to date, as well as future opportunities and threats. The report represents an aid to sales and marketing professionals in, or interested in the industry.

The report analyses market sizes and trends, market structures, key company shares, the major companies positioning, along with a mi+x analysis of the major merchants, the larger regional merchants and the local merchants.

Also covered is, the mix of the major product sectors traded by the merchants with a review of each of these sectors, product mix, trends, major suppliers and the importance of merchants within the sector.

Emphasis is given to both qualitative and quantitative assessments of market developments, with interpretation of relevant data to give a view on future prospects. This 130+ page report is packed with relevant and useful information and analysis and is available now at £595.

The UK Builders and Plumbers Merchant market was worth an estimated £11.2 billion at merchants selling prices in 2004, an increase of 8% in value terms on the previous year. The merchants market has remained buoyant throughout 2003/4, boosted by an active RMI sector. However, initial indications are that the last quarter of 2004 and the first half of 2005 have experienced some slowing of the market. Current expectations are that value growth will be more restrained in 2005 at around 2-3%, resulting in an estimated value of approximately £11.5 billion by the close of the year.

The following table illustrates AMA's estimate of the performance of the builders and plumbers merchants market since 1998, with forecasts to 2008:-

The table indicates that the merchants market has continued to achieve good annual value growth in the last 5 years, averaging annual rates of 3-9% between 1999-2004. The buoyancy of the market since 2003 has been maintained by the health ofthe RMI sector, both the private domestic RMI sector and the public sector increased spending on health, education and housing refurbishment programmes. Consumer confidence and spending levels continued to be relatively buoyant during 2003/4, but successive interest rate rises and a slowing of the housing market mean that the merchants market is likely to experience a lower level of growth in 2005.

Although remaining a key part of the merchants sector mix, new housebuilding volumes have been subdued over the past 5 years. lndications are that completions levels rose to around 180,000 in 2004 but this is still below the annual average of 200,000 units a year proposed by central Government in order to address the UK's housing needs into the 21st Century. In addition, many housebuilders are reporting that the conditions in the market in the first half of 2005 remain difficult.

Raw materials prices have remained problematic for the merchants in 2003/4. The world price of oil remains a significant problem not only because the price of oil derived products such as plastics have had to rise, but also merchants are involved in distributive trades and logistics margins can be seriously affected by the constantly increasing price of fuels. Prices of other materials have also been affected by increased global demand, particularly from China and there have been some product shortages due to rationalisation and re-organisation in some leading suppliers. Timber prices have again begun to rise following the recovery in the demand side of home markets of large producers such as the USA. This follows on from a period of reduced capacity, which has led to price rises as shortages in products such as panels have occurred.

A key factor affecting prices has been the huge demand for all types of building products from China to fuel its industrial, commercial and domestic building programmes. Metals in particular have been affected by increased Chinese demand and the price of both ferrous and non-ferrous metals in global markets has soared. In the UK this has meant that the market has been unable to absorb these increases and merchants have been forced to pass on price rises to their customers.

The consolidation process ofthe UK merchants market has continued throughout 2003/4 with the leading group of 5 national merchants now accounting for an estimated 65% ofthe market. The balance of market share is held by regional and local companies, reflecting the key service offered by merchants, i.e. a local supply of a wide range of commodities to a large number of small and medium sized builders and plumbers.

Competition within the building supplies market has intensified with specialist distributors and DIY multiples continuing to pose significant threats to the merchants sector. However, the recent acquisition of Wickes by Travis Perkins has also highlighted the potential for the DIY market for future expansion by merchants. Another threat to the merchants is the continuing success of the catalogue/mail order/web-based building products suppliers such as Screwfix.

AMA Research
Tel: + 44 (0) 1242 235724
Email: marketing@amaresearch.com
Web: http://www.amaresearch. co.uk

Waterline has launched the new-look, new-specification Essentials range of built-in appliances, which says the company, sets new standards for the entry price-point sector. Offering angular styling in stainless steel for the latest contemporary look, Essentials is the complete solution for an economy kitchen fit of cooking, cooling, dishwasher and home laundry products.

Waterline has raised the bar on oven specification with three new 60cm single electric models, including the multifunction EDM60 with 8 functions. Meeting growing demand for built-in microwave ovens to match other cooking appliances is the new MUK23 900W-output model with five power levels.

In addition to four- and five-burner gas hobs, Essentials now offers a wide choice of electric ceramic hobs, including 60cm and 70cm models with touch control plus 'the cheapest induction hob on the market'.

The best prices available are also claimed for Essentials built-under larder fridge and freezer units. Fully integrated, tall 70/30 and 50/50 fridge-freezers are also offered. The new DW006 integrated dishwasher is to a high specification with Class A energy efficiency rating. The 60cm wide 12-place setting machine offers consumers simplicity in use with 3 programmes and 3 wash temperatures.

The Essentials home laundry range has been expanded to include a 6kg load capacity integrated tumble dryer in addition to the washing machine and washer-dryer.

Cooker hoods for extraction or recirculation in a choice of designs and sizes complete this 'new benchmark value appliance offer', supported by a brochure.

Tel: 0870 5561560
Web: http://www.waterline.co.uk

Geberit's Investment in Retail

Geberit has introduced a specialist sales team to call on retailers to develop awareness, increase displays and staff knowledge on Geberit bathroom related products. This sales team has selected around 50 Specialist retailers and is planning to have 100 by the end of this year. All have extensive, high quality bathroom displays including the Geberit Duofix frame system for wall hung sanitaryware (pictured).

The Specialists are appreciative of the dedicated sales team which helps with displays, advise on any problems, provide the latest product and market knowledge and also introduce new products to the Specialist team. The sales team also gives training and advice to installers using Geberit products and attends site visits if assistance is required.

The Specialist Retailer Club offers a support package which includes displays, display material, technical and professional advice, service support, installer training, sales leads and listing on the Geberit website and proven, quality products.

The retailers chosen are all high quality showrooms selling quality products. Feedback from those attending a recent Specialist Retailer seminar has been that 'Geberit is providing an excellent service with first class products' and they are selling wall hung products with the Duofix system as their first choice sale.

Geberit Duofix is an all in one, pre-fitted system complete with cistern and connection pipework already built into the frames and eliminates the need for difficult to fix chairs or brackets to support the sanitaryware. It is available in full height, low height or corner versions and can also be fixed with the Geberit system rail which requires just two floor and two wall fixing points for the easiest of fixing with total stability and rigidity.

The Geberit Specialist Retailers and their associated plumbers have all attending a training seminar either at the Geberit Training headquarters or in their own showroom, and all now have displays of the Duofix frame system, flush plates and other Geberit products.

Geberit says that since its investment in the training, the knowledge of the showroom staff and installers has dramatically increased in relation to Duofix and wall hung systems and retailer confidence in Geberit products has escalated. As a result sales of Duofix and Geberit products have soared within these showrooms.

Two new additions introduced in response to feedback from retailers include a new flush plate called Bolero, a new range of wastes and traps and a direct spares service for Duofix for those items that get mislaid on site.

Maytag UK is supporting the launch of its new 60 series laundry and dishwashing appliances with consumer promotions from now until the year-end.

From 15th October through to the 31st December 2005, Maytag is offering a free 5-year parts and labour guarantee on its recently launched 60 series washing machines, tumble dryers and dishwashers. There is a further consumer incentive with a £100 cash-back offer when purchasing a 60 series washing machine and tumble dryer together.

Julie Blaylock, Sales Director explains,

‘The new 60 series is a great addition to Maytag, offering the retailer a premium range of laundry and dishwashing appliances with exceptional build quality and market leading features. The top of the range Vara dishwasher uses only 9.9 litres of water in the standard programme; we believe this to be exceptional today.

'And the top of the range washing machine has an induction motor for great reliability and an 1800 spin. We are very excited about the new range and in an effort to support our retail partners in the run up to Christmas we are hoping these two superb consumer promotions could make for an even better one.’

Focused point of sale material and new Maytag brochures featuring the new appliances are now available. For further information on Maytag's promotions call your Area Sales Manager or Maytag UK on 01737 231000.

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

Shower surround and bath screen manufacturer, Aqualux aims to make the run up to Christmas a little easier by offering trade promotions on three of its most popular products.

The Euro Pivot Door and Side Panel is being offered to trade customers on a ‘buy 50 and get ten free’ deal.* Aqualux is also offering a Walk-In and a Curved Glass Quadrant enclosure at special net prices based on ordering quantities of five.*

The 760mm x 760mm Euro Pivot Door and Side Panel combination pack is designed along clean lines with a white frame finish and contemporary patterned glass, and because of its size is a good space saving solution.

The popular Walk-In enclosure features easy installation, an integral towel rail and can be fitted for left or right-hand use. The enclosure has a polished silver effect frame with 6mm toughened clear glass and is 1400mm 1900mm high. It also has a glass reinforced plastic tray for increased strength.

Also available to buy on bulk discount is the new Curved Glass Quadrant,* featuring gel magnet door closing, easy installation, removable doors for easy cleaning, 6mm toughened glass for extra safety and is available in polished silver. Both the Walk-In and Quadrant offer flexible fitting with 20mm adjustability for out-of-true walls.

The Curved Glass Quadrant is available in sizes 800 x 800mm and 900mm x 900mm, while the Walk-In is available in polished silver and is 1400mm x 900mm.

*Offer on Euro Pivot Door ends 31st December 2005
*Offer on Walk-In and Curved Glass Quadrant available while stocks last

Call Aqualux or your local area sales manager for more information on these on: 0870 241 6131 or visit http://www.aqualux.co.uk

In August 2005 the implementation of Directive 2002/96/EC on the collection and recycling of waste from electrical and electronic equipment (WEEE) was postponed until next year. Producers will soon have to finance the collection, treatment, re-use, recovery and environmentally sound disposal of WEEE. What does this mean for plastics producers?

This measure will stimulate OEMs (Original Equipment Manufacturers) to design electrical and electronic equipment in an environmentally more efficient way, taking waste management aspects into account. These product design changes have a number of consequences for the plastics industry.

We will see a gradual reduction of the variety of plastics used in European products. The more plastics a product requires, the more expensive it is to recycle it. Furthermore, the variable 'recyclability' will become increasingly important.

Since some essential plastics in European products are difficult or expensive to recycle, it is crucial plastics producers support the development of recycling technologies that will make the recycling process both simpler and more cost-efficient.

However, the new requirements of the OEMs are also a marketing opportunity for the plastics industry. Producers will gain business by improving and demonstrating the recyclability of their products. The European market is also characterised by a stable growth and a continuous demand for plastics.

Some best practices
It is important to note that there are industry examples of efficient waste management, put in place even before the directive was implemented on a national level.

In France for instance the first platform for the complete management of WEEE was set up on 24th May. By 2008, the treatment centre in Lesquin will recycle 225,000 fridges, 140,000 screens, 2,000 tons of small household devices and 1,500 tons of computers per year.

In Spain, El Pont de Vilomara has become one of the most advanced European centres of WEEE treatment. Pilagest SL recycles batteries and fluorescent lamps, a Centre for treatment and recycling of refrigerators dismantles fridges and recuperates gas and Electrorecycling is specialised in the recovery of electronical equipment.

Businesses involved in price-fixing, market-sharing, bid-rigging or other cartels can wipe the slate clean and remove the risk of severe penalties, says the Office of Fair Trading.

Tuesday was the start of 'Come Clean on Cartels' month - a campaign by the OFT to make businesses - especially small and medium sized enterprises (SMEs) - aware of the OFT's leniency programme which allows firms involved in anti-competitive practices such as price fixing and bid-rigging to blow the whistle on the cartel and receive partial or even total immunity from fines.

Businesses who want to report suspicions about a cartel, or who want advice about cartels, can call the OFT's hotline on 020 7211 8888. Formal applications for leniency should be made by calling 020 7211 8117.

New research reveals that 40 per cent of SMEs owners believe that smaller firms who are involved in anti-competitive practices would be more eager to come forward and report their activity to the authorities if they knew that they could avoid or reduce the fines they risk.

Philip Collins, OFT Chairman, said:
'November is 'Come Clean on Cartels' month. We want to urge businesses, especially SMEs, to make a clean break with any anti-competitive agreements they may be involved in. Such activities are illegal, and can result in a fine of up to 10 per cent of turnover of a business, or even a prison sentence in the most serious cases. We want to tell them about our leniency programme and make small and medium sized firms in particular aware that they have a chance to come forward and reduce the penalties that they could face or avoid them altogether.

'SME's form the dominant part of the economy and we want to ensure that they operate in competitive markets - it is consumers who pay the price for businesses colluding in cartels in the form of higher prices, less choice or lower levels of innovation.'

The OFT research reveals that a quarter of SMEs in the UK feel that they have been a victim of anti-competitive practices and a third are aware of such practices in their own industry.

To date, the OFT has received 88 approaches under its leniency programme. However, this does not represent the actual number of investigations. In some cases approaches are received from several companies in relation to a single investigation, and not all applications result in a Competition Act investigation.

'Come Clean on Cartels' month is part of the OFT's 'Championing Competition' campaign to promote competition to small and medium sized enterprises.