Kitchen and Bathroom News @ The K&BZine

American Standard Companies Inc. has announced that its board of directors has completed a strategic review of the company and unanimously approved a plan to separate its three businesses this year.

'The board has concluded that separating American Standard into three focused, better understood companies will create greater shareowner value than the current structure,' said Fred Poses, chairman and CEO. 'The businesses have the size, global reach, industry leadership and organisational talent to succeed as separate companies.'

Upon completion of the plan, American Standard will focus on its global market-leading air conditioning systems and services business with 2006 sales of $6.8 billion and will change the company’s name to Trane, the company’s flagship air conditioning brand. The company plans to spin off its global vehicle control systems business with 2006 sales of $2.0 billion as an independent, publicly traded company, expected to be known as WABCO. It plans to implement the spinoff through a tax-free stock dividend of all its common stock to American Standard shareowners, who would receive one share of WABCO common stock for every three shares of American Standard common stock currently owned. In addition, American Standard plans to sell its bath and kitchen business with 2006 sales of $2.4 billion. The company expects to complete both the spinoff of WABCO and the sale of Bath and Kitchen by early autumn of this year.

'We’ve come a long way since the company went public in 1995,' said Poses. 'Over the past 12 years, we’ve generated average annual total shareowner returns of about 18 percent. Over the past seven years, we reduced our debt by more than $1 billion, achieved investment grade ratings, and established our quarterly dividend and subsequently increased it. At the same time, we invested in our businesses to strengthen their overall capabilities.

'Looking to the future, our board concluded that the separation plan we are announcing today is the best way to enhance shareowner value,' said Poses. 'Operating separately, the businesses will benefit from greater strategic focus, increased market recognition, improved capital flexibility, and an increased ability to attract, retain and motivate employees.'

This plan is part of an ongoing effort to rebuild the profitability of the Bath and Kitchen business and continue to build its global competitiveness.

'Unrelated to this, and announced as part of our continuing effort to rebuild the profitability and continue to build the global competitiveness of our Bath & Kitchen business'

American Standard also announced plans to eliminate between 210 and 250 jobs within its Bath and Kitchen business in Europe. More specifically, this will result in the closing of the Bath and Kitchen assembly and logistics operations in Wolverhampton, UK, with the loss of 106 jobs at that facility. Full consultation with Wolverhampton trade union representatives will begin immediately. The company will be starting a period of collective and individual consultation over the next days.

'The loss of these jobs is a difficult choice to make, and we will do all we can to ease the transition for everyone involved.'

'The possible loss of jobs in Wolverhampton is a difficult choice to make, but it is necessary regardless of the business’s ownership. While we can’t predict any future changes under new ownership, we do know that delivering the best possible financial and operational results now will position the best possible outcome for the people of Bath & Kitchen. We will do all we can to ease the transition for everyone involved.'

Details:
'We have informed employees of a proposal to close all operations in Wolverhampton by the end of 2007.'

'This includes a proposal to transfer our fittings assembly production from Wolverhampton to other plants in our company that are larger, better suited for efficient assembly and have available capacity for this work. We also plan to continue centralising UK distribution in Rugeley and will move distribution of all fittings from Wolverhampton to Rugeley as part of this initiative.

'Should this proposal go through, this will, unfortunately, result in the closure of the Wolverhampton site resulting in the loss of approximately 106 jobs by the end of this year. Some jobs, such as those in new product development, may be able to transfer to Rugeley.

'We have shared this proposal with the appropriate Works Councils.

'This is difficult news for everyone, employees and the community alike. We will do all we can to ease the transition for everyone involved by offering affected employees will be offered outplacement support, job retraining and other assistance.'

• All affected employees have been notified as appropriate and in line with consultations with the European Works Council and local trade unions.

• We anticipate that a total of some 30 jobs will be added in Rugeley bringing total employees in the UK to over 2,000.

• We don’t make these kinds of plans easily, particularly when the livelihoods of our people are affected. But we believe these steps are essential to rebuild the profitability and global competitiveness of our Bath & Kitchen business, and particularly important given the increased pressure that our business is facing.

• Consolidation will lower our costs and improve our production efficiencies while ensuring a seamless transition for our customers, which means we will:
* continue offering our customers high-quality products at competitive prices;
* continue to employ more than 2000 across the UK.

• These changes will allow us to simplify our business and offset the:
* Dramatic increases in the cost of raw materials including gas, copper and other commodities
* Increased competition due to industry outsourcing and manufacturing in low-cost countries.

American Standard Achieves 8% Sales Growth in 2006

American Standard has announced its Results Summary for 2006, First Quarter results for 2007, and estimates for the rest of the year, ‘We had a good year,’ said Poses. ‘Earnings for the air conditioning and vehicle control systems businesses were powerful enough to overcome lower earnings in our bath and kitchen business. We did fall short of our cash goals because of the timing of receipts and some inventory build-up in air conditioning, but expect to recover much of the cash in the year ahead.

‘For 2007, we are providing estimates for the company as currently structured without considering the impact of the planned spinoff or sale or related separation expenses. On that basis, we anticipate sales growth of about 8 percent in constant currencies and net income per diluted share of $3.15-$3.25 on both a GAAP and adjusted basis, representing an increase of 20-24 percent on a GAAP basis and 18-22 percent on an adjusted basis. These estimates are driven by continued strength in commercial air conditioning systems and services and an improvement in the residential air conditioning market despite lower housing starts, coupled with continued strength in vehicle control systems and some improvement in the bath and kitchen business,’ said Poses. ‘We will provide a broad overview of markets, plans and financial projections for each of our businesses at our annual analyst and investor meeting on February 15th in New York.

‘For the year, we expect to generate about $950 million in net cash provided by operating activities and about $650 million in free cash flow for the company as currently structured,’ Poses said.

‘For the first quarter, sales should be up about 6 percent and net income should be in the range of 45-49 cents per diluted share on a GAAP basis and 48-52 cents on an adjusted basis,’ he said. In first quarter 2006, net income per diluted share was 40 cents on a GAAP basis and 43 cents on an adjusted basis.

Separation Plan

The sales process for the company's bath and kitchen business is expected to begin this month. Proceeds from the sale are expected to be used to reduce the liabilities of the remaining company (Trane) and to repurchase Trane's common stock.

Until the sale and spinoff are completed, American Standard expects to continue to pay its quarterly dividend of 18 cents per share. Trane and WABCO are expected to have capital structures and financial policies consistent with investment grade ratings. The company expects that Trane and WABCO will initially pay dividends that in total approximate the dividend currently paid by American Standard. However, once WABCO is spun off, its board will determine its dividend policy.

Trane's headquarters will remain in Piscataway, N.J., and the company will continue to trade on the New York Stock Exchange (NYSE) using a new stock symbol to be announced later. WABCO will be a U.S. company, with executive and administrative offices in Brussels, Belgium, and Piscataway. It is also expected to be listed on the NYSE.

The company will retain the right to use the American Standard brand name for its heating, ventilation and air conditioning (HVAC) products.

Completion of the proposed separation is subject to final approval by American Standard Companies' board of directors. The WABCO spinoff is also subject to receipt of a favourable ruling from the Internal Revenue Service and a favourable opinion of tax counsel as well as the filing and effectiveness of a registration statement with the Securities and Exchange Commission. Approval by American Standard Companies shareowners is not required for either the spinoff or sale. When implemented, the separation plan will not trigger ‘change-in-control’ accelerated benefits for any officers or employees of the company. The company is communicating with the European Works Council about the board's strategic review and intent.

The company has engaged Lazard as its financial advisor and Skadden Arps as its legal counsel.

Leadership Of The New Businesses

Fred Poses will continue as chairman and CEO through 2007 as planned, and an internal and external search is under way for his successor. The current directors of American Standard Companies, with the exception of lead director Jim Hardymon, are expected to continue as board members of the company when it changes its name to Trane. Hardymon, in accordance with the company's governance guidelines, will retire from the board in May 2007. Leaders of Air Conditioning Systems and Services - Craig Kissel, president of commercial systems, and Dave Pannier, president of residential systems - continue in their roles.

Jacques Esculier, president of Vehicle Control Systems for the past three years, will become CEO of the independent, public company to be known as WABCO.

Hardymon will serve as WABCO's non-executive chairman. Hardymon, a former chairman and CEO of Textron, has served on 10 corporate boards and as chairman of three NYSE-traded companies. Pete D'Aloia, American Standard's chief financial officer, will continue in his role and also become a WABCO board member.

Dale Elliott, president of global Bath and Kitchen, will continue in his role, as will the regional business presidents: Don Devine - Americas, John Rietveldt - Europe, Middle East and Africa, and Richard Ward - Asia Pacific.

Fourth-Quarter 2006 Business Highlights

BATH AND KITCHEN sales were $585 million, up 1.6 percent (down 3.2 percent excluding foreign exchange effects). Segment income represented a loss of $3.7 million, down from income of $0.5 million in fourth quarter 2005. The benefits from improved pricing, prior operational consolidations and materials productivity could not overcome the effects of higher commodity costs, decreased unit volume and lower conversion productivity as compared with fourth quarter 2005. Excluding the favourable impact of foreign exchange as well as operational consolidation expenses, adjusted segment income was $1.3 million, compared with $6.9 million in fourth quarter 2005.

‘Under its new management team, Bath and Kitchen is making progress in driving growth, gaining productivity and implementing its restructuring plans. We expect the benefits of these positive trends will be more evident as we move through 2007,’ Poses said. ‘As part of our initiatives to rebuild Bath and Kitchen's profitability, we have announced plans to consolidate manufacturing operations and sales functions in Europe. These plans will result in the elimination of about 210-250 jobs. These actions will cost about $29 million ($19 million after taxes) and, once completed, will generate annual savings of about $14 million. We will start to see some of the savings this year. We very carefully consider any plans that affect people's jobs and believe these and any possible future actions are essential to improve Bath and Kitchen's profitability and continue to build its global competitiveness.'

During the quarter, Bath and Kitchen received two awards from The Home Depot: Vendor Partner of the Year for bath and kitchen products in Canada and Expo Design Centre Partner of the Year in the plumbing category. The business launched the Jado IQ contemporary luxury faucet line designed by Matteo Thun in showrooms throughout the U.S. and completed the redesign of about 70 showrooms across Asia with its new retail environment.

As part of its productivity improvement initiatives, Bath and Kitchen reduced 25 percent of production moulds in Asia and completed a plant closure on schedule in Europe while improving fill rates.

Web: http://www.americanstandard.com

Althea UK Ltd has relocated from its original Bradford premises to a new office, showroom and manufacturing complex in Dewsbury, West Yorkshire.

Althea, established by Managing Director Trevor Robinson (51), has built its reputation on sourcing and supplying the finest Italian bathroom products to a wide range of clients, including house builders and developers, hotels, restaurants, public houses, local authorities, hospitals and the prison service.

The product range combines elegance and manufacturing quality with an Italian flair for design creativity.

The range comprises wash basins, bidets, WCs, baths, showers and accessories, which can be provided complete with bespoke bathroom furniture manufactured at the Dewsbury premises.

Distribution is handled from separate logistics premises in Brighouse, where literally thousands of items are stocked, for overnight delivery to anywhere in the UK.

Trevor Robinson has a passion for design, plus a personal mission to promote the pick of Italian bathroom products and commented:

‘It used to be the case that only the high flyers in society, able to stay in the grandest hotels or dine in the most exclusive restaurants, could routinely experience the pleasure of living with top quality interior design.

‘It came as a real eye-opener for me to discover that it need cost no more to manufacture bathroom products with a real 'wow factor' than it does to produce the more usual, run of the mill items.

‘Everyone at Althea takes enormous pride in the fact that our stunning Italian products are not only highly desirable, but highly affordable too'.

Further Information: Barbara Holmes, National Sales Manager
Tel: 01924 439952.
Email: barbara@altheauk.com

The Kitchen Bathroom Bedroom Specialists Association has launched its Design Innovation Awards for 2007 and is calling on all designers to enter.

All design award winners receive a cheque for £1,000, an engraved trophy and a certificate. They and their partner are also invited to attend the awards dinner as guests of their sponsor and overnight accommodation is also provided.

All other finalists are invited to attend the awards dinner as guests of their sponsor and they receive an engraved trophy and certificate.

'We have made the awards simple and easy to enter and designers have until 1st May to submit their entries,' says KBSA operations director Lucinda Kenny.

'Entry forms have been mailed out to members and distributed with one of the key trade magazines. Designers can also download the form from our website and can even email their entries to us!'

The awards presentations will take place at the fabulous five star De Vere Grand, Brighton on 21st June.

'Winners and finalists will enjoy a fantastic evening with us and then benefit afterwards from the substantial publicity that we generate both locally and nationally on their behalf.

'Previous winners have told us how winning an award has proved to be a real boost to their business and many designers do not realise that you do not have to be a KBSA member to enter.'

There are four design award categories, for the kitchen, the bathroom, the bedroom and a new kitchen designer.

Two excellence awards are also offered in addition to the design awards. The KBSA Retailer Excellence Award is only open to KBSA members and they are automatically entered for this award.

The KBSA Supplier Excellence Award was created to recognise those suppliers who provide the best service to their dealers. Dealers can nominate a supplier via the KBSA website or the monthly KBSA newsletter.

'We know that there are some great designers out there and we sincerely hope that we can encourage many of them to put forward their designs for judging. Awards like ours and others provide our industry with a valuable opportunity to promote excellence and reward talent, a worthy aim for us all.'

Jacuzzi Brands, Inc. announced on February 7th that affiliates of Apollo Management, L.P. (‘Apollo’) have completed the acquisition of Jacuzzi Brands. As previously announced, on October 11th, 2006, the two companies entered into a definitive merger agreement, pursuant to which Apollo would acquire all of the outstanding common stock of Jacuzzi Brands for $12.50 per share in cash and assume all outstanding debt, valuing the total transaction at approximately $1.25 billion.

Alex P. Marini, Chief Executive Officer of Jacuzzi Brands, will have a continuing role managing both Jacuzzi Bath and Zurn Industries following consummation of the merger. George M. Sherman, co-investor with Apollo, and Non-Executive Chairman of Rexnord Corporation and former President and CEO of Danaher Corporation, has assumed the role of Non-Executive Chairman of Jacuzzi Bath.

Mr. Marini said, ‘We are confident that as a private company, and combined with George Sherman's vast industry experience, Jacuzzi Brands will be better positioned to operate in the highly competitive and capital-intensive global bath and plumbing industries. Our customers will continue to receive the high-levels of service, product quality and innovation that they have come to expect from Jacuzzi Brands, as our commitment to serving their needs remains steadfast. On behalf of Jacuzzi Brands' Board of Directors, I want to thank our stockholders and hard-working employees for their support throughout this process.’

Larry Berg, a Senior Partner at Apollo, commented, ‘We are pleased to have completed the acquisition of Jacuzzi Brands. We look forward to working with George Sherman, the Zurn and Jacuzzi management teams and their dedicated employees to continue providing high quality products and services.’

Jacuzzi Brands stock ceased to trade on the New York Stock Exchange at market close in February 7th and were delisted. Under the terms of the agreement, Jacuzzi Brands stockholders are entitled to receive $12.50 in cash for each share of Jacuzzi Brands common stock that they hold. The paying agent appointed by Jacuzzi Brands will mail a letter of transmittal and instructions to all Jacuzzi Brands stockholders of record. The letter of transmittal and instructions will contain information on how to surrender Jacuzzi Brands common stock in exchange for the merger consideration, without interest. Stockholders of record should be in receipt of the letter of transmittal before surrendering their shares.

Stockholders who hold shares through a bank or broker will not have to take any action to have their shares converted into cash as such conversions will be handled by the bank or broker.

Established 1947 in Eskisehir by Metin Sürel and still in the ownership of the family until the acquisition by Candy Group, Doruk Ltd.-STI remains a market-leader in Turkey with Süsler-branded household appliances.

The key products are hobs and ovens for built-in, and freestanding cookers in a wide range of sizes and performances. In 2006, 335,000 units were produced for domestic and export markets. The 2006 overall output amounted to 535,000 units.

Products include wall gas boilers, electrical water heaters, radiators, solid fuel stoves, and hoods. The range that places Süsler at the top of the market is its popular range of cast iron ‘decorative’ stoves, built in the traditional shape and style.

Last year saw 55 percent of Doruk's 2006 output exported to 34 Balkan countries, to Russia and the bordering republics, and to Magreb countries (Tunisia, Algiers and Morocco).

The modern headquarters and manufacturing facilities of Doruk-Süsler are were built in the nineties and are located in the Organised Industrial District of Eskisehir, a town of 700,000 inhabitants in the Asian part of Turkey, about half way between Istanbul and the capital Ankara and not far from Bursa, the main Turkish port. The company has 46,000 sqm spread over a total area of 80,000 sqm. Staff count is 650.

‘In the Eskisehir plant we found the best answer to our industrial needs,’ added Silvano Fumagalli, CEO, Candy Group. ‘The production of hobs and built-in ovens will continue alongside a wide range of freestanding cookers. These products will be targeted at both the domestic and export markets. The layout and size of the site will allow us to respond to the expected growth in the internal and export markets for Süsler products.’

The sales organisation in Turkey is structured in three districts (Istanbul, Bursa, Izmir) and covers the whole of Turkey. A network of 300 service centres provides after-sale assistance.

Turkey has a significant presence in the production of household appliances, due to a pool of skilled labour and a strong supply chain. Turkey also benefits from a growing economy and a fast developing market for household appliances: the market counts 5.4 million of units. It has more than doubled in the past 10 years. Today, there are around 18 million households in Turkey: the growth rate is of 2.4 percent and appliances are seen as a key component of improving standards of living.

Italy is the third commercial partner of Turkey: the ICE (Italian Institute for Foreign Trade) data point out an interchange of $13.9 million in the period January-November 2006 (+25.2 percent in comparison with the same period of the previous year). Italy is the third largest household appliances supplier to Turkey (after China and Germany) and it is the sixth largest market for the Turkish exports.

Kitchen company Magnet has invested £1 million at its site at Allington Way, Darlington, creating another 40 jobs.

Magnet has expanded its activity to encompass the warehousing and distribution of joinery products. This is in addition to its Kitchen manufacturing and distribution operation.

The £1m investment has been made in facilities at the site to enable the expansion to happen. This has created an additional 40 jobs all of which have been given to local people. This investment follows a £5m investment in manufacturing made at the site during 2005 and a re-fit of the local kitchen showroom on John Street.

Paul Knowles, Project Director said: 'I am particularly pleased that we have found employment for a number of local people as well as being able to outsource work locally too. The building works were undertaken by contractor, Richardson Construction and professional advice taken from The Architects Design Group. Darlington Borough Council was fully supportive in releasing land and providing advice on traffic movement'

The Darlington site now employs over 600 people. Since being acquired by Nobia, its Swedish parent, the site has created nearly 100 jobs.

For further information visit http://www.magnet.co.uk or call 0845 123 6789 for store details and brochure requests.

Sinks, taps and accessories manufacturer, Reginox UK, is celebrating its best year to date with 2006 sales up by 29% in comparison to 2005. Whilst exact turnover figures remain undisclosed, Dave Mayer, Reginox UK's sales and marketing director, confirmed that the company has had its most successful year since it was formed in 1999.

Dave attributes the substantial growth to the launch of Reginox's extended range in January 2006, combined with the company's decision to focus greater effort on the contract market. He comments, ‘We doubled our product offer when we opened up the full Reginox worldwide range to the UK market at the beginning of last year, giving customers access to a whole host of new styles and designs. KBB 2006 provided us with the ideal opportunity to showcase the new range to retailers and, despite a generally tough year within the retail sector, resulted in a considerable amount of new business.

‘The extended range has also opened up additional opportunities for Reginox UK with contractors and developers. We work with many of the UK's house builders and in the past 12 months have won new contracts from developers including Crosby Homes, Morris Homes and Bellway Homes. The contract market remains buoyant and we foresee that our main opportunities for business growth lie within this sector.’

Previously Reginox's sales have been driven by agents in some areas of the UK, but the company's significant growth has led to the appointment of two new regional sales managers. Colin Pugh has joined as Southern regional sales manager and Duncan Hornett takes up the position of regional sales manager for the North of England. Both have extensive industry experience: Colin was previously contract sales manager at William Ball and also worked for 21 years at Galley Matrix; Duncan joins Reginox from Mayfair Brassware where he was national accounts manager.

Dave Mayer concludes, ‘Reginox set ambitious targets for 2006 and we exceeded these by the end of the third quarter. With the new range now firmly established and the addition of Colin and Duncan to our sales team, we are better placed than ever to go for even greater growth across 2007.’

Tel: 01260 280 033
Email: sales@reginox.co.uk
Web: http://www.reginox.co.uk

RAK Ceramics has moved UK headquarters to an enlarged complex based in Petersfield, Hampshire. For the first time putting all RAK UK's facilities under one roof, 'Paris House', as it is known, extends to over 52,000 sq ft and is the new base for UK sales and marketing, accounts and Southern Counties' logistics and warehousing.

In addition, a 7,000 sq ft air-conditioned showroom is being built, in conjunction with a dedicated product training area. The wholly owned site is the latest in a number of major capital investments made by the sanitaryware and tile manufacturer; these include the launch of two new regional distribution operations, RAK UK Midlands and RAK UK West.

Rob Jull, RAK Ceramics UK Managing Director says, ‘There is a direct correlation between our move to one site and an improvement in customer service and facilities. Being next to the A3M means better transport links but also the new 7,000 sq ft showroom and new training centre will give our dealers access to far better product knowledge and marketing support. The installation of a new £100,000 CNC machine for porcelain top fabrication will quadruple our production substantially reducing customer delivery times. Our new communications system with our two branches will speed stock information. All this will be essential to handle the numerous new product launches in 2007.’

Other than the new address of Paris House, Frenchman's Road, Petersfield, RAK Ceramics keep all previous contact details - telephone 01730 815507; fax 01730 815007; http://www.rakceramics.co.uk; info@rakceramics.co.uk.

David Cohen-Skalli, managing director of FagorBrandt International Operations has announced the promotion of Richard Walker from marketing director to sales and marketing director for FagorBrandt UK. His promotion is in recognition of the knowledge and skills he has brought to the company, since joining in 2006.

Mr Walker's new role heading up both sales and marketing teams brings a harmonised approach between the functions of each department with a clear direction. As the UK brands, De Dietrich and Fagor, continue to go from strength to strength, he is committed to ensuring that all customers are provided with the utmost service and support in every aspect of their dealings with the organisation.

This will work alongside a new business drive to increase the level of dealers and distributors who are committed to the two brands, thus ensuring consumers in all areas of the UK will have the best access to both De Dietrich and Fagor products.

With regard to the brands, Richard has already played a leading role in the development of both product ranges. The recently launched Fagor 2007 range is specially tailored for the UK consumer in terms of both specification and design, with products which outperform other appliances at the same market position. For the first time he has put in place a strategic advertising campaign promoting the 'inspired style' of the brand.

The position of the De Dietrich brand is already being enhanced by a consumer advertising campaign promoting the 'style and innovation' of the products.Richard has also begun developing the De Dietrich product range in order to meet the highest aspirations of both customers and consumers in terms of design, performance and innovation, and invites all De Dietrich customers for their comments and feedback, which is essential in developing a market driven range.

In order to maximise its service to dealers, the sales and marketing teams are being strengthened. A further commitment is being made to increase customer knowledge through better training, training facilities, and methods of training for dealers.

David Cohen-Skalli says:
'Richard will be strengthening the sales and marketing team, to support our customers and to implement the increased marketing activity we will be undertaking in 2007 for De Dietrich and Fagor. Richard joined us at the beginning of 2006, and his excellent understanding of the brands, the market and the competition has hugely enhanced our business already. His additional role overseeing the sales teams will mean further co-ordination of brand strategies from product design and development all the way through to the end user.'

Designer Mark Wilkinson was presented with the Special Achievement Award for his work in developing fitted furniture design, manufacture and retailing, at the kbbreview Industry Awards, which were held at the Grosvenor House Hotel in Park Lane, on Monday 5th February.

Founder of Mark Wilkinson Furniture in 1981, Mark Wilkinson is considered to be one of the finest designers of our time and - these days - works in many different product fields. Spanning from the kitchen and bathroom sector, where he has a designed number of Guild Marked ranges of fitted furniture, plus taps, range cookers, ceramic ware, original home arts - like the unique Marilyn jewellery cabinet he is seen with here. Mark Wilkinson has also designed a number of pieces of freestanding furniture, such as the soulful stepped dining table and the fantastic Cloak chairs.

His design work has branched in diversity to domestic and commercial furniture, interiors and gardens - and he has his own designs of clothing, shoes, wall paper and paints.

It is thirty years since Mark Wilkinson moved away from his first business of furniture renovation and; created the Country Kitchen, which was the catalyst for the formation of Smallbone of Devizes, a company in which he is a major shareholder today.

His early work proved a milestone design and set a new mode for kitchen styling, which was instrumental in creating the changes that have led to our modern way of life. Mark Wilkinson is a designer of great heart and, after Wilkinson, the kitchen became the heart of the home. His design also provided an impetus that set in motion an industry of small to medium sized manufacturing and retailing companies throughout the breadth and length of Britain.

‘Beauty is in the Heart of the Creator and the Eye of the Beholder’ - Mark Wilkinson

Those early days saw his steady evolution from craftsman to creator with some of his most spectacular design work such as the Saw-Blade Table, in which he set a six foot diameter wood saw into a timber table top - it was also the time of his 11,000 screw mirror, chain-mail curtaining and the Boiler-End door.

Living in Wiltshire with his wife, Cynthia, who is the Mark Wilkinson Furniture Ltd managing director - and their children, Greg and Victoria - as his family grew his inventive work matured and he created the most charming range of children's furniture still available today. Being Mark Wilkinson it also had an edge of the spectacular; in his full-sized Cinderella Coach and Toy-Town Castle.

Mark Wilkinson is best known for his kitchen designs and his style of designing is based on his contemporary interpretation of the feelings associated with a period, or a landscape or a place - his famed Cooks Kitchen is a very generous interpretation of the Edwardian period, which embraces every conceivable element of modern living. His insistence on 'completing' a design sees him creating every aspect of the furniture including the last detail of the hinges, the handles and all of the accompanying accessories - items such as coving, skirting, architraves and room doors.

Avoiding the stark over-simplicity of minimalism, Mark Wilkinson designs from the soul and with the practical vision of a keen and creative cook, he counts amongst his acquaintances a number of top chef's and celebrities, who return time after time for a Mark Wilkinson kitchen - Gary Rhodes, Antony Worrall Thompson and Susan Hampshire are amongst them.

Kitchen specialist In-toto has recently opened a new showroom in Swindon. Situated in the heart of Old Town, Swindon, the new showroom occupies a very prominent spot, where its large glass double-frontage has been grabbing the attention of passers by.

The impressive new showroom has been fitted with eight new displays including a contemporary high gloss, a more traditional solid Alder wood and a calming red in the window. These kitchens and the other ranges on display illustrate the quality, craftsmanship and style of In-toto kitchens.

All displays are complemented with top branded sinks and taps from Blanco, cooker hoods from leading suppliers such as Elica and appliances by major manufacturers such as Miele, Neff, Whirlpool, Smeg and AEG.

Having recently built their own house in Devizes, franchisees Philip and Michella Whitehead understand that it is essential that any project must have, and stay within, a defined budget. Philip and Michella plan to use their well-honed design skills and project experience to help customers choose the best In-toto kitchen for their homes.

Swindon is one of a nationwide network of almost fifty In-toto showrooms providing customers with the perfect mix of local ownership and strong group buying power, reducing the final cost.

To order a brochure call 01793 422004 or visit http://www.intoto.co.uk for more information.

Berkley Homes has started Phase 3 of the West 3 Loft Apartments Acton Vale London and with it has teamed up once more with Eurobath taking Mix2 for the stunning transformation of the Whitehall style building.

Mix2 is the latest in Italian design from Eurobath, stylised in a subtly square form mixed with elegant rounded spouts.

The extensive range has over 40 products from mono basins to thermostatic showers and can be coordinated with square accessories to complete the transformation.

Tel: 01934 744466
Email: sales@eurobath.co.uk
Web: http://www.eurobath.co.uk

Homag will host its first open house of 2007 with a special focus on CNC technology and in particular nesting as a system of production. The dates are March 13 - 15.

In 2006 Homag had great success selling CNC technology to all levels of industry. As more and more Homag customers realise the benefits of automation, the advantages of CNC technology allow them the flexibility to explore new product lines, designs and open up new market areas.

In particular Homag was successful in supplying advanced 5-axis CNC machinery to companies where this unprecedented level of flexibility, levels of productivity and quality are required.

Now nesting is the new buzz-word. A single clamping production operation being embraced by industry at all levels. From space saving solutions to industrial twin table concepts, the Homag Group has a variety of CNC nesting machines for all requirements.

Homag looks forward to demonstrating these techniques to customers and discussing their requirements in person.

Anyone needing invitations or requiring further information should contact Michelle Spencer on (Fax) 01332 856400 or (email) Michelle.Spencer@homag-uk.co.uk.

A complaint objecting to a leaflet for Electro Warm (UK & NI) Ltd storage heaters was upheld on all of the three objections according to information published by the Advertising Standards Authority (ASA).

A leaflet for storage heaters was headlined ‘Plug in and warm up’. Text beneath the headline stated ‘Innovative storage heating; better for you, your wallet and the environment. Plug in and warm up!’ The leaflet featured a numbered list under the subheading ‘Heating with electricity offers considerable advantages’. Point five on the list stated ‘Overall lifetime costs (Initial investment, maintenance, running costs) lower than other systems’. Another list on the reverse of the leaflet, headlined ‘Advantages’, included text that stated ‘Lower heating costs than other systems - much cheaper than night storage!’

Issue
The complainant challenged whether the claims
1. ‘Lower heating costs than other systems - much cheaper than night storage!’ and
2. ‘better for you, your wallet and the environment’ were misleading and could be substantiated.
3. The ASA challenged whether the claim ‘Overall lifetime costs (Initial investment, maintenance, running costs) lower than other systems’ could be substantiated.

The CAP Code: 3.1;7.1;49.1;19.1

Response
1. Electro Warm explained that the largest radiator they sold weighed 65 kg and had a maximum storage input of 2.5 kilowatts (kW). They compared that product with a heater sold by one of their competitors, which weighed 157 kg and had a maximum storage input of 3.4 kW. They argued that, because their product required a lower input than their competitor's product, it would cost less to run. They said their product could work on off-peak or on-peak tariffs and asserted that their competitor's product required both. They argued that, if their product was used on an off-peak tariff only, it would be cheaper to run than products that used electricity at off-peak and on-peak rates. They said they offered a ten-year guarantee with a promise to exchange any damaged component for free or to replace the heater entirely, but said their competitor only offered a two-year guarantee, after which customers would be required to pay for servicing. They sent a press release from their competitor which they believed showed that electric heating was cheaper than gas. They argued that, because their system was cheaper than their competitor's, it was the cheapest system overall.

2. Electro Warm asserted their heating system was better than other currently available products because:
~ it could be installed without major disruption to the home;
~ it was easy to use;
~ it did not require a boiler, so there was no risk of poisoning or environmental damage by defective, leaking boilers;
~ the combination of radiant and convected heat was healthier;
~ their competitor's product needed a booster at daytime rate running at 3.4 kW to restore a room's temperature if windows were opened, but Electro Warm's radiators only needed an input of 2.5 kW for 15 minutes within any 60-minute period to provide an hour's heating;
~ there were no hidden costs beyond sales and installation cost;
~ there were no service or maintenance charges;
~ its lower storage input ensured a lower contribution to carbon emission;
~ unlike older night storage heaters, their product did not contain asbestos or nickel;
~ the product was easily used with renewable energy sources, such as wind turbines or solar power;
~ unlike other storage heaters, their product did not produce carbon dioxide during usage;
~ night heaters baked a heating block overnight, so that the next day's heating had to be decided the day before, which could lead to waste if there was a sudden change in outside temperature that required either a booster operating at a more expensive day tariff or the opening of windows to let out excess heat.

3. Electro Warm asserted that, for an average three-bedroom terrace house requiring five heaters, no more than £3,000 would be spent on Electro Warm radiators. They argued that the initial investment needed for gas or solid/liquid oil heating systems, added to mandatory annual cleaning and maintenance costs and the rising cost of gas and oil, resulted in higher overall lifetime costs.

Assessment
1. Upheld
The ASA noted Electro Warm's comments. We considered that, without evidence to show that the products compared had a similar heat output, Electro Warm had not demonstrated that they had compared their product with their competitor's most similar heater. We did not consider that a comparison with one other product was sufficient to substantiate the claim and were concerned that Electro Warm had not provided comparative data on the cost of currently available heating systems. We did not consider that a longer guarantee or a press release could demonstrate that Electro Warm's product cost less than other heating systems. We did not see evidence that showed Electro Warm's product could run on off-peak electricity only, or that other heating systems could not do so as well. We reminded Electro Warm of their responsibility to hold evidence in support of all claims capable of objective substantiation. We concluded that the claim was misleading.

2. Upheld
We noted that Electro Warm had not provided comparative data to demonstrate that their radiators required less input to deliver the same amount of heat to a room or that their radiators could respond more quickly to changes in outside temperature than other systems. We noted that no new storage system currently available would include asbestos. We did not consider that Electro Warm had demonstrated that the absence of asbestos or ease of use with renewable energy sources were advantages of their product only. We concluded that the claim was misleading.

3. Upheld
We noted that Electro Warm had not sent comparative data that showed their system had lower overall lifetime costs than other heating systems. We concluded the claim was misleading.

On all points, the ad breached CAP Code clauses 3.1 (Substantiation), 7.1 (Truthfulness), 19.1 (Other comparisons) and 49.1 (Environmental claims).

Action
We told Electro Warm to remove the claims from future ads and advised them to seek guidance from the CAP Copy Advice team before advertising in future.

Nobia AB of Sweden and De MandemakersGroep Holding BV of the Netherlands have formed a joint venture for the purpose of developing a leading position within the kitchen retail market in Germany. The new company, Culinoma, aims to grow both organically and through acquisitions. Yesterday, Culinoma acquired all shares in Plana Küchenland Lizenz & Marketing GmbH.

Plana Küchenland Lizenz & Marketing GmbH owns the Plana Küchenland franchise concept with 38 stores, primarily located in southern Germany, with store sales of approximately EUR 70 million. The product offering consists of fitted kitchens, including all accessories and services. Plana's business model is focused on the franchise business and the provision of services and support functions to its franchisees. For more information on Plana visit http://www.plana.de.

Plana Küchenland represents Culinoma's first entry into the German kitchen retail market.

'We are committed to developing retail channels for kitchens in all of the European markets where we do business. We look forward to developing Culinoma together with De MandemakersGroep and are delighted about the acquisition of Plana Küchenland, which represents a promising platform for our further expansion in Germany,' comments Fredrik Cappelen, President and CEO of Nobia.

'De MandemakersGroep has been very successful in building strong kitchen, sanitary and furniture retail concepts in the Dutch market. The German market is in an interesting development phase and we are excited about jointly developing Culinoma with Nobia,' says Ben Mandemakers, President and CEO of De MandemakersGroep.

The Plana Küchenland transaction is conditional on approval by competition authorities.

Web: http://www.nobia.se
Web: http://www.mandemakers.nl

Sales for kitchen company Nobia increased during the fourth quarter 2006 by 23 per cent to SeK 4,056 million (3,291), at the same time as operating profit rose by 23 per cent to SeK 347 million (281). For the full year, sales increased by 25 per cent to SeK 15,590 million (12,442). Organic growth amounted to 11 per cent in 2006. earnings per share increased by 34 per cent and amounted to SeK 14.78 (11.01). the operating margin strengthened to 8.5 per cent (8.0) and operating profit rose to SeK 1,327 million (993).

The improvement in operating profit for the year was the result of increased sales in all regions due to high levels of demand, continued market ventures and the acquisition of French company Hygena.

During the fourth quarter, structural measures were made in all three regions with the aim of enhancing integration and strengthening competitiveness.
The Board proposes an increase in dividend to SEK 6.00 (3.50) and intends to propose a 3 to 1 split to the Annual General Meeting.

Comments from the CEO:
'Growth continued during the fourth quarter. Hygena has continued to provide a positive contribution to earnings per share. We are furthering our work with strengthening our internal efficiency,' says President and CEO Fredrik Cappelen.

Web: http://www.nobia.se

Whirlpool Corporation announced on February 7th 2006 annual earnings per share from continuing operations of $6.35 per diluted share compared to $6.19 per diluted share in the previous year. Annual sales of $18.1 billion increased 26 percent from the prior year, reflecting the acquisition of Maytag Corporation and global demand for the company's consumer preferred brands and innovation.
Strong cash flow provided by continuing operations of $880 million enabled the company to reduce post-acquisition debt from $3 billion to $2.3 billion.

Fourth-quarter net sales increased 25 percent from the prior year to a record $5 billion, driven primarily from the acquisition and strong international growth. Net earnings from continuing operations for the company's fourth quarter, which include the operating results, integration costs and purchase accounting impact from the acquisition of Maytag, were $133 million, or $1.67 per diluted share, compared to $126 million, or $1.83 per diluted share reported during the previous year.

The company completed the sale of Dixie-Narco vending systems during the fourth quarter and Hoover floor-care on January 31st, 2007. There is no gain or loss associated with either of these transactions. The fourth-quarter financial results for Hoover, Dixie-Narco and Jade are included in discontinued operations. Total net earnings for the fourth quarter, including discontinued operations, were $109 million, or $1.37 per diluted share.

Net earnings from continuing operations for the quarter reflected continued strong performance across the company's international businesses as well as lower income tax, restructuring and sundry expense. Fourth-quarter results were negatively impacted by significantly higher material prices, lower U.S. industry appliance demand and higher interest expense.

‘This has been a historic year for Whirlpool Corporation. During 2006, we completed the largest acquisition in the history of our company and introduced a record number of new innovative products. Additionally, our international businesses delivered record level results. We remain confident in our ability to realise significant shareholder value from the Maytag acquisition, and believe the opportunities unique to this transaction will positively change our long-term performance capabilities,’ said Jeff M. Fettig, Whirlpool Corporation's chairman and chief executive officer. ‘Fourth-quarter margins were negatively affected by lower industry demand in the United States and higher material prices. We expect to benefit from the ramp up of acquisition efficiencies, new product introductions to revitalise the Maytag brand, continued improvements in our international operations and product innovation during 2007.’

New Innovations
• Maytag brand introduced the Ice2O counter-depth, French door, bottom-freezer refrigerator.

• Amana brand launched the Traditional Series top-load laundry pair with new anti-microbial component protection, which resists mold, mildew and odour-causing bacteria.

• Whirlpool brand completed the largest product launch in the company's history this year, which included:
- The new Cabrio washer and dryer that offers a 4.5 cubic foot capacity in a top-load design, handles the equivalent of three laundry baskets in a single load and significantly reduces dry time through a combination of the washer's ultra-fast spin speed and the dryer's AccelerCare system. The Cabrio saves more than half the energy and water used by conventional top-load washers.
- The Whirlpool brand Duet Sport HT model, which is the smaller version of the popular Duet front-load pair, with a six-point suspension to reduce vibration and noise. Like the Duet pair, Duet Sport HT uses less than half the water and energy of conventional top-loaders.
- The Whirlpool brand ‘Classic’ top-load washer and dryer, which have been redesigned with new technology to simplify cycle selections, ensure optimal wash temperature and monitor wash water with built-in sensors. The dryer's AccelerCare system dries clothes as fast as the washer cleans them.

• KitchenAid brand continued the launch of its Architect Series II - a new generation of its premium, flagship appliance line with enhancements inspired by cooks, culinary professionals and design experts. The suite of appliances includes electric, gas and traditional dual fuel ranges; dishwashers; side-by-side and under counter refrigerators; wine cellars; beverage centers; ice makers; and microwave hood combination ovens.

• The company's Brastemp brand launched a side-by-side refrigerator with 6th Sense technology in Brazil.

• Whirlpool Europe introduced KitchenAid brand major appliances featuring European styling coupled with leading-edge technology that will be available to consumers in early 2007.

• Whirlpool Europe also introduced the ‘Vitesse’ microwave oven with Jet Menu function that allows consumers to cook frozen ready-made meals with one touch and a crisp function that allows for cooking, frying or baking at microwave speeds. The ‘Vitesse’ also features steam capability.

Awards
• The Whirlpool Duet Sport fabric care system, KitchenAid Architect II Series Microwave Hood Combination Oven and Maytag ICE20 Refrigerator were honoured with design awards from the Chicago Athenaeum of Architecture and Design.

• The Whirlpool brand Duet fabric care system was recognised by the Industrial Designers Society of America (IDSA) and BusinessWeek magazine with a Catalyst Award for design. Whirlpool was one of only three companies recognised from the more than 30 other products considered, each of which has experienced significant financial success in its particular market segment.

• In North America, Jenn-Air was once again named ‘most preferred cooking brand’ by Brand Health Tracker.

• Whirlpool was named the ‘Most Admired Company’ in the home appliances segment in Brazil for the ninth consecutive year according to research by Carta Capital magazine and TNS InterScience.

• Brastemp brand was named ‘Top Consumer A brand’ by Folha de Sao Paulo, a leading Brazilian newspaper. Brastemp also had the highest recognition of any brand among high-end consumers, the only home appliance brand in the world to be recognised in this manner.

• Whirlpool Europe received the International Forum Design Award for ‘In. Home,’ a concept that takes appliances to locations in the home where they've never been and invents ways in which they can interact as a system rather than stand-alone appliances.

Fourth-Quarter Region Review
Whirlpool North America fourth-quarter sales increased 29 percent, versus the year-ago period, to $3.2 billion, driven by the acquisition of Maytag. Industry unit shipments of major appliances (T7)*, which declined approximately 8 percent during the quarter, negatively impacted margins. For the year, industry unit shipments declined approximately 1 percent.

Fourth-quarter operating profit of $148 million, which declined $79 million from the prior year, included significant increases in material costs, lower production as the company adjusted inventory levels with reduced industry demand, acquisition integration costs and increased merchandising expense. Acquisition efficiencies and positive mix from new innovative product offerings introduced during the year partially mitigated these higher costs.

Based on current economic conditions, the company expects 2007 industry unit shipments to decline approximately 2-to-3 percent.

Whirlpool Europe reported record fourth-quarter and full-year revenue and operating profit during 2006. Revenue increased 15 percent during the quarter to just under $1 billion, led by continued strong performance by the company's Whirlpool brand and innovative new product offerings. In local currency, sales increased approximately 7 percent during the quarter. Overall industry unit volume growth is estimated to have increased 1-to-2 percent for the fourth quarter.

Record fourth-quarter operating profit of $61 million increased 32 percent over last year's results, led by strong market performance, lower administrative costs and improved product mix. The region's fourth-quarter operating profit margin of 6.2 percent increased just under one percentage point from last year's results.

Based on current economic conditions, the company expects full-year 2007 industry unit shipments to increase approximately 2-to-3 percent.

Whirlpool Latin America reported record fourth-quarter and full-year revenue and operating profit during 2006. Sales improved 26 percent to $729 million during the quarter, reflecting continued strong momentum and demand for the company's innovative brands and favourable economic conditions in Brazil. Excluding currency translations, sales increased approximately 20 percent. During the quarter and for the full year, company unit shipment growth of appliances exceeded industry demand, which is estimated to have increased approximately 25 and 20 percent, respectively.

Record fourth-quarter operating profit of $84 million, which included the impact of currency, increased 49 percent from the prior year. Regional operating profit margin of 11.5 percent continued to improve during the fourth quarter and increased significantly from the 9.7 percent reported in the previous year. Productivity improvements, cost controls and strong appliance demand drove the year-over-year improvement.

Based on the current economic environment in Brazil, the company expects full-year 2007 appliance industry shipments to increase 10-to-12 percent.

Whirlpool Asia fourth-quarter sales of $123 million increased 12 percent from last year. Excluding currency, sales increased approximately 11 percent. Operating profit improved $8 million during the quarter, largely driven by strong performance in India, successful new product launches, productivity improvements and a favourable product mix.

Based on current economic conditions, the company expects 2007 industry unit shipments to increase 5-to-10 percent.

Outlook
‘We remain well positioned to realise significant efficiencies in excess of $400 million from the Maytag acquisition by 2008 and continue to execute plans to revitalise Maytag's product offering and growth during 2007,’ said Fettig. ‘Current demand trends in the United States are expected to be down during the first half of the year and improve during the second half. We expect our strong international performance momentum to continue this year, and expect the benefits from acquisition efficiencies and Maytag new product introductions in our U.S. business to accelerate during the second half of 2007.

‘We are addressing current U.S. industry demand trends and heightened global material costs with continued new product innovation, increased productivity throughout our global operations, as well as improving our overall mix of business and implementing cost-based price adjustments.

‘Given this environment, we are projecting our full-year 2007 earnings per diluted share from continuing operations to be in the $8.00 to $8.50 range and expect to generate between $600-to-$650 million in free cash flow.’

One thousand female entrepreneurs will be recruited to help and inspire more women to set up their own business, Industry and Regions Minister Margaret Hodge announced on 7th February.

This army of businesswomen activists will provide a national network of women helping women across the country and will work with the new Task Force for Women's Enterprise.

The 1000 strong network will:
* be recruited by the Regional Development Agencies (RDAs) advised by Enterprise Insight, with each RDA asked to recruit over 100 entrepreneurs;
* have a focus on key stages of women's lives including younger women, women who have just had children and are taking stock of their future work plans and women whose children may now have left home; and,
* work with women in their communities, through education and in specific industries to inspire more women to start their own businesses.

Speaking at a conference on women's enterprise, organised by Prowess, Margaret said:

‘We can't afford not to do this. There would be three quarters of a million more businesses in the UK if we matched US levels of female entrepreneurship.

'Successful women throughout the country can and must mentor and inspire many more women to think: 'yes I can do that' and take the confident plunge to start their own business.

‘This will lead to a new women's movement that will push back gender barriers and give women the confidence and support they need to start a business.’

Enterprise Insight has already recruited thirty ambassadors for the new women's enterprise network.

Kevin Steele Chief Executive of Enterprise Insight and the Make Your Mark campaign said:

‘We are looking forward to working with the RDAs to advise on their recruitment of this country-wide network of inspirational business women. These ambassadors for women's enterprise will help generate more self-belief among women to start a business, and provide the culture change needed to boost the rates of entrepreneurship in the UK.’

Margaret Hodge also announced that later this year a new support programme for women who have graduated from a UK university within the past 10 years and are thinking about starting a business will be launched.

The programme, to be run by the National Council of Graduate Entrepreneurs, will assist women graduates to turn their business ideas into reality, with sustained support provided over a twelve-month period.

Support activities will include:
* a three-day residential business readiness course;
* one-to-one mentor support; and,
* access to a dedicated online support.

The scheme will be launched later this year with applications to participate being sought from all UK universities, Regional Development Agencies and Business Link Operators (and equivalent in Scotland and Wales).

The facts on women's enterprise:
* If the UK had the same rates of female entrepreneurship as the US we could have around three quarters of a million more businesses;
* If we get more women into the economy UK productivity could be boosted by up to £23 billion, worth 2 per cent of GDP;
* Women-owned businesses contribute about £60 billion to the economy (Gross Value Added);
* Men are still almost twice as likely to start businesses as women (GEM Report);
* If women started businesses at the same rate as men, the UK would see 150,000 more businesses per annum;
* Most of the one million self employed women in the UK are in the service sector. (Labour Force Survey); and,
* On average, the interest rate charged on loans to female-owned businesses is 1% higher than the rate charged to male-owned businesses (2.9 vs 1.9 percentage points over base; Source: A Report on the 2004 UK Survey of SME Finances, University of Warwick).
* When we asked a small group of female entrepreneurs recently their inspiration/ role model for starting a business four out of ten of them said their role model was another female entrepreneur. (Initial findings from a survey of women entrepreneurs in science, engineering, construction and technology conducted by the UK Resource Centre for Women in Science, Engineering and Technology and PROWESS).