Hopkinsons
Launches Own Label Appliance Range
Hopkinsons Fourways has developed and extended its own Prima brand by
launching a comprehensive range of kitchen appliances, following in the
success of its Prima kitchen and bathroom collections.
The new Prima appliance range, now available in a 16 page catalogue, includes
cooking, cooling and laundry products and perfectly complements Hopkinsons
Fourways’ already wide-ranging appliance collection comprising of
leading manufacturers’ brands, such as Whirlpool, Zanussi and Bosch.
Targeting kitchen retailers and independent kitchen appliance retailers,
the new range has been sourced
from major European appliance manufacturers to Prima’s high specifications,
focussing on quality, reliability, choice, aftercare service and price.
'Due to our size and economies of scale,'explained Marketing Manager Sally
Parkinson, 'one of the greatest benefits the new Prima appliance range,
is the highly competitive pricing we can offer the retailer, who in turn
can pass onto the consumer, yet still remain competitive. As with all
our own-branded products, we focus on value without compromising quality
and style, offering the same technology, functionalities and latest designs
of the well known household names.'
The Prima appliance portfolio has evolved through extensive research into
the current market and satisfies the needs of today’s discerning
purchaser. Co-ordinated appliances are available in stainless steel and
white, boasting the extra features expected, such as touch control panels,
child locks, fully integrated models and efficient energy ratings.
Being the UK’s largest distributor, Hopkinsons Fourways offers the
retailer the many advantages associated with buying through this channel.
Stockholding is immense, meaning the one-stop shop can offer short lead
times, quick delivery to all areas, an enormous choice, high levels of
customer support, value for money and hold a vast knowledge of all products
and markets. This, often, cannot be matched by the manufacturers themselves
and means retailers do not have to carry high levels of stock. These factors
make the availability of an own-brand such as Prima yet more appealing,
contributing greatly to retailer profit and cash flow.
For further information and a copy of the new Prima Appliances Catalogue,
call 01204 707070 or log onto www.hopkinsonsfourways.co.uk.
Maytag
UK's Extra lncentive for Great Christmas Sales
Maytag
UK is investing in several promotions for the fourth quarter trading period
for both the consumer and the retailer and has added an extra boost for
the last two months' of the year.
Maytag UK has added a greater retailer incentive to its Admiral brand
for November and December. The Admiral 60ADi (black or white) will attract
a £40 spiv for the retailer. Not forgetting that this is supported
with a consumer £100 cashback promotion on purchases before 31st
December 2003.
Graham Gleave, Sales Director says, 'This is a great time for both the
retailer and the consumer to invest in a genuine American brand. With
the additional retailer incentive it makes a profitable time for everybody.'
Maytag UK is supporting the promotion with purposeful point of sale, and
in addition, national advertising in the Daily Mail throughout December.
Also running throughout the fourth quarter is a retailer promotion for
Maytag branded refrigeration, the SOV60 and the SOV60CZ (with ClimateZone™).
From 15th October through to the 31st December Maytag is offering the
retailer great profit and volume driving opportunities. Maytag is fully
supporting the SOV60/CZ with an additional £200 discount off the
published trade price. This offers a competitive retail deal, driving
sales for the retailer. In support of this there is a staff incentive
for the sales team, which entitles the salesperson to a £50 Marks
& Spencer voucher for each SOV60/CZ sold.
Tel: 01737 231000
Showerlux
Moves into new Head Office Facility
In response to considerable sales growth and the continued expansion of the Showerlux product portfolio, the company has moved into a new 200,000 sq ft Head Office facility, centralising sales, manufacturing and warehousing operations. The move comes as Showerlux celebrates its 30th anniversary.
Showerlux's
new 200,000 sq ft Head Office facility
Managing Director Bob Bowler comments: 'Moving into our new premises is
a major achievement in what is already a landmark year for us. Showerlux
has developed enormously since it started out from a single unit on a
Rugby industrial estate in 1973 and our move into these impressive new
premises is testimony to this.'
'The new site features a production area dedicated to the manufacture
of Europa Urban, one of the most successful new products launched last
year. Urban has proved to be a fantastic addition to the enclosure collection,
already exceeding its 2003 sales budget.
'The
continued sales success of the Showerlux collection, and in particular
our successful move into new markets such as hydrotherapy and walk-in
enclosures led to the decision to acquire more land and develop a new
Head Office that would deliver benefits to our customers as well as our
employees. By housing our sales, manufacturing and warehousing operations
under one roof, we can deliver an even higher level of customer service
with a greater level of co-ordination and efficiency for our employees.
'The new premises means a more contemporary and comfortable working environment
that will help to foster the Showerlux team spirit. We are delighted that
we have been able to time the move to coincide with our 30th anniversary
which gives us a double reason to celebrate and are looking forward to
what we are sure will be a successful future in our new home.
'Many of you will no doubt remember when Showerlux was purely a Shower
Enclosure manufacturer. But over the past 15 years we have grown and evolved
into a leading Bathroom brand successfully capturing significant market
share in lines such as acrylics, mirrors, mirror cabinets and hydrotherapy.
AIl of this has been possible by bringing the Showerlux quality, design
and technical expertise to these newer areas of our business.
'Take Hydrozone as an example, the product range increased by an unbelievable
130% last year. This product has been tremendously successful for us and
indeed you. The product was specifically developed to give an unrivalled
choice at a competitive price point and quite simply it has proved a staggering
success.
'Consequently diversifying into new markets is a strategy that will continue.
Our new facilities now gives us the capacity to grow further and this
will be through developing existing as well as new product lines.
'Developing existing product lines is something we at Showerlux have been
working towards for some time now. We have already launched earlier this
month 'The 30th Anniversary Bathroom Collection'.
'But back to basics for Showerlux and that means Shower Enclosures. Earlier
this year we held focus groups, up and down the country to discuss some
of our ideas for the next generation of enclosures - a design-orientated
volume selling range. Since that time, a ground breaking design concept
has been selected, specifically for the UK market, and we are currently
in the process of detailed design and manufacturing. This range, together
with several other products, will be launched at KBB 2004, and will provide
a sturdy platform for continued sales success.'
Tel: 02476 88 25 15
Web: http://www.showerlux.com
Airbath
Group plc - Pre-Tax Profits 30% Less than Expected
Airbath
Group plc, designer and manufacturer of baths and bathwares, announces
preliminary results for year ended 31st March 2003. Commenting, Clive
Gilham, Executive Chairman, said: 'The Group has undergone considerable
change since our flotation in August 2001 and has overcome many short
term problems during that time. Unfortunately, order intake and trading
volumes in the period since the year end have been disappointing and the
interim results will, therefore, be well below those achieved last year.
Nevertheless, we believe that there are many opportunities for growth,
especially for our Airbath and Appollo product ranges, and we remain committed
to the further development of the Group.'
Highlights of the results:
• Profits in line with trading statement of 9th April 2003
• Profit before exceptional items and tax £673,000 (2002: £944,000)
• Net debt reduced to £3,566,000 from £4,349,000
• Earnings per share of 0.85p (2002: loss per share 0.67p)
Chairman's Statement
Financial results
The challenging trading conditions referred to in the interim results
of 19th December 2002 continued from the third quarter into the fourth
quarter in both Aquabeau and Brampton Housewares. These difficulties have
resulted in the profit before tax and exceptional items for the full year
being about one third below our expectations, as we announced to the Stock
Exchange on 9th April 2003.
The profit before tax for the year ended 31st March 2003 was £559,000
(41 weeks ended 31st March 2002: £56,000). The eamings per share
was 0.85p (41 weeks ended 31st March 2002: loss per share of 0.67p).
Net exceptional costs before taxation for the period were £114,000
(2002: £888,000). Of this, exceptional costs of £352,000 were
incurred as a result of reorganisation and redundancy in both of the trading
companies. Since the half year date, we have successfully negotiated a
recovery from Aquarius Group plc from claims arising under the demerger
agreement, principally relating to costs suffered by the Group in the
period ended 31st March 2002. This claim was settled on 31st October 2002
by a combination of cancelling preference shares and waiving accrued dividends
to a value of £238,000 net of expenses. This exceptional profit
has been recognised in the full year results and this leaves a total of
£2,601,000 7% net cumulative preference shares in issue.
During the year, the Group entered into an interest rate swap contract
which effectively fixes part of the Group's interest rate exposure for
two years from 1st January 2004 at an interest rate of4.46%.
Balance sheet
Net debt at 31st March 2003 was £3,566,000 (2002: £4,349,000),
which was significantly reduced by working capital initiatives, particularly
involving better inventory management. The Group balance sheet at 31st
March 2003 shows net liabilities of £1,215,000 (2002: £1,249,000),
which is primarily due to a merger reserve of £4,142,000 arising
on the demerger of the trading companies from Aquarius Group plc in 2002.
Dividend
During the year, an interim ordinary dividend of 0.10p (41 weeks to 31st
March: nil) was paid on 27th February 2003. In light of the trading outcome
for the financial year and the disappointing start to the current year,
the Board has decided that it will not be appropriate to pay a final ordinary
dividend. In any case, the deficit on profit and loss reserves prevents
any distribution of dividends.
During the year, the Company accrued preference dividends of £192,000
(41 weeks to 31st March 2002: £124,000) and paid £200,000
of preference dividends (41 weeks to 31st March 2002: £24,000).
Due to the deficit on profit and loss reserves, the proposed preference
dividend of £90,000 cannot be paid and will not be paid in the foreseeable
future. The cost of this dividend has been recognised in the profit and
loss account as a finance cost and credited back
through reserves.
Review of operations
Aquabeau - turnover £9,501,000 (2002 pro forma: £9,857,000)
Aquabeau specialises in the design and manufacture of spa baths, hydraulic
and walk-in baths, quality standard baths, shower trays and bath panels.
Aquabeau's sales did not increase as anticipated, in part due to the change
of some of Appollo's suppliers in the third quarter, and this resulted
in a small drop in full year profits compared with last year. However,
Aquabeau remains profitable with good operating margins. We remain committed
to our strategy of focusing on our niche and more profitable product ranges
and to the marketing of Airbath® products through our now established
'Centres of Excellence'. We believe that there are numerous opportunities
for profitable growth in most of the markets served by Aquabeau. The Appollo®,
range of assisted bathing products is directed at a growing market of
both institutional and private clients. The moving water segment of the
market is growing significantly and this is served by both our Airbath®
range of products as well as our small but increasing range of whirlpools.
Meanwhile, the Aquarius range has performed well in the period and we
expect this success to continue. Aquabeau's strategy continues to focus
upon expanding its range of high margin products and strengthening its
brands.
Brampton Housewares - turnover £5,802,000 (2002 pro forma: £6,640,000)
Brampton Housewares, the bathware collection, continues to manufacture,
assemble and distribute a range of bathroom cabinets and accessories.
Brampton Housewares has continued to suffer in an increasingly tough market
and profits for this company were considerably behind those for the same
period last year. There has been significant investment in sales and commercial
staff to strengthen the business and it is moving away from using third
party sales agencies. However, the benefits of this change were not felt
during this financial year as onerous EU law concerning third party agents
forced us to pay considerable severance costs. Following the merger of
two of our major customers, we continue to monitor developments in the
bathwares marketplace.
Directors and staff
Following the considerable operational changes that took place within
the business last year, Glenn Powers relinquished his role as Operations
Director and has since resigned as a Director. Phillip Bennett also resigned
as a non-executive Director during the year.
Prospects and current trading
The Group has undergone considerable change since our flotation in August
2001 and has overcome many short term problems during that time. Unfortunately,
order intake and trading volumes in the period since the year end have
been disappointing and the interim results will therefore be well below
those achieved last year. Nevertheless, we believe that there are many
opportunities for growth, especially for our Airbath® and Appollo®
product range, and we remain committed to the further development of the
Group.
Going concern
Subsequent to the year end, the Group is in breach of its banking covenants.
All the bank facilities are now repayable on demand, and the revolving
debt facility has been reduced from £2.5m to £1.6m. The overdraft
and invoice discounting facility have not been affected. The Directors
have been in discussion with the Group's bankers, who have indicated that
they are prepared to continue to provide adequate bank facilities, subject
to a number of conditions, including satisfactory trading performance.
The Bank has not demanded repayment of its loans. The Directors believe
it is appropriate that the financial statements, from which the contents
of this announcement have been taken, be prepared on a going concem basis.
Whirlpool
to Strengthen Global Manufacturing Position in North America
Whirlpool
Corporation recently announced a series of initiatives to strengthen the
company's global operating platform in North America and extend its leadership
position in the U.S. appliance industry. The initiatives are part
of a comprehensive worldwide effort to optimise the company's regional
manufacturing facilities, supply base, product platforms and technology
resources to better support its global brands and customers.
As part of the global initiative, Whirlpool is nearing completion of approximately
$100 million of investments to optimise manufacturing processes and build
new product platforms for the company's brands at seven of its U.S.-based
production facilities.
'Whirlpool's leadership position in the appliance industry is built on
our ability to offer consumers strong brand names supported by innovative
and competitive products and services,' said David L. Swift, executive
vice president, North American Region. 'These initiatives will strengthen
Whirlpool's industry leading position in a dynamic business environment
marked by intense competitive pressures and rising costs.'
Whirlpool's $100 million investment in its U.S. manufacturing operations
included the following initiatives:
• A recent consolidation of Whirlpool's North American top-loading
clothes washer production at its Clyde, Ohio, manufacturing facility. Part
of the consolidation included units previously manufactured at the company's
laundry production facility in Monterrey, Mexico.Today, the units are
manufactured at Clyde and exported for sale in Mexico.
• Expanded production of Whirlpool and KitchenAid brand dishwashers
at its Findlay, Ohio, plant.
• Expanded production of new refrigerator models at its Evansville,
Ind., plant.
• Expanded production of a new line of Whirlpool brand room air conditioners
and KitchenAid brand built-in refrigerators at its LaVergne, Tenn., plant.
• Expanded production of Whirlpool brand Duet® clothes dryers
at its Marion, Ohio, plant.
• Expanded production of new Whirlpool and KitchenAid brand cooking
products in its Oxford, Miss., and Tulsa, Okla., plants for the U.S. and
export markets.
The company also expects to make additional investments to strengthen
its North American refrigeration competitiveness through the expansion
of Whirlpool's operations in Mexico. The expansion involves a new facility
that is expected to produce the company's next generation of side-by-side
refrigerators for Mexico's domestic and export markets in 2005. The
company expects that some models currently manufactured at the Ft. Smith,
Ark., operation will be produced at the new facility. Details regarding
the location, scale and costs of the new facility will be finalised in
early 2005.
Web: http://www.whirlpoolcorp.com
Fortune
Brands Acquires Therma-Tru Door
Fortune
Brands Inc.’s Home and Hardware business has signed a definitive
agreement to acquire Therma-Tru Corp., the manufacturer of residential
entry doors based in Maumee, OH in a transaction valued at approximately
$925 million.
A diversified company with annual sales of $6 billion, Fortune Brands
include Moen, said to be the market leader in faucets, and MasterBrand
cabinets, said to be the number two brand in kitchens and baths. A Window
& Door Top 100 manufacturer with annual sales of over $400 million,
Therma-Tru is reported to have a leading market share of 25 percent, and
a substantially higher share in the entry door business's fastest-growing
segment, fibreglass entry doors.
'As the leader in an attractive home products category, Therma-Tru is
an excellent strategic fit that opens the door to additional growth in
our fast-growing Home & Hardware business,' says Norm Wesley, Fortune
Brands chairman and CEO.
'Therma-Tru fits our focus on leading brands, shares beneficial demographics
and market fundamentals with our other home products brands, and creates
valuable sales growth and cost synergies within our $3 billion Home &
Hardware business. Like kitchens and baths, entry doors add significant
value to the home and are among the highest-return improvements homeowners
can make. We expect Therma-Tru to be another high-impact, high-return
addition from the start.'
'We see opportunities to leverage our strong customer relationships in
both the replace/remodel and new construction channels to further grow
Therma-Tru, and to use our combined purchasing power and best practices
to achieve cost and asset savings,' adds Bruce Carbonari, president and
CEO of Fortune Brands' Home & Hardware business.
'Therma-Tru has a highly attractive growth and return profile, underpinned
by its powerful position in the fastest growing segment of the residential
entry door market, strong brand awareness, potential for growth in categories
like patio doors, and the excellent underlying demographics in the home
products market. We’re excited to welcome Therma-Tru’s
top-notch management team and great workforce to the Fortune Brands family.'
'Our new relationship with Fortune Brands is a smart decision that will
help fuel our future growth and provide new opportunities for Therma-Tru,'
says Carl Hedlund, president and CEO of Therma-Tru.
'The market-leading Therma-Tru brand is an outstanding complement to Fortune
Brands’ Home & Hardware business and family of great consumer
brands. This is also an ideal marriage of our cultures, operating
philosophy and commitment to people. It will allow us to enhance Therma-Tru’s
presence in the home building and home improvement channels and open new
doors for growth.'
Based in Lincolnshire, IL, Fortune Brands has operating companies in home
and hardware products, spirits and wine, golf equipment and office products.
In addition to Moen faucets, home and hardware brands include Aristokraft,
Schrock, Diamond and Omega cabinets, Master Lock padlocks and Waterloo
tool storage sold. Major spirits and wine brands include Jim Beam and
Knob Creek bourbons, DeKuyper cordials, The Dalmore single malt Scotch,
Vox vodka and Geyser Peak and Wild Horse wines. Golf brands include Titleist,
Cobra and FootJoy. Office brands include Swingline, Wilson Jones, Kensington
and Day-Timer.
KBSA
Member Wins Top Design Award
A
member of the Kitchen Bathroom Bedroom Specialists Association has won
one of The Kitchen Bathroom Designer magazine’s new Design Awards.
Amanda Dunlop of Stuart Frazer earned the prestigious title of New Designer
of the Year – kitchens category.
More than a hundred entries were examined by the Design Awards panel of
judges, of which just 12 were shortlisted for four awards.
Other KBSA member finalists were Martin Holiday of Chiselwood Ltd (Designer
of the Year – Kitchens section category), Darren Barker of Nicholas
Anthony and Kate Rayner of Mobalpa (New Designer of the Year – Kitchens
category).
New
Kitchen Designer of the Year Amanda Dunlop (centre) with Sir Terence Conran
(left) and Kevin McCloud
The finalists were invited to attend the Design Awards presentation lunch,
which was hosted by Kevin McCloud of Channel 4’s Grand Design, at
Mezzo in London late last month. They have also been invited by Bushboard
to visit the Polyrey factory in France where they will meet the company’s
design team.
‘The standard of entries for the New Designer award was exceptionally
high and we congratulate Amanda on her excellent achievement,’ said
KBSA chief executive Graham Hayden.The Design Awards were supported by
more than 30 leading brands in the kitchen and bathroom industry, plus
the KBSA and the NKBA (the KBSA’s sister association in the US).
Profits from the Design Awards lunch are being used to fund a bursary
that will provide grants to individuals who are looking to improve their
knowledge of kitchen or bathroom design.
Tel:
01905 621787
Email: mailto:info@kbsa.co.uk
Web: http://www.kbsa.co.uk
The
Corner Fridge Company Update
'The
Corner Fridge Company is home not only to the ultimate version of the
legendary Corner Fridge, but also to some of the most innovative refrigeration
and wine storage products available today.' says Irwen Martin from The
Corner Fridge Company.
'2003 has been a busy year for the Corner Fridge company. Our Corner fridge
has had more sales than ever before a result not only attributed to our
increased marketing , but also to its superior specifications and benefits
when compared to similarly priced rival products. For example we deliver
and install all our products using our own in house team,' continues Irwen.
'Our in house service team, in the unlikely event that a breakdown occurs,
has an average response time of 24 hours!
'We think its imperative that we place as much importance on our service
as we do on developing our products as this is seen to be instrumental
in maintaining both our reputation as the last word in Corner Fridges
and for securing future growth.
'Our new website http://www.cornerfridge.com
has recently been updated and with our dealer list increasing daily its
well worth a look.
'You will also find our new integrated wine cooler which is unique to
the market place -another first for the Corner Fridge Company' Irwen concludes.
Tel: 0845 061 6622
Email: mailto:irwen@cornerfridge.com
In-toto
is moving across the street from 869 High Road to 950 High Road in Finchley,
creating a much larger showroom with many more new kitchen displays. Work
is expected to be completed by early 2004.
Contact Cleo Matsukis
Tel: 0208 445 7499
Email: mailto:finchley@intoto.co.uk
The
Raywall® from Glaverbel - a Scintillating Geometrical Design Showcased
in Batimat
Glaverbel
recently introduced Raywall®, a new patterned glass with a prismatic
surface available in two versions: Raywall® 45 and Raywall® 90.
In addition to its fashionable structured graphics, Raywall® has light
reflection properties suitable for interior arrangements or scintillating
frontages.
Originally from Glaverbel's Imagin® range, Raywall® is a translucent
patterned glass whose geometrical design with parallel grooves forms an
embossed structure. This design was created in order to reflect the sun
to greater advantage when it is high in the sky in summer and when the
risks of overheating inside buildings are greatest. Conversely, Raywall®
allows the sun's rays to penetrate to maximum effect when the sun is low
in winter and when the gains to be had from it are most beneficial in
terms of heating buildings. From an aesthetic point of view the geometry
of Raywall® creates different shimmering effects according to the
seasons and according to the angle from which the product is viewed.
With a thickness measuring 6 mm, Raywall® can be tempered, laminated
and assembled for double-glazing. This product comes in two functionally
and aesthetically distinct versions: Raywall® 45 and Raywall®
90.
When used in exteriors, Raywall® 45 and 90 can be used for vertical
or inclined walls. The rays of the sun are reflected from the Raywall®
45 in a particularly effective manner when it is used for skylights, and
from the Raywall® 90 when it is used for frontages (stairwells, covering
of concrete sills and of walls). Use of the Raywall® in spandrels
can already be seen in a recently completed building, the ABB Power Tower
in Baden (Switzerland), where a metallic grill was also placed behind
the glass in order to heighten the play of light.
Finally, Raywall®, like other types of patterned glass, is also intended
for interior use, in partitions, framed doors, sliding doors, shelves,
kitchen cupboards, furniture, etc.
The followers of contemporary exterior and interior architectural design
are already delighted with the many possible uses of Raywall®.
Web: http://www.myglaverbel.com
American
Standard Survey Reveals how Americans Save Money on Energy Bills
Do
you know what household activities lower your energy bills the most? A
recent poll commissioned by American Standard, a company that focuses
on bath and kitchen products, central heating and cooling systems and
vehicle control systems, shows that respondents chose upgrading insulation
as the number one way to save money when it's cold outside.
Approximately one in three (32 percent) chose upgrading insulation, with
lowering the thermostat following closely behind at 26 percent. Next was
replacing your old heating system with a more energy efficient model (19
percent), turning out the lights with 14 percent and last, replacing bulbs
(4 percent). Six percent chose other ways to save on their energy bills.
These survey results indicate that people are aware of how to save money
on their energy bills, but they may not actually realise how much money
they can save. Below are statistics on how much money each household activity
can save you each year.
Upgrade insulation
A good insulating system includes a combination of products and construction
techniques that provide a home with thermal performance, protect it against
infiltration, and controls moisture. A proper insulation can save the
average homeowner as much as 35 percent on energy costs.* (2)
Lower thermostat
During the winter, you can save by lowering your thermostat at night and
whenever the house is unoccupied, reducing your heating costs by up to
4 percent for every degree that you lower your thermostat.* (1)
Regulate thermostat
'One of the most cost-effective measures for reducing energy costs is
to replace simple dial-type thermostats with smart programmable thermostats,'
says Paul Trotter, national sales manager for American Standard Heating
& Air Conditioning. 'These units allow you to set the heating system,
lowering the temperature while you're asleep or out and raising the temperature
to a comfortable level when you wake up or come home. In today's average
2200 sq. ft. home, this can save you up to $100 on your yearly energy
bill.' (2) With that $100 savings you can buy 79 gallons of gas ($1.40
average cost per gallon), take a family of five to see two movies on the
big screen, or purchase a daily newspaper subscription for 40 weeks (not
including Saturday or Sunday delivery).
Turn lights off
Lighting represents about 10 percent of your home's energy bill each month.
At no cost and little effort, you can save up to 20-50 percent off your
bill each month by turning off the lights when you leave the room.* (4)
Change light bulbs
Something as simple as selecting the right light bulb can reduce energy
bills and reduce the amount of heat produced by the light. Certain types
of light bulbs, such as compact fluorescents, are up to four times more
energy-efficient as standard incandescent bulbs, which can save you as
much as 75 percent over standard bulbs each year.* (4)
Demographic Differences
* Home Sweet Home: Homeowners (55 percent) are more likely
to choose an energy- saving activity that requires spending more money
than a renter (40 percent).
* Money, Money, Money: Replacing a heating system with a more energy
efficient model is most appealing to those with incomes over $75,000 per
year (26 percent).
* Lights Out: People under 24 years old chose turning out the lights
as the activity that will save the most money (29 percent).
* Out West: US Westerners are the most conscious of turning out
the lights with 20 percent.
KRC Research conducted the national American Standard survey of 1,035
adult men and women between October 2-5, 2003. The random sample is comprised
of adults 18 and over. The sampling error is +/- 3.1% at the 95 percent
level of confidence.
* Sources:
(1) American Standard - http://www.americanstandardair.com
(2) Energy Star - http://www.energystar.gov
(3) Attic Experts - http://www.atticexperts.com
(4) General Electric Lighting - http://www.gelighting.com
Jacuzzi
UK play Harrogate Town AFC
Jacuzzi
UK, the main sponsor for Harrogate Town this season, put together a staff
team to play at the Wetherby Road ground last Tuesday evening. The squad,
including staff from the company’s Bradford and Hilton sites, initially
played an inter-departmental match followed by a game against a specially
selected Harrogate Town 11, including many players from its first team.
Jacuzzi UK, the Bradford based bathroom manufacturer, also used this event
to launch its new corporate charity for the year, the British Heart Foundation.
Toz
Parsons and Wayne Hill, the team captains from Jacuzzi UK with Neil Astin,
Player Coach from Harrogate Town.
Julian McGarvey, Procurement Director for Jacuzzi UK, who organised the
event and also played on the night said; ‘A large number of the staff
are keen players and supporters of football and the events we have held
in the past have been a great success. The facilities at Harrogate Town
encouraged even more spectators to support their colleagues. At the same
time we thought it was an appropriate forum to highlight the importance
of exercise as part of a healthy lifestyle.’
The event kicked off at 6.30pm with an aerobic warm up for all spectators
and players, courtesy of the British Heart Foundation and promoting the
benefits of exercise for a healthy heart. The football matches then started
at 7.00pm.
Harrogate Town FC - Tel: 01423-880675
Jacuzzi UK - Tel: 01274-654805
Interview
with Wolseley
Group Finance Director Steve Webster
In
an interview with Steve Webster, Group Finance Director of Wolseley about
the company's recently announced preliminary results and dividend policy,
Steve highlights the impact of dollar translation problems but is happy
that the group has out-performed the market.
Q. The numbers have clearly been impacted by the dollar translation. But
taking that into account, are you satisfied with these results?
A. Yes we are. They reflect an out-performance in the market and
they also reflect an out-performance compared to the analysts’ expectations.
The business conditions have been quite challenging during the year and
we've performed very well in the US and Canada in particular and also
in the UK. In addition to the profit performance, we've had a very strong
cashflow performance as well. So all in all we’re quite pleased with
those results.
Q. You’ve increased the dividend by 12.2 per cent this year. What's
the thinking there?
A. We have a progressive dividend policy. We increased the interim
dividend by 12 per cent, so I think to some extent there was an expectation
it would be a 12 per cent increase at the final. But it also reflects
the fact that we have a very strong and healthy cashflow. We have a very
strong and healthy dividend cover.
Obviously each year you have to balance whether you want to pay dividends
or whether you want to spend money on acquisitions or other things. We
feel we have the balance right this year. We've had a record spend on
acquisitions – well over £500m – so a dividend of 12 per
cent obviously reflects our confidence in the future and we think the
right balance between investment in the business and giving some return
back to the shareholders.
Q. Do you expect this rate of dividend increase to continue?
A. I think we’ll have to look at each year as it comes. We
are in a very strong position, so certainly we have the capacity to maintain
that rate of dividend. But I think, obviously, we’ll have to look
at each year. We’ll have to look at the acquisition spend. We’ll
have to look at the cashflow generation and make a decision at that point.
Q. Now you talk about maintaining a balance. But if you take into account
the high free cash generation, the low gearing and the high cover ratios,
don’t you think you could be even more aggressive, or even look at
returning capital?
A. It’s a question of making a choice each year really between
how much money gets returned to the shareholders and how much gets invested
in the business. We actually think we have the balance about right. We've
had that record spend on acquisitions. We've had a 12 per cent increase
in dividends. We've bought the dividend cover down to 2.4 times. Still
a very healthy level of cover, but we are eating into that dividend cover.
So we think all in all we have that balance right.
Q. Now onto the current trading. Paint me a picture of what you're seeing
at the moment?
A. There's been no change of any significance in any of the market
conditions over the last three or four months. We did have a very strong
finish to the year, particularly in the USA and the UK and some that momentum
has carried through into the new year. Perhaps the slowest start really
has been Canada where they’ve had a number of unusual incidents there.
They’ve had the Sars issue. More recently they’ve had the forest
fires and that’s had a temporary dampening effect on the economy.
But there's no fundamental problem in the market there. We think it will
bounce back and it’s just a slowish start to the year for them.
Q. And elsewhere?
A. Well elsewhere, in Continental Europe no change. The markets
are generally pretty flat. What we've been doing and seek to continue
is to grow the sales and profits despite the flat markets. We've got a
good track record of doing that over the last two years. France is probably
quite a difficult market right now. Because of the unemployment levels
being high, those business conditions there are challenging. The UK remains
a good market. Relatively it was one of the best markets we operated in
last year. We expect that to be the case this coming year as well and
in particular the RMI spending – the repairs, maintenance, improvement
spending – on which most of the business depends should remain buoyant
over the coming year.
Q. What reassurance can you give that you're doing everything possible
to hedge against the impact of the dollar, given that it accounts for
such a large proportion of revenues and that it has had such an impact
on these numbers?
A. What we don’t do is hedge the P&L and that’s in
common with most major corporates. And the reason being that if you do
it, it costs you a fair bit of money and it can be for no real benefit
and the effect is only ever temporary. So for those reasons most corporates
don’t hedge the P&L. In our case the currency effect is purely
a currency translation effect. It’s not a transaction effect. So
there's no cash effect, it’s purely a book effect and because we
don’t repatriate earnings, those overseas currency flows stay in
the country in which they are generated. So our view is, and this is a
fairly commonly-held view, it’s not sensible in those circumstances
to hedge the P&L.
Q. On to your two main markets the US and the UK. There seems to be a
growing expectation of interest rate rises. Now surely this will have
an impact on house price growth, equity withdrawal and the RMI market?
A. I think it will have to be a significant rise in interest rates
to have any real impact. The housing markets in the US and the UK are
very strong. The recent statistics, particularly in the USA, have been
even stronger than normal. And all of the fundamentals are good in terms
of the demographics, the drivers of housing demand. The fact of the matter
is we’re not building enough houses in the UK or the USA. So in fact
there is a shortage at the moment. Now obviously if you had a combination
of significant interest rate rises and, probably, growing unemployment,
that could lead to more difficulties in the housing market. But we don’t
see any sign of that. In fact longer-term interest rates – they're
the ones that affect mortgages – they are not as volatile as the
shorter-term interest rates. You can have a fair rise in short-term interest
rates before those longer-term rates have to move up very much.
Q. In the light of the uncertain markets that are referred to in your
statement, are you still comfortable with your commitment to double-digit
sales and earnings targets in the future?
A. Yes we are. The first thing to emphasise, they are longer-term
targets as you said. Some years the growth will be more. Some years it
will be less. Obviously it tends to be a target expressed in constant
currency as well because if you had a 5 per cent or 6 per cent adverse
currency movement as we had this year, there's no way you will generate
10 per cent growth. Having said that, the underlying growth in our earnings
this year is just over 9%. So despite those challenging and uncertain
markets in certain parts of the world, we got pretty close to that double-digit
growth. I think also if you look at our track record, we've got a great
track record of getting near that double-digit target over a long period
of time. We feel that because of the strong market positions our companies
enjoy and the fact that our markets are pretty fragmented means that we
would expect to out-perform the market whatever it does. So it’s
a combination really of the track record we have, the strong positions
we have, the tremendous opportunities for growth that we have, and the
fundamentals for our markets are all positive.
Q. The PBM acquisition took you over the annual £200m acquisition
budget and of course there were the three smaller North American acquisitions
announced recently. But what's the current state of the acquisition pipeline?
A. It’s pretty good. We’re probably being more aggressive
on acquisitions right now and that is reflected in the fact we spent £500m
rather than £200m. Incidentally, the £200m is a target for
bolt-on acquisitions. We always expect to do other acquisitions from time
to time when they come up and meet our criteria. So PBM is a good example
of that. The pipeline is as good as it has ever been quite frankly. The
only issue is that we have to pursue a lot of them before they necessarily
come through. So we’ll see how that goes. But right now we’re
happy with that pipeline and are pursuing a number of possibilities.
Q. And these possibilities, where are these opportunities for acquisitions?
Is it the US or in Europe?
A. They continue to be in both continents actually – North
America, and that does mean the US and Canada, and also Continental Europe.
We also have done a few acquisitions in the UK in the last year and that’s
good to see. That reflects the fact that if they are there we will go
for them. So I think you can expect to see acquisitions on both continents.
It is interesting. If you look back at our track record of acquisitions
over the last four or five years, you will find that one year US Building
Materials had the lion’s share, another year US Plumbing might have
had the lion’s share and this year Europe is the one that gets the
lion’s share. So it just illustrates that we are a little bit opportunistic
and we don’t go out to necessarily do acquisitions in a particular
territory. It depends where the value is and where the returns can be
generated.
Q. Would you consider a move further into Eastern Europe or Germany?
A. Eastern Europe certainly, yes. We’re pleased with the progress
we’re making with our Hungarian and the Czech businesses. Germany,
to be absolutely honest we would take some convincing right now. That’s
been a very difficult market. They’ve had seven consecutive years
of decline in the construction market. Longer-term, I think it’s
a market we would have to be interested in being the single largest construction
market in Europe. But right now we don’t feel the cycles or the immediate
outlook in Germany is very positive.
Q. Gearing now stands at 46.6 per cent and interest cover at 26 times.
Now you're presumably comfortable with this but to what level of gearing
are you prepared to go?
A. We’re prepared to go to 70 per cent or thereabouts on a
longer-term basis. In the short term if a really good opportunity came
up that met our criterion again and we felt the cash generation from an
acquisition would be right, then we would be happy to go over that for
a short period of time. I think perhaps the more interesting statistic
is the interest cover because gearing is one side of it. Interest cover
over the longer term we would be happy to go in the 7-10 times range,
which is still a pretty modest level of interest cover. And as you say,
at 26 times there's a long way to go before you're anywhere near those
numbers. So with the strong cashflow generation we have and that balance
sheet capability, we obviously are very well-placed to do further acquisitions.
Q. And looking ahead, how much of a factor will weaker economic growth
be, both in the UK and the US and the impact on budgets and public spending?
A. Actually a lot of people talk about weak economic growth, but
the UK still has a couple of percent GDP growth. Certain estimates in
the US recently talk about 5 per cent GDP growth. So they're pretty good
levels of growth and we feel that in our arena we should probably be able
to out-perform those sort of numbers in growth terms. So the economies
are set out in a way that we can still get good and profitable growth
unless some shock comes along that we don’t foresee and don’t
expect.