Wolseley
plc: Sales up 20%, Profits up 30%
Wolseley
plc, the world's largest specialist trade distributor of plumbing, heating
and building materials products has issued its regular trading statement
for the eleven months to 30th June 2004, prior to entering its close period.
After currency translation, group sales for the eleven months to 30th
June 2004 were up by more than 20% and trading profit up by more than
30%.
The preliminary results for the 12 months ending 31st July 2004 are due
to be
announced on 27th September 2004.
Overview
The group's businesses in North America and the UK have outperformed in
their markets, generating high rates of organic growth and substantial
increases in profits. The markets in Continental Europe continue to be
broadly flat, although nearly all the group's businesses showed sales
and trading profit growth.
The group's results for the eleven months to 30th June 2004 have benefited
from improving economic conditions in the USA, a positive business environment
in the UK and from higher commodity prices (copper, steel, lumber and
structural panels).
After currency translation, group sales for the eleven months to 30th
June 2004 were up by more than 20% and trading profit up by more than
30%. The adverse currency translation effect on sales was approximately
£340 million and £17 million on trading profit. The group
has achieved an increase in the trading margin compared to the equivalent
period in the prior year.
North American Plumbing and Heating Distribution
The US plumbing operations performed strongly with sales in local currency
for the eleven months to 30th June 2004 up by more than 15%, and trading
profit up by more than 40% on the equivalent period in the prior year.
Virtually all of the sales growth was organic, including the beneficial
effects of price inflation.
Approximately one third of the increase in trading profit was due to commodity
price increases in products such as copper, steel and plastics. The benefits
of this price inflation are unlikely to continue next year, with the likelihood
that commodity prices return to more sustainable, long term average prices.
The trading margin increased substantially over the equivalent period
last year and the business remains on track to exceed its 6% margin target
in this financial year, a year ahead of schedule.
Housing related activity has held up well with the more positive economic
environment having benefited the repairs and remodelling market. The commercial
sector has begun to show signs of improvement, underpinned by increased
government spending. The weakest segment continues to be the industrial
market which is not expected to show any significant improvement until
the latter part of 2004.
Ferguson's market outperformance continues to be driven by the commercial
advantage gained from its distribution centre network and from management's
focus on achieving organic growth in selective markets.
In Canada the construction and housing markets remained strong. In local
currency, Wolseley Canada achieved a double-digit increase in both sales
and trading profit over the equivalent eleven month period in the prior
year.
European Distribution
The UK has been the most positive of the group's European markets in the
eleven months to 30th June 2004, with demand in the repairs, maintenance
and improvement sector remaining strong. Despite the continuing weakness
in the industrial and commercial markets, Wolseley's UK operations recorded
double-digit sales and trading profit growth in the period, with organic
growth of more than 6%.
In France there continues to be an improvement in the business environment
although there are signs of increased price competition. Sales and trading
profit in Brossette were up on last year with organic growth of more than
4% achieved, mainly due to an improvement in sales for public works programmes,
piping and roofing. PBM (formerly Pinault Bois & Materiaux), which
was acquired on 7th July 2003, performed in line with expectations and
is on track to achieve its return targets. Both sales and profits show
an improvement on the comparable period in the prior year.
The markets across the rest of the Continental European businesses continue
to be broadly flat and this environment is expected to continue for the
remainder of the calendar year. Despite this, nearly all of the group's
businesses showed sales and trading profit growth, with double digit increases
in profit being achieved in Luxembourg and Italy. The most difficult business
environments continue to be The Netherlands and Austria, with trading
profit at Wasco being down on the prior year. Tobler, the Swiss business
acquired on 1st December 2003, performed in line with expectations with
sales, trading profit and trading margin all up compared to the similar
period last year.
Outlook
The performance of the group remains strong with its principal markets
of the USA and UK continuing to provide good growth opportunities. A number
of weaker markets, for example, France, are also showing some signs of
improvement. With this improved business environment the prospects for
the group in the next financial year are encouraging. However, higher
commodity prices, which have assisted the group's performance in the first
eleven months, may not be repeated in the next financial year.
Blum
Starts Production of Zero Protrusion Hinges
Blum’s
CLIP top zero protrusion hinge for larder units and cabinets with inner
pull-outs was first presented at the Interzum show in Cologne. The hinge
prevents open doors from protruding beyond the inside edge of the end
or wall panel so that the space inside can be put to optimal use. Following
extensive investment, Blum is now ready to initiate the serial production
of this special new hinge.
This
latest product is based on Blum’s CLIP top hinge with its tried and
tested CLIP mechanism and simple adjusting technology. CLIP top itself
has already received several international awards for its innovative features
and good design.
And like all CLIP top hinges, the new zero protrusion hinge has closed
surfaces and rounded edges which cover the holes drilled for hinge bosses.
This offers an elegant and stylish augmentation to the cabinet.
In addition, Blum has once again opted for ultimate mounting ease. INSERTA
tool-free hinge to door assembly and equally simple removal from the door
are part and parcel of the standard programme. Due to its integrated cam,
CLIP top holds out enhanced adjustment ease. Continuous depth adjustment
(+/-) is consequently possible without much ado. As the screws need not
be loosened for adjustment, they will not work themselves loose.
Blum has not modified CLIP’s tried and tested technology in any way.
The adjustment pin ensures that the hinge has a secure hold.Blum’s
new CLIP top zero protrusion hinge is particularly suitable for larder
units and the advantages are obvious. The hinge has a maximum opening
angle of 155° which affords easy access to interiors. But even if
doors are only opened 90°, inner pull-outs – mounted to 3-mm
high mounting plates – can still be fully extended. There is no need
to pack out carcase profiles. Consequently, this new hinge does not only
mean less work for furniture manufacturers but also optimal ergonomics
for users.
Tel: 01908 285700
Web: http://www.blum.com
Pretty
in Pink after Spectrum Kitchen Makeover
A
couple in the south of England had already purchased a SMEG refrigerator
in Cadillac Pink colour, and had managed to get a cooker supplied in the
same shade. However hard they tried, they could not purchase kitchen cabinets,
doors and drawer fronts in the same colour.
To the rescue came Southampton-based kitchen makeover specialist Spectrum
Interiors – a company renowned throughout the South and South East
for transforming kitchens simply by re-painting existing furniture.
Having obtained a swatch of the SMEG colour, Spectrum Interiors went to
AVKO – as the company knew that AVKO’s colour-matching service
would provide the solution.
Primarily,
AVKOTE Fineline from AVKO is a polyurethane/acrylic paint which has been
developed for transforming white goods – fridges, freezers, washing
machines and dishwashers – in just one operation.
However, it can also be used on mdf and melamine-faced surfaces –
allowing the entire kitchen to be transformed with one simply-applied
product.
Special colours can be produced on request, and the company offers its
colour-matching service thanks to state-of-the-art spectrometer analysis.
No primer is required, and the coated-surface is touch-dry in less than
two minutes. Full curing takes 24 hours to give a highly durable finish
that will not crack, flake or peel.
It is a two-pack process, a dust coat followed by a single top coat to
cover surface perfectly. All the user need do is to ensure that surface
is clean before application.
Apart from bringing a totally new appearance to white goods, cupboard
doors, and worktops, it also gives the equipment a high level of scratch
resistance.
Standard finish is a soft satin, yet the gloss level can be increased
by adding additional hardener or by applying AVKOTE Clearcoat.
Adding AVKOTE KF can further increase the thickness and durability of
the paint. This thickening agent produces a finish which is extremely
hard and ‘virtually impervious’ to damage. It has the added
benefit of helping to provide a smoother finish for the paint on more
uneven surfaces.
For those that do not need to get an exact colour-match, there is an extensive
range of shades from which to choose – Pantone, RAL, BS, NCS and
N-SCS.
By using high quality pigments in the formulation, the paint offers a
high resistance to fading – ensuring the kitchen keeps its pristine
condition for years to come.
Supplied in 1 litre, 5 litre and 10 litre containers, AVKOTE Fineline
is cost-effective – giving an average coverage of 11.8m2/litre.
Tel: 023 8045 5855
Email: mailto:sales@avko.co.uk
Web: http://www.avko.co.uk
Brandt
Offers Free Two Year Guarantee on all Built-in and Freestanding Products
Brandt,
the mid market appliance brand has launched a new consumer promotion -
a free two-year guarantee on all current built-in and freestanding products
until 31st August 2004. ‘The 2004 range is packed with great features,
and this promotion is geared towards helping dealers sell more.’
says the company.
Application forms for the free 2-year guarantee are available from Brandt
Marketing on 01256 308 068 or from Brandt Area Sales Managers.
Email: mailto:marketinguk@elcobrandt.com
Web: http://www.brandtuk.com
KBSA
Appoints New National Chair and Corporate Members Chair
The
KBSA has appointed a new corporate members chair and a new national chair
at it’s 27th Annual General Meeting (AGM), held earlier this month.
Jane Cheel (left), owner and managing director of Underwood Kitchens is
the new national chair and Barbara Leech (right), sales director at Britannia
Living Ltd is the new corporate members chair.
Barbara
Leech wants to make bringing youngsters into the industry a priority during
her term of office.
‘My big passion is to make our industry interesting to the youth
in the Country and hopefully start them thinking of the industry as their
chosen career option as early as possible,’ said Barbara at the AGM.
Jane Cheel has pledged to do more to weed out rogue traders and believes
that the new National Training Group, which is being formulated, will
contribute to this.
‘We are extremely lucky to have such dedicated and passionate leaders
of the KBSA,’ said KBSA Chief Executive, Graham Hayden.
‘Jane and Barbara are extremely well respected in the industry and
have a wealth of experience and expertise that will benefit the growth
and development of our association.’
This appointment marks the first time in the association’s history
that both positions have been held by women at the same time.
Whitehall
to Breathe New Life into Ailing Quality Mark
Chancellor
Gordon Brown is set to give the go-ahead for an overhaul of the Quality
Mark, its anti-cowboy builder initiative.
The move comes as it has emerged that the government has called in an
external consultant to address industry concerns over the scheme, which
was introduced in June 2001, and to review its future.
A senior Whitehall source said last week that proposals for a streamlined
version of the scheme were with Treasury officials as part of the government's
spending review.
The source said that changes would include alterations to the six-year
warranty scheme, which contractors are obliged to take up under the Quality
Mark. He said: 'We have sent proposals to the Treasury for a reduction
in the length of time that the contractors have to provide guarantees
(warranties).'
Contractors object to the idea of a warranty because they already belong
to warranty schemes through trade bodies. The source said he expected
that the length of the warranty would be reduced from six to three years.
The Treasury will also reassess how the scheme is to be paid for: contractors
are currently expected to pay a percentage of annual turnover to become
eligible to join the Quality Mark.
The Whitehall source noted that the government aimed to bring in changes
in the Quality Mark, rather than drop it, as it was a Labour party election
manifesto commitment.
The source said this was why Brown had taken such an interest in the scheme.
He said: 'The Treasury is keen to sort out Quality Mark within the spending
review. Nigel Griffiths (the construction minister) has proposed a model
for a way forward and it looks like this will be implemented.'
The DTI has appointed an independent consultant, Dan Bernard, to address
concerns over the project.
A DTI spokesperson said: 'The DTI has brought in a business consultant
to focus on the future of QM. Dan Bernard has extensive experience in
the retail sector, at board level, in strategy formulation and in management
of major business change.'
Bernard has worked across the retail sector and was also formerly managing
director at B&Q Supercentres.
The DTI spokesperson said that the options for the scheme are currently
being developed and are being discussed with the industry.
The spokesperson said: 'The options centre around aligning industry schemes
more closely with Quality Mark objectives in order to focus on delivering
consumer protection-based outcomes.'
The spokesperson added that the aim of the review was to boost take-up
of the scheme by working with the more reputable trade bodies that are
committed to the agenda.
Hundreds
Queue to Retrain as Plumbers
A college flooded with people wanting to retrain as plumbers warned that
high earnings were neither guaranteed nor typical. The warning came after
hundreds queued at the Leeds College of Building to try and secure one
of the handful of places available on plumbing courses.
More than 400 people turned up to take an entrance exam to get on two
18-place day courses and a night course with another 18 places. There
were also places available on an NVQ gas fitting course. The courses are
specifically aimed at mature students who want to move into plumbing from
others trades or unemployment.
The college’s full-time courses aimed at school leavers are already
full after being massively oversubscribed.
But even as they queued outside college yesterday the candidates were
handed leaflets explaining that newspaper reports of plumbers earning
£60,000 a year and more did not reflect typical incomes.
The leaflet stressed most plumbers earn between £18,000 and £30,000-a-year.
A spokeswoman for the college said: 'We tell people they can make a reasonable
living as a plumber but its usually nothing like the £70,000 or
£80,000 you see quoted in the media.
'Its true that if someone is prepared to work incredibly long hours these
earnings can be achieved by some people but its not typical.
'It will be interesting to see what happens to salaries once the skill
gap which seems to exist closes.'