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Nobia Reports Higher Profit Margins in 2004 Results

Nobia's net sales reached SEK 11,337m, a climb of 22 per cent compared with last year (9,273m). Sales growth was generated equally by acquisitions and organic growth. lntegrating the UK business, Gower, and three Poggenpohl stores in the UK contributed to the sales growth from acquisitions in 2004. Favourable demand and the measures implemented during the year aimed at developing both established and new distribution channels led to organic growth of 11 per cent. Organic growth climbed to 12 per cent in Q4.

The Group's operating profit before goodwill amortisation (EBITA) climbed by 54 per cent to SEK 963 million (625) and is a result of the Group's continued growth and higher cost effectiveness. Product supply costs continued to fall, despite rising raw material prices. Material costs fell by around SEK 110 m in 2004.

The accounts for 2003 included a provision of SEK 98 million for the closure of Goldreif, the German business unit. The closure was carried out in 2004 and has not had any further effect on profits.

The operating margin before amortisation of goodwill rose to 8.5 per cent (6.7). Excluding settlement expenses for Goldreif the operating margin in 2003 was 7.8 per cent.

Earnings per share after dilution rose by 47 per cent to SEK 8.59 per share (5.84). Between 2001 and 2004 the annual average earnings rise per share was 22 per cent.

The operating cash flow improved considerably in 2004 and was SEK 654 million (260) before corporate acquisitions and sale of businesses. The improved cash flow was mainly due to better profits and better control of operating capital.

The UK business is introducing measures to bolster the operating margin. A decision has been made for Magnet to cease manufacturing of doors at the Keighley site and begin adjusting to order-only manufacturing at the Darlington site. lnvesting in upgrading and renovating the Magnet store network has intensified.

The acquisition of the leading Austrian kitchen manufacturer, EWE-FM, was finalised at the beginning of 2005. EWE-FM has sales of around SEK 600 million and a market share of around 16 per cent in Austria. EWE-FM boosts Nobia's presence in Continental Europe, provides interesting break-through opportunities in Eastern Europe and will contribute to synergy effects for the entire Group.

EWE-FM will be included in the Group's accounts from January 2005.

The UK business
Demand in the UK market is estimated to have grown by around 3 per cent.

Net sales rose 38 per cent to SEK 5,295 million (3,848). The Gower business unit, which was acquired in December 2003, contributed SEK 1,153 million. In December 2003 Gower contributed SEK 68 million. For comparable units and excluding currency effects, sales of kitchens, bathroom interiors and joinery, increased 8 per cent.

Sales of kitchen interiors climbed 13 per cent compared to 2003, for comparable units and adjusted for currency effects. Flat-pack kitchens continued to expand rapidly, mainly thanks to the nationwide DIY chains' continued investment in establishing stores. Flat-pack kitchens accounted for 30 per cent of sales for the UK business in 2004.

Sales of rigid kitchens rose 8 per cent, of which the biggest growth came from sales to professional customers. Sales directly to consumers also rose. Effects of the ongoing store investment programme have been positive with increased orders and rising average order values. The investment programme has however had only a marginal effect on profits in 2004. A total of 19 stores were renovated in 2004. Sales of joinery products fell 2 per cent. Sales of bathroom interiors also fell.

The operating profit before amortisation of goodwill was SEK 385 million (297). Profits also include gains from sales of leases and properties amounting to SEK 45 million (66). The operating profit was positively affected by the consolidation of Gower and higher volumes and average order values in the kitchens segment.

Lower sales and gross margins in the joinery segment negatively affected the operating profit. In addition, costs increased for administration and sales. Stock was written down by SEK 40 million, mainly in preparation for the transfer to order-only manufacturing and closure of door manufacturing.

The operating margin was 7.3 per cent (7.7).

Fourth quarter 2004
Demand remained good in Q4 despite a certain degree of weakening towards the end of the quarter.

Sales increased 28 per cent to SEK 1,250 million (980). Organic growth was 8 per cent and stemmed from continued increased sales of flat-pack kitchens. Growth was also positive for rigid kitchens. Joinery and bathroom interiors are continuing to show a negative sales trend. The operating profit before goodwill amortisation was SEK 71 million compared to SEK 65 million in Q4 2003. The operating margin fell to 5.7 per cent from 6.6 per cent. The profit from the sale of leases and properties amounted to SEK 45 mllion (21). The poorer margin was mainly attributable to joinery and increased costs for administration and sales.
Depreciation of stock of SEK 40 million negatively affected the margin in Q4.

A decision was made in Q4 to implement measures to improve the operating margin. It was decided to gradually cIose down manufacturing of doors at Magnet's site in Keighley. This means that the Keighley site will concentrate in future on manufacturing of windows and acting as a stock distribution centre for the store network. The close down of the door manufacturing is expected to positively affect profits from the second half of 2005.

A decision was also taken to invest in the conversion of Magnet's factory in Darlington for make to order manufacturing. Magnet will continue to invest in the upgrading of its stores.

Magnet had 213 stores at the end of the year, of which 7 within C.P Hart.

The Continental European business
Demand on the German market is estimated to have been stable compared with last year, while demand in the Netherlands is estimated to have continued falling.

Net sales increased 6 per cent to SEK 2,031 million (1,920). Adjusted for currency effects and for comparable units, sales rose 8 per cent. Three Poggenpohl kitchen studios in London were acquired during the year, which are included in the accounts as from April.

lncreased exports to the US and the UK boosted sales as did the export of flat-pack kitchens via the Group company Magnet in the UK.

Following many years of negative growth the organic growth in Germany is once again positive. The increase is thanks to flat-pack products.

The increased sales of flat-pack products means that they now represent 25 per cent of sales.

Sales in the important Netherlands market continued however to fall.

By year-end Poggenpohl's studio concept had been introduced in 302 stores, which means an increase of 52 stores during the year.

The operating profit before amortisation of goodwill was SEK 131 million (83). The operating margin increased to 6.5 per cent (4.3). lncreased sales volumes, along with increased cost effectiveness and lower material costs positively affected profits and margins. Currency effects are estimated to have negatively affected profits by around SEK 8 million, mainly as a result of the weaker US dollar.

The close down of Goldreif was carried out during the year. The close down has not affected profits during the year.

Fourth quarter 2004
Sales increased 6 per cent to SEK 509 million (481) during the year. The organic growth was 5 per cent. The operating profit remained unchanged at SEK 32 million (32) while the operating margin was 6.3 per cent (6.7). The operating profit was also negatively hit by currency effects.

Indesit Sales up 5.6% for 2004 but Pre-Tax Profits Dip

2004 was another year of growth for Indesit with sales of Euro 3,175m and operating profits of Euro 248m, both figures slightly up from 2003. Pre-tax profits dipped slightly at Euro 185m, down from Euro 197m in 2003. Vittorio Merloni remained upbeat:

‘For a year marked by fierce competition and instability in currencies and raw material costs and by the arrival of the new CEO Marco Milani half way through the year, I’m satisfied with the results achieved and optimistic about the future’.

On the innovation front, a new Innovation and Technology department was created to develop research efforts across all the business areas, following guidelines issued in 2004 by the Innovation Committee.

On the production front, the company will benefit from new plants reaching capacity – the washing plant in Russia, which came on line in April 2004, and the cooking and cooling plants in Poland, which came on line in May and October 2004, respectively.

Regarding products, over the coming months European markets will see the arrival of the new Ariston Extendia line (an 8.5 kg washing machine and a fridge with a low-energy consumption ‘bar’ area) and Indesit’s On-Time line, with user-programmable wash cycles, and built-in line, Experience.

Further, from 2005 on, the name change will guarantee Indesit Company more effective recognisability at an international level, which will also strengthen its best known brand.

Key results 2004
Sales at 31st December 2004 amounted to Euro 3,175m (Euro 3,008m in 2003).
Gross operating margin reached Euro 405m (Euro 387m in 2003).

Operating margin was Euro 248m (Euro 246m in 2003).

Profit before tax amounted to Euro 185m (Euro 197m in 2003).

Net financial indebtedness at 31st December 2004 stood at Euro 210m, against Euro 192m at 31st December 2003. The debt/total equity ratio at 31st December 2004 moved to 0.31 (0.33 at 31st December 2003) including the relative fiscal effects.

Häfele Appointed UK Distributor for Gorenje

The publication by Häfele of the second edition of its Space Aid for Kitchens catalogue heralds the Rugby company’s move into the kitchen - and lifestyle - appliances marketplace.

A key element of the move, according to sales director Ray Fisher, is the appointment of Häfele as UK distributor by Slovenian appliance manufacturer Gorenje, producer of a wide range of cookers, hobs and other appliances. Single and double ovens in stainless steel are ‘very high on quality and reasonable on price’, he says, and confirms that Häfele is stocking Gorenje in big numbers.

Cookers include three single 600mm ovens in a range of specification options and each equipped with electronic timer units and an internal capacity of 56 litres. They also come as standard with fan assisted cooking, infra red grilling and Gorenje’s own AquaClean auto cleaning programme. Two stainless steel double oven units built for the same cabinet space but rising to a height of 880mm are also listed in Space Aid 2 with a top oven capacity of 34 litres and bottom oven of 44 litres. All ovens in the Gorenje programme come with triple glazed access doors which remain cool to the touch, regardless of the cooking temperatures being used.

Häfele is also running with a collection of ceramic and solid plate electric hobs by the same maker with four and five burner stainless steel gas hobs in support. Each is available in conjunction with chrome plated steel hob guards for worktop fixing, steel or aluminium decorative pilasters and two portable induction hob models are also listed for complete flexibility to cook at any point in the kitchen.

In addition to cookers, Häfele will also carry fridges and freezers by Gorenje in the form of independent larder units or as combined, double height fridge-freezers. Individually, fridge capacity is 143 litres and freezers 86 litres, and each is built to dimensions of 820mm x 596mm x 545mm; combined built-in fridge-freezers are larger with a combined capacity of 239 litres and dimensions of 1766mm high x 540mm wide and 545mm deep.

‘Lifestyle’ appliances by Gorenje include a wine cooler which measures 600mm x 600mm with a height of 870mm; the unit is powered by a fan cooling condenser/compressor which allows it to be housed directly below a worktop with no requirement for additional ventilation. The Gorenje wine cooler model maintains a constant temperature of between 5ºC and 15ºC, features a coated glass door to protect wine from ultra violet rays, is fitted with anti-vibration dampers and maintains high internal humidity to ensure that corks do not dry out; wine is stored on easy-glide, pull out telescopic shelves for ready access.

A drinks chiller cabinet is also available together with that all-important lifestyle accessory - an ice-maker. The storage shelves of the drinks chiller are arranged for bottles but also for glasses or cans behind a one-piece glass door for easy visual access; chilled air in a temperature range from 1ºC to 10ºC is fan circulated to ensure very fast cooling and even maintenance of chosen temperatures.

The ‘gotta havit’ ice maker features an auto replenish feature to ensure that mine host never runs out of ice on crucial hospitality occasions!

Contact: Ray Fisher
Tel: 01788 542020
Email: mailto:ray.fisher@hafele.co.uk

Trade Partners Given Special Section at AMDEA Show

A special section of The AMDEA Show is being created for trade partners offering services to the industry. Domestic and General and BEAB are the first to take stands at the show, being held at the NEC on 24 – 26 April this year.

The special section will be an added attraction to dealers attending the show. ‘D&G is well known and respected for the company’s range of services to both retailers and manufacturers, and BEAB is the UK’s own independent Approvals Body which ensures the safety of products that we make and the retailers buy in,’ said AMDEA Director General Peter Carver.

Registrations for the show have already topped 1,000, even though exhibitors have only just begun to send invitations out to their customers. And the quality of registered visitors is high. Nearly 90% of the dealers retail built in product, and 12.5% are kitchen specialists. 54% are in floorcare, 59% in small appliances – and 44% of registrations are from owners or proprietors. The regional breakdown shows that 25% of the dealers come from the South East region.

‘Given that we have hardly even begun the process, this is a very encouraging start,’ said Mr Carver. ‘The main mail out will begin in the next few days, and in the coming weeks we will be sending 100,000 invitations to the Show.’

A unique hospitality area is being put in place for Exhibitors to entertain and talk business with their customers. Entrance will be by special pass, and waitress-service refreshments can only be purchased using a credit card-based system.
‘These facilities will be for the exclusive use of manufacturers who support the Show. Companies who have decided not to support this initiative should not think they can turn up and do business with the visitors,’ said Mr Carver.

Tel: +44 (0)20 7405 0666
Email: mailto:info@amdea.org.uk

‘8’ of the Best from Uform

Uform, Irelands biggest distributor of kitchen doors and accessories, has just launched its new ranges, featured as ‘eight’ kitchen combinations.

These new designs, span the entire range of requirements from rural living, classical timeless elegance to contemporary city living.

The focus remains very much on ‘your kitchen your choice’ with design flexibility and creativity being the guiding focus of all the new designs.

For those who prefer the clean lines and streamlined details of modern living Uform has expanded its ‘city’ offering with the additions of Avonlea Ash Modern and Merlot Walnut Urban (pictured). The rich, rustic tones of ‘rural’ living have also been captured within the Avonlea Ash Rural and Avonlea Oak ranges. The harmonious blending of the two themes helps create a traditional atmosphere with urban accents leading to a feeling of ‘timeless’ elegance. Beaufort Oak Shaker, Avonlea Painted (available in eight different pastel colours) and the Merlot Walnut and Ivory are examples of this styling option.

Eamon Donnelly, Uform Managing Director, states ‘The beauty of the collection lays in its versatility. These kitchens have been created to enable you to be flexible when designing to your customers needs and to use the same door with varying acessorisation to create a rural or urban look. Avonlea Ash Rural, for example, can, with a simple twist of style comfortably take on a more contemporary feel with the varying use of key accessories.

‘By keeping our finger firmly on the pulse of innovation and design and incorporating major European trends such as radiused cornices and end quadrants, we are in essence creating a truly aspirational look. We are offering our customers increased choice and the ability to increase added value and subsequent margins.’

Tel: 02879 301166
Email: mailto:marketing@uform.co.uk

Lofra Announces New Distribution

Italian range cooker manufacturer, Lofra, has appointed M&M Kitchen Accessories as its new distributor for Northern Ireland.

The Lofra range will complement M&M Kitchen Accessories’ existing portfolio as the Italian manufacturer will be supplying the company with a full range of gas and dual fuel, free-standing and range cookers.

Chris Rogers, sales and marketing director for Lofra UK, commented:
'The distribution arrangement with M&M Kitchen Accessories will be instrumental in growing the Lofra business and we look forward to working with the company as we continue to raise the profile and demand for the brand in Northern Ireland.'

Tel: 01675 479 600

Victoria & Albert’s Taylor to Move to North America

The British freestanding bath manufacturer, Victoria & Albert Group, has targeted North America to produce significant sales growth in 2005 following another record trading year throughout the world. The announcement follows last year’s major investment programme in the company’s international manufacturing & distribution centre in Worcester, South Africa, where capacity has been more than doubled in the past year. Victoria & Albert Baths has been trading in America for two years and now has a sales and customer support office in North Carolina, complete with extensive warehousing to service the East Coast and Southern States.

Spearheading the campaign is Victoria and Albert Group’s Commercial Director, Edward Taylor, who has been with the company since its inception in 1997 and originally set up the American company. He is moving to become head of Victoria & Albert LLC based in Atlanta, Georgia. Reporting to Group Managing Director, Joe Matthews, his key role is to co-ordinate penetration of the US premium bath market with Victoria & Albert’s extensive range of classic & contemporary freestanding models. Made in 100% solid surface Quarrycast™ these offer significant technical advantages over cast iron, which is still standard for the roll top baths in the USA. Quick to recognise the ability of Quarrycast™ to provide superior insulation, bathing comfort and installation options, outlets are snapping up Victoria & Albert baths to make exclusive European styled displays.

Edward Taylor, Victoria & Albert Bath LLC’s Commercial Director says, ‘This is a great success story for a British company already dealing in over 20 countries throughout the world and America offers huge opportunities for the brand. American dealers and consumers alike have warmed to Quarrycast™ because it offers the strength, style and stability of cast iron unlike cheaper alternatives such as twin skinned acrylic that underperform in the predominant American cast-iron market. In the next couple of months we’re having a full media launch which will really get things moving – backed up with new literature and stocks to support our dealers.’

UK and European trade customers eager to check out the latest trends in freestanding bath design can see Victoria & Albert’s latest contemporary model being launched this May at Bathrooms & Kitchens EXPO, London. The company is also exhibiting at ISH Kitchen & Bathroom GULF, Dubai - the Middle East showcase for kitchen and bathrooms.

Web: http://www.vandabaths.com

De Dietrich Offers Free 2 Year Guarantee on all Products Throughout 2005

To celebrate its 25th Anniversary in the UK, De Dietrich is offering a free 2 year guarantee on all products in its new 2005 range – for the whole of 2005.

This offer, which applies to mainland UK only, is for all appliances included in the 2005 brochure and covers the full cost of parts and labour for two years from the date of purchase. The application form must be filled in and returned within one month of purchase.

De Dietrich sells a wide variety of kitchen appliances including the biggest range of induction hobs on the market, pyrolytic ovens, steam technology, hoods, range cookers, dishwashing and laundry products as well ads its intelligent ICS collection.

One of the highlights of the new range is that it is expanding its offer of non pyrolytic ovens, in order to make the De Dietrich quality available to a wider audience. All ovens in the range, pyrolytic and non pyrolytic are built to the highest specifications and offer many features that would normally be associated with top of the range models only.

For a supply of 2 Year Guarantee application forms contact your local De Dietrich Area Sales Manager or De Dietrich Marketing on 01256 308 068. E-mail mailto:marketinguk@elcobrandt.com or visit http://www.dedietrich.co.uk.

Maytag UK is Number One in Premium Refrigeration

From January to December 2004, Maytag UK was, by value, the number one player in the over £1500 sector for side-by-side refrigeration*. Maytag UK leads the way outselling its nearest competitor two to one.

Richard Thompson, Managing Director, Maytag UK remarks, 'This is great news for us. We have proudly built a solid and committed dealer base since we began marketing the brands back in the year 2000, and now all our efforts are being rewarded. A key driver of this growth is our strong portfolio of innovative products with styling and designs that are highly sought-after by consumers. Not only do they look good and are very dependable but they also deliver exemplary performance. This coupled with our drive towards delivering exceptional service to our consumers has positioned our brands at the forefronl of the discerning customer.

'The Maytag collection of refrigeration brands includes Amana, Maytag and Admiral and has been pivotal in expanding the American refrigeration market in the UK. Design, performance and innovation with stainless steel finishes on genuine American refrigeration are priceless. Although originally limited to ultra-premium products stainless steel finishes are now affordable in all market sectors through the Maytag family of brands.'

The Maytag portfolio has marched on rapidly since the early days and includes everything from laundry, dishwashers to range cookers and most recently small appliances with the introduction of the Handy Chiller. Maytag has a lot to offer retailers looking for genuine 'one stop shopping' opportunities and to reap the rewards of the buoyant stainless steel market with genuine American refrigeration across all market sectors from one manufacturer.

*Gfk January-December 2004

Aqualux Fulfils South African Order in Record Time

Aqualux, the bath screen manufacturer, has scooped a deal to supply over 3000 of its products to a major supplier of shower surrounds in South Africa.

AG Industries based across Southern Africa, contacted Aqualux after a major review of its shower enclosures in 2004. Having already established a 10-year working relationship with the Wednesbury based company, AG Industries wanted a contemporary looking enclosure to add to its range.

Aqualux was able to supply its Energy Collection and Walk in Shower within a month of the order being placed. The first delivery of 1500 products was delivered at the end of January, with a second delivery due in February.

James Cadman, managing director of Aqualux, said: 'The order from AG Industries is a great start to trading in 2005. Our Energy range has been specifically designed to fit with the minimalist design that is very fashionable at the moment. These contemporary designed products will fit the gap in the South African market that AGI are looking to fill.'

Managing Director of AG Industries, Clive Kalil said: 'Aqualux was able to provide us with high-quality products within a very short timescale. We are very much looking forward to continuing a long-term working relationship to make sure we continue to provide the South African market with as much choice as possible.'

Aqualux recently extended its Energy range with launch of the Energy Sail and Energy Oval late in 2004. The screens come in a choice of polished silver or white finishes with clear glass,designed to suit any bathroom. They both feature contemporary, frameless styling, clean, curved lines and offer additional features such as integral shelves and handles, additions which are proving to be popular with customers in the UK.

The designs include Aqualux's glass clamping and sealing system, 6mm toughened limescale-resistant glass and rise and fall hinges for easy opening. The Energy Sail bath screen is 890mm in width and 1500mm in height. The Energy Oval is slightly larger at 890mm by 1540mm. There is a 200mm adjustability for out-of-true walls.

Tel: 0870 241 6131
Web: http://www.aqualux.co.uk

Jacuzzi Teams with Pininfarina to Create Morphosis® Line of Whirlpool Baths

Jacuzzi, known for originating hydrotherapy, announced a new initiative called Morphosis and unveiled a new series of whirlpool baths - Alpha, Gamma and Sigma - that was designed in conjunction with Pininfarina, the Ferrari car designer.

Morphosis is a new Jacuzzi initiative focused on seeking out ventures in order to combine the best design aspects from outside the bath industry with the performance and technology Jacuzzi is known for.

From the Greek word 'morphosis' - to take shape, and also Morpheus, the god of dreams, the new Alpha, Gamma and Sigma whirlpool baths merge high-end design with hydrotherapy innovation. The fluid shapes of the bath tubs pair ergonomics with artistic design for a product that will be the centerpiece of the bathroom.

'This first series of tubs coming out of the Morphosis initiative are luxury whirlpool baths designed for the most discerning homeowner,' says Kent Baker, president of Jacuzzi Whirlpool Bath. 'In this initiative we actively sought to integrate astoundingly different and forward-thinking design with what we know best - the movement of water. Our partnership with Pininfarina brings together two brands known for performance and innovation to elevate bathroom design to a whole new level.'

Each of the three whirlpool baths in the Morphosis® line envelopes the bather with design elements that unite technology with simplicity:

Alpha: a two-person whirlpool tub features a sleek design and an arch that runs above the bath to represent a protective gesture; the Alpha tub has four body and eight back jets that deliver relaxing and rejuvenating hydrotherapy. Chromatherapy lighting enhances the experience, including four translucent fiber optic lights that radiate from the jets and two LED lights that emit ambience from the arch.

Gamma: a corner whirlpool bath that offers ample space to enjoy the multi-sensorial experience; the Gamma tub has similar jet and chromatherapy lighting as the Alpha.

Sigma: a single bath that cradles itself around the bather to maximise the hydrotherapy experience; the Sigma tub has nine jets for back and body massage, and two translucent fiber optic lights from the jets and two LED lights from the arch to enhance the mood.

Matching Morphosis® china suites will be introduced in late 2005.

Web: http://www.jacuzzi.com

A New Era for Lathams at Gateshead

Timber and panel distributor, James Latham’s newest depot at Gateshead is already proving to be a success with significant sales growth achieved in the depot’s first three months of trading.

There has been an almost seamless transition from ‘FH Thompson’ to ‘James Latham Gateshead’ and the new depot is taking shape with the completion of the new signage, vehicle livery and stationary.

As Geoff Hall of Gateshead says, ‘We have had an excellent response from customers regarding the changeover from FH Thompson to James Latham, and a number of our North-East based panel accounts have now been transferred from Ossett over to Gateshead.’

£15,000 worth of investment has been ploughed into Gateshead so far, to install a new racking system, allowing increased stocking of Melamine Face Chipboard and MDF, with even further improvements to come.

Geoff continues, ‘Previous customers in the North East were serviced with Melamine from Ossett, so more stock closer to the ground will lead to improved customer service, and we will hopefully be able to use our new depot to help us develop new accounts.

‘We are continually planning new work at Gateshead, and have a new reception area and showroom for our customers.’

James Latham Gateshead is also moving further towards becoming a ‘one stop shop’ for customers, and is now able to provide products such as Texwood, a wider range of Birch Plywood and veneered MDF. The depot is also adding to its selection of laminates and is carrying new products such as LG HI-MACS® Natural Acrylic Stone™.

James Latham continues to add to its extensive range of panel products and high quality hardwoods, softwoods and timber flooring products. For further information or to receive a brochure or product guide, please e-mail the marketing department at mailto:marketing@lathams.co.uk. Alternatively, visit the James Latham website at http://www.lathamtimber.co.uk.

Franke Sets up a Subsidiary in Japan

Franke Coffee Systems Japan Ltd, which was set up in Tokyo in December 2004, has started operating. For the first time Franke is represented in Japan by its own sales and service company for professional coffee machines. This means Franke is investing further in strategic growth markets and new product generations.

Franke has been operating in the Japanese market for several years. Despite the fact that this is a difficult market to gain access to, Franke has been able to overcome the cultural and trade barriers and successfully market fully automatic coffee machines in Japan. The high quality standards of the Japanese market have been met thanks to the outstanding production quality standard in Switzerland and Germany. Until now sales have been made exclusively through Japanese sales partners. The market knowledge built up over several years and Franke Coffee System's multi-cultural expertise form a solid foundation for the success of its own subsidiary in Japan.

An increasing tendency to drink coffee has been noted in this tea-drinking nation - and in particular the consumption of trendy beverages such as cappuccino, caffe latte etc. Franke will be able to gain market share by creating new concepts for drinking coffee at the workplace for example. Japanese needs will also be taken into account by further developing the existing Franke product portfolio.

http://www.franke.co.uk

Dual flush WCs: Water Saved Could Fill Lake Windermere

Over the last 35 years, the UK has displayed a huge and seemingly unquenchable thirst for water.

This has been fuelled by the rising number of homes which has grown by over 30% since 1970. This trends looks set to continue with the new ‘Homes for All’ initiative announced by the Office of the Deputy Prime Minister in January outlining plans to deliver an additional 1.1 million homes in the South East by 2016.

Water consumption has also risen dramatically. Appliances such as dishwashers and washing machines are now commonplace and our increasingly active lifestyles have led to far more frequent bathing and showering. As a result, the average person now consumes a staggering 150 litres per day - half as much again as they did in 1970!

The challenge of increased water consumption has been compounded by the effects of global warming. Exceptionally high average temperatures were recorded in England during the 1990's while four of the five hottest years since 1772 have been in the last fourteen years.

Simple solution, dramatic results...
In 2004, new legislation was introduced that enabled many of the sections of The Water Act 2003. The result is that Government Departments, local authorities and any other public bodies must now take steps to conserve water. The general public and industry also have an important part to play.

On average, we each use a toilet six times a day. The single flush toilet accounts for around 30% of domestic water consumption and up to 90% of that used in the workplace. Although the water saving benefits of dual flush WCs have long been advocated, they can no longer be ignored. If just half the UK population used dual flush toilets, the water saved would fill Lake Windermere in a little over three years*!

With this in mind, bathroom products manufacturer Thomas Dudley Ltd has enhanced its Dudley Turbo 88 syphon with a water-saving Duoflush facility. This combines the reliability and familiarity of a syphon with the water saving benefits of dual flush, previously only available in flushing valves. ‘However, unlike unreliable valves, the Turbo 88 cannot leak and is a true water waste preventer. It is WRAS approved and is the first syphon with full and reduced flushing capabilities to comply with the Regulator's Specification.’ says the company.

When the WC lever is depressed and released in the normal manner, the Turbo 88 syphon delivers a full flush that is as reliable and efficient as ever. However, when the lever is depressed and held down, the syphon now delivers a reduced flush that provides water-saving benefits in 6, 7 and 9 litre low level applications. For the spares/replacement market, the Turbo 88 Duoflush is readily available through most plumbers and builders merchants. It can also be supplied as an optional extra in most Dudley plastic WC cisterns.

Thomas Dudley has a range of other water-saving dual flush products including concealed cisterns, flushing valves and electronic flushing devices. Further details are available at http://www.thomasdudley.co.uk

* Based on each person flushing a 6/4 litre dual flush WC, six times per day.

East Coast Fittings - 25 Years of Growth

UK manufacturer and supplier of quality furniture fittings and components, East Coast Fittings marks its 25th year in business with a major expansion of its production and distribution facilities following the company’s recent move to Rearsby in Leicestershire.

The 80,000 square feet premises houses both production and logistics centres as well as administration, head office and training facilities. There is also an impressive showroom being completed and the staff of 65 benefit from superb views while the newly completed by-pass connects ECF's headquarters directly to the national motorway network.

Managing Director Derek Goodman says that the new facility has given them the long awaited opportunity to carry extensive stocks of a wide variety of product lines so that their service to customers nationwide becomes even better. ‘It has also given us the ability to bring certain manufacturing areas in-house where we can control and maintain the high quality of product - specifically in carcase and mitre-framed door production’ he explains.

The stock holding at the distribution warehouse includes nine ranges of vinyl wrapped doors for the kitchen market, internal cabinet wirework, an extensive selection of handles and other decorative hardware, stocks of the entire Blum range of fittings and internal storage systems and Hera lighting products and systems.

While stock holding is crucial to East Coast Fittings' service, so too is the company’s ability to design, innovate and manufacture to order. Sales Director Glen Coleman explains that the company is very active in developing bespoke products for mainstream manufacturers. This ability to work with customers on product design and development has been particularly successful in the bathroom manufacturing sector where ECF has developed products like shower door hinges for a number of Britain's leading names in the industry.

Derek Goodman stresses that the company’s position in the market is underpinned by product quality: ‘We are only interested in supplying fittings and components that will offer our customers the very best in design and performance.’ Hence East Coast Fittings has associations with internationally renowned manufacturers like Blum and Hera.

As far as Blum is concerned East Coast Fittings find that it has increasing demand for the premium range products like the Blum Tandembox full-extension drawer systems, the integrated Blumotion self-closing systems and the Orga-Line internal organisation products.

With Hera too, the products being demanded become increasingly sophisticated and at the cutting edge of fitted furniture designs.

Handles are another case in point with East Coast Fittings actively developing new designs to meet current fashions.

Tel: 01664 424288
Email: mailto:sales@eastcoastfittings.co.uk

World's Largest Kitchen & Bath Event is Moving to Las Vegas

More than 900 kitchen and bath companies will showcase the latest products and cutting-edge design ideas at the sold out Kitchen/Bath Industry Show & Conference (K/BIS), May 9-12, 2005 in Las Vegas, NV. More than 50,000 national and international professionals are expected to attend K/BIS, the world's largest international trade event dedicated to the kitchen and bath industry.

Targeting dealers, designers, distributors, retailers, consumers, home centres and many other high-quality kitchen and bath professionals, K/BIS for the first time ever will be held in 'the most exciting city in the world' Las Vegas, NV at the new mega-resort, Wynn Las Vegas. The show will be 20% larger to accommodate the projected record number of attendees and will have an increased exhibition space exceeding 500,000 square feet, the largest in its history.

'We are very excited about having our conference for the first time in Las Vegas' said Jeff Cannata, President of the NKBA. 'Our attendees will experience what goes into the design of the kitchen and bath for the 21st century and beyond. We will present the kitchen and bathroom as the most important and creative rooms in the home.'

Keynotes
Kicking off K/BIS '05 will be an opening keynote by the resort's mastermind, Steve Wynn, also known as Las Vegas' best-known developer who also helped build The Mirage, Treasure Island, and Bellagio resorts. Wynn will discuss his newest venture, Wynn Las Vegas, and how he was instrumental in shaping Vegas into a modern resort and entertainment destination.

Expo Floor
At the expo, hundreds of exhibitors will display the latest products, creative ideas, and unique services inspiring attendees with exquisite designs and business solutions. There will be examples of upcoming products, appliances, electronics, lighting, countertops, flooring, bathtubs, spas, vanities, plumbing, machinery and more.

One of the highlights of the show and new this year will be the NextGen Design Idea Home, presented by NKBA, which will showcase the most current trends in whole house design with a special focus in the kitchen and bath areas. It will feature a contemporary floor plan with the kitchen as the centre of activity showcasing advanced electronics, products and design ideas to enhance any kitchen and bathroom.

Another attraction will be this year's Design Idea Center, NKBA's annual signature event of design and function. This year, the editors of Woman's Day Specials and Canac kitchen designers will present 'Ultimate Amenities' inspired by Sarah Ferguson, Duchess of York and spokeswoman for Weight Watchers, and Food Network chefs Rachael Ray and Tyler Florence. They have created the plans for two kitchens and a luxury bathroom all contained within a single flow-through space.

Educational Courses
New additions to this year's educational courses will provide K/BIS attendees with more flexibility and options. In addition to four full-day courses, four new half-day courses have been added to offer attendees an invaluable opportunity to gain insight, learn practical solutions and enhance their professional development. Some new courses include:
Natural Stone Countertops
Lighting for Residential Interiors
Universal Design Strategies
20th Century Design and Beyond

CKBER Golf Tournament
The Center for Kitchen and Bath Education and Research (CKBER) will host its inaugural annual fundraiser at K/BIS with golf tournaments at the Stallion Mountain and Royal Links Golf Resorts to support the continued development of qualified professionals in the kitchen and bath industry. All funds will help promote the kitchen and bathroom industry as a dynamic career opportunity, encourage the development of innovative and responsible consumer solutions and ensure quality trained professionals can continue their efforts in the kitchen and bathroom industry.

Board of Directors'Gala
The NKBA will honour the 'Finest Professional in the Kitchen and Bath Industry' and thank volunteers, members and friends for their continued support and commitment at their annual Board of Directors' Gala. This year for the first time ever, winners of NKBA's annual Design Competition will be announced live, and the induction of the newest members of the Kitchen and Bath Industry Hall of Fame will occur.

Whether you‚re a professional in the industry, a student interesting in becoming one, or a member of the press, there are hundreds of reasons why you should attend K/BIS. For more information or to register, please visit http://www.kbis.com

The NKBA Announces 2005 Student Design Competition

The National Kitchen & Bath Association's (NKBA) Endorsed Programs department recently announced its schedule of competitions for students to enter in 2005 and 2006.

2005 Student Design Scholarship
Again in 2005, the National Kitchen & Bath Association (NKBA) presents the 2005 Student Designer Scholarship sponsored by Kitchen & Bath Design News magazine (KBDN). This contest is only open to NKBA Student Members that attend an NKBA Supported/Endorsed Program.

Winners will receive scholarships and expense paid trips to the 2005 Kitchen & Bath Industry Show (K/BIS®) in Las Vegas, Nevada on May 10-12, 2005. Eliot Sefrin, publisher of KBDN magazine, will present the winners with their cash prize at the NKBA Student Member Event at K/BIS®.The deadline for submission is March 25th, 2005.

2006 NKBA Student Design Competition
The 2006 NKBA Student Design Competition is open to all NKBA Student Members. New this year, thanks to sponsorship from American Woodmark Corporation and Sub-Zero Freezer Company, Inc., students have a choice to compete in the kitchen competition, bath competition or both.

Students are asked to help Brad and Penelope Ivy redesign their 40's kitchen and/or bath. Of course this will not be easy since Brad wants an ultra contemporary kitchen and Penelope wants a warm inviting traditional kitchen. The bathroom causes controversy when Brad expresses his desire for a residential urinal.

In addition to following the NKBA 31 Kitchen and 27 Bathroom Planning Guidelines, the submission of a design statement and storyboard, students are required to submit a floor plan, construction plan, mechanical plan, and elevations following NKBA Graphics and Presentation Standards. Deadline for submission is November 30th, 2005.

For more information, please visit http://www.nkba.org or contact Sherylin Doyle, NKBA Endorsed Programs Manager at mailto:sdoyle@nkba.org.

Homag Group Registers Above-Average Benefit from Market Recovery

The Homag Group AG benefited from the worldwide woodworking machine market recovery during 2004 with a marked increase in sales and a gain in market share. Preliminary figures indicate an increase in turnover for the manufacturer of machines and plants for the woodworking industry by 13 per cent to 681 million Euro (over 601 million Euro in the previous year).

The value of orders received was up 22 per cent to 589 million Euro (485 million Euro in 2003). Following two difficult years marked by stagnating sales, this development heralds the revival of investment activity in the industry. The Homag Group AG enters the current financial year with what the Management Board has pronounced as a ‘satisfactory’ stock of orders in hand, amounting to 175 million Euro (as against 152 Euro in the previous year).

Spokesman for the Board Klaus Bukenberger anticipates ‘further stabilisation of the market’ in 2005: ‘However, growth rates are likely to slow up compared to 2004, which reflected the special impact of an easing investment situation after the blockage of recent years’. Bukenberger is anticipating a sales increase ‘in the medium single-figure percentage range’ for the Homag Group AG in 2005, which will reflect a further expansion of the company’s market leadership.

Despite a marked increase in the operating result of the global player in 2004, the Board is still ‘not satisfied’ with the rate of return generated for the period. It lays the blame at the door of intensive international competitive pressure exerting a negative impact on profit margins, and the current high price of raw materials. In the globally oriented woodworking machine market, European manufacturers are also suffering the effects of a strengthened Euro, which is lending national suppliers in North America and Asia a tangible pricing advantage. The Homag Group AG aims to head off these developments during the current financial year by implementing a number of optimisation and cost-cutting measures to enhance the competitive muscle of its German locations and further improve its 2005 result.

The Homag Group AG benefits from a broad international base comprising 45 of its own sales and service branches as well as sales partners in over 60 countries. In China alone, the world market leader is active with eight branches. Of the 5,141 employees on the company’s payroll on December 31st, 2004 (previous year 5,114), 4,287 are currently employed in Germany and 854 abroad.

Comparing the individual markets, the company registered a gratifying development of its own home market of Germany during 2004. Following the sluggish performance of the domestic market over recent years, this was an area with a lot of ground to be recovered. The other major Western European markets Italy, France, Spain and the UK remained buoyant, while particularly high growth was registered in the Eastern European markets, in particular Poland and the CIS states. The Homag Group AG also succeeded in making good headway in North America, while still suffering the effects of the strong Euro. South America showed signs of good recovery, while developments in the Asian market differed greatly. Individual countries, in particular China, registered marked growth rates, while the tendency was rather on the stagnant side for the Southeast Asian region.

Web: http://www.homag.de

The Board of Electrolux has Decided on De-Listing from NASDAQ

The Board of Directors of AB Electrolux has decided to delist the Group's American Depository Receipts (ADRs) from the NASDAQ Stock Market in the US. The ADR programme will be maintained, and trading in these receipts will be transferred to the US over-the-counter market.

The majority of the trading in Electrolux shares is on the Stockholm Stock Exchange. Trading volume in ADRs is low and does not justify a listing. In addition, capital markets are becoming increasingly global which reduces the need for listings on multiple exchanges.

The Group will continue to submit an annual report on Form 20-F and quarterly reports on Form 6-K to the American Securities and Exchange Commission (SEC).
Electrolux ADRs have been listed on NASDAQ since 1987. One ADR corresponds to two B-shares. In addition to the Stockholm Stock Exchange, Electrolux shares are listed on the London Stock Exchange.

Sanitec International S.A. Commences Offer to Purchase

Sanitec International S.A. (the 'Company') announces the commencement of a cash tender offer and solicitation of related consents (together the 'Offer') relating to all of the Company's outstanding 260,000,000 9% Senior Notes due 2012 (the 'Notes'). If the Offer is consummated, the total consideration (the 'Total Consideration') to be paid for each validly tendered Note and properly delivered consent will be an amount based on a fixed spread of 50 basis points over the 6.875% German Bund due 12th May 2005. The Total Consideration includes a consent payment equal to 25 per 1,000 principal amount of Notes purchased (the 'Consent Payment') for consents delivered prior to the Consent Expiration Date (as defined below).

The Offer is expected to expire, unless extended or terminated by the Company, at 5:00 p.m. UK time, Friday, 18th March 2005.

In conjunction with the Offer, the Company is soliciting consents to certain proposed amendments (the 'Consents') to the indenture governing the Notes (the 'Indenture') that would amend or eliminate substantially all of the restrictive covenants, certain events of default and related provisions contained in the Indenture and terminate a pledge agreement dated 7th May 2002 (the 'Pledge Agreement'), the effect of which is to terminate pledges in favour of the Trustee given by the Company in respect of its holding of shares in Sanitec Oy and certain loans made by the Company to Sanitec Oy. Subject to receipt of requisite consents from the Noteholders and the satisfaction of other conditions, the Company and the trustee under the Indenture (the 'Trustee') intend to execute a supplemental indenture (the 'Supplemental Indenture') providing for the proposed amendments promptly after the expiration date of the Offer.
Noteholders may not tender their Notes without consenting to the proposed amendments. The Offer is being made solely pursuant to an Offer to Purchase and Consent Solicitation Statement dated 17th February 2005 (the 'Offer Document'), which sets out in full and governs the terms and conditions of the Offer.

The Total Consideration, which includes the Consent Payment, shall only be paid for Notes tendered and the related Consents received on or prior to 5:00 p.m. UK time, on Friday, 4th March 2005, unless extended by the Company (such time and dates as it may be extended, the 'Consent Expiration Date'). Noteholders who tender after the Consent Expiration Date, but before the expiration of the Offer, will be entitled to receive the Total Consideration less the Consent Payment if the Offer is consummated.

Copies of the Offer Document, as well as additional information about the terms of the Offer can be obtained by contacting:

Dealer Managers and Solicitation Agents:
UBS Limited: Liability Management Group at +44 20 7568 3118
UBS Securities LLC: Liability Management Group at + 1 203 719 5479
The Royal Bank of Scotland plc at +44 20 7085 6743
Greenwich Capital Markets, Inc. at +1 203 618 6148

Tender Agents:
The Bank of New York, London Branch or The Bank of New York (Luxembourg) S.A. at +44 20 7964 4835.

The Offer Document contains important information, which should be read carefully before any decision is made with respect to the Offer.

This announcement does not constitute a recommendation regarding the Offer or an offer to purchase the Notes. Holders of the Notes should seek advice from an independent financial adviser as to the suitability of the Offer for the individual concerned.

The contents of this notice are the sole responsibility of Sanitec International S.A.

Web: http://www.sanitec.com