On
12th March leading kitchen component distributor, PWS acquired UK Marble,
an independent stone fabricator and supplier based in Hereford. PWS will
utilise the acquisition to secure a stronger foothold in the granite market,
allowing for greater sales penetration in the South of England and representing
a significant step towards achieving their ideal business mix in the kitchen
market.
PWS
have identified strong growth in the granite market so the acquisition
is not only timed to perfection for maximising sales potential, but is
also the right strategic fit with their target customer base. The move
is an entirely logical progression for PWS' already successful and respected
worksurfaces division, which is now at a point where a granite fabrication
facility in the South of England is the answer for achieving best in class
service and product package. The acquisition co-incides with the appointment
of David Smillie as PWS's Worksurfaces Sales Manager and the expansion
of the business' template and fit team.
Pivotal to PWS' continual success and sustained growth over the last 30
years has been their unfaltering commitment to investment in research,
product innovation, staff and facilities, which has earned them a reputation
as one of the most successful and design-led suppliers in today's kitchen
market. A similar program of capital investment and development at UK
Marble's Hereford site is planned to respond to anticipated sales growth.
Comments John Lennon, Sales & Marketing Director at PWS, ' We have
been researching this business opportunity for some time and in UK Marble
we have identified an excellent strategic fit, an ideal match, so coming
together was the logical and natural thing to do. Worksurfaces have been
a crucial part of our core business for 9 years, and we already have hands-on
experience, knowledge and expertise from our own timber worktop manufacturing.
The acquisition comes on the back of a record sales year at PWS so we
are firing on all cylinders and really looking forward to further strengthening
our granite position. UK Marble is established as a successful stone manufacturer
and like-minded to PWS they cite commitment to quality, product development
and service as their winning formula.
On the acquisition Lennon continues, 'This move further cements our commitment
to the worktop market. We are excited by this new venture and by combining
the talent and expertise at PWS and UK Marble we expect to be a strong
player in the market, confident that our granite business will grow significantly
over the next few years. Under PWS' helm UK Marble will have a solid base
on which to reach an enviable customer base.'
View the PWS worksurfaces collection at www.worksurfacesbypws.co.uk
or UK Marble's stone range at www.ukmarble.co.uk,
alternatively call the PWS worksurfaces team on 01325 505522.
Candy
and Alladino Create Argentine Subsidiary
Candy Group and Alladio (José M. Alladio y Hijos S.A), the largest
washing machine manufacturer in Latin America, have signed an agreement
to produce Candy topload washing machines in the Luque factory (Córdoba
province) in Argentina.
The agreement will give Alladio access to Candy Group’s technological
and product know-how to enable a manufacturing capacity of 100,000 units
per year. The first shipment/batch of Candy topload washing machines range
is expected to leave Luque in May 2007.
Candy Group also announces today the official opening of its Argentinean
commercial subsidiary in Buenos Aires, the first in Latin America, directed
by Claudio Hairabedian. The group has had a presence in Argentina through
distributors since 1986. The new subsidiary will consolidate this function,
and aims to position the Candy brand as the leader in the toploader segment.
The Argentinean washing machine market increased by 14.7% in 2006 (approx
654,000 units), and is anticipated to increase by 300% over the next few
years.
'The agreement confirms our strategy of achieving a balanced commercial
and industrial presence in the faster-growing markets. After Russia, China,
Turkey (countries in which we have our own production facilities), we
add Argentina to the list through a partnership with the biggest and best
manufacturer in Latin America', says Aldo Fumagalli, chairman, Candy Group.
'The machines manufactured here in Argentina will also be exported to
the rest of Latin America. The Luque plant takes advantage of our know-how
in product design as well as manufacturing and production processes. It
will shortly become the 'twin' of our industrial site in Bergara (Basque
Country, Spain), where we currently produce our range of Candy toploaders
for Europe.”
Marcos Alladio comments, 'The industrial collaboration with Candy Group
is developing with full mutual satisfaction - we share the same approach,
we work together well and are in daily contact. Both Alladio and Candy
are experts in washing machines and, from this common ground, a friendly
and effective relationship among Argentina, Spain and Italy was formed.
The presence of this factory alongside the European one will allow us
to offer a range specifically to meet the needs of the Argentinean market.'
Marco Corno, general manager Overseas Business, Candy Group, who led the
contract discussions, says, 'Alladio is a valuable partner for Candy Group.
This deal means we can now manufacture locally and overcome delivery difficulties,
which entirely depended on import. Candy Group will soon be able to offer
a complete range of innovative products to Latin American consumers.'
Bosch
to Focus on Speed for 2007
This
year, the focus for Bosch is on speed, efficiency and performance. As
life speeds up, so is the requirement for washing machines and dishwashers
to turn things round more quickly.
It's not just performance that counts though, so Bosch have a choice of
colours - white, silver and now high gloss black, providing a range of
looks to suit every kitchen.
Bosch Cooling is looking good too, with a range of top quality appliances
and storage solutions to keep food fresh for as long as possible. A new
AirFresh filter reduces smells and odour transfer in the fridge.
DISHWASHERS
It's a misconception that dishwashers use more electricity and water than
washing up by hand. In fact, a dishwasher can save you up to 50 litres
of water per day. Bosch Logixx dishwashers can use as little as 9 litres
of water for a full dishwasher load - that's a small washing up bowl full
of water for an entire load. Varioflex Plus baskets mean you can fit in
as much washing up as possible and the auto programme takes the guess
work out of choosing the best programme, providing optimum results.
Exxcel and Logixx dishwashers are now up to 50% faster than before, meaning
that you can turn around your dirty dishes quicker than ever without compromising
on performance.
HOME LAUNDRY
There's something for everyone in our home laundry range with 6kg, 7kg,
8kg and 10kg washing machines now available.
The outsize 10kg machine is perfect for a utility room and now comes with
a matching tumble dryer. The huge capacity saves on multiple washes and
easily handles an entire football kit or a kingsize duvet.
The new Logixx 8 WAS 32466 packs in 8 kg of washing into a standard sized
machine so it's perfect for anyone who wants extra capacity but doesn't
have extra space. The Express Wash will turn around washing in double
quick time and the Super Quick Wash programme will have your washing ready
in 15 minutes. All other requirements are covered with Sensitive, Handwash,
Dark and Sportswear Programmes.
COOLING
Bosch Logixx fridge-freezers look even more stylish than before with the
new high door design and smart external electronic controls. On the inside,
state-of-the-art technology and storage solutions ensure you get the best
from your appliance. Multi-airflow cooling ensures an even temperature
throughout, with no hotspots and chiller compartments help keep food fresher
for longer.
The KGN39A00GB fridge freezer is 200cm, so offers great capacity, with
a wine rack, can dispenser and sleek high door design, available in silver
or white.
In the Exxcel range, the KGM34X61GB is also 2 metres tall and features
a smart new chrome logo as well as new door trays and electronic freezer
control.
www.boschappliances.co.uk.
Designers
Urged To Enter KBSA Awards
The
KBSA is urging all designers to note the closing date of 1st May for their
2007 Design Innovation Awards entries.
'We know from past experience that when the forms are distributed many
designers put them to one side thinking that they have plenty of time
to enter, only to realise too late that they have left it until the last
minute,' says KBSA Sales and Marketing Director Ruth Ward.
'We have had a tremendous amount of interest in this year's awards so
far and are hoping for a significant improvement in the number of entries
on last year. We have made the process of submitting an entry as easy
as possible and the information required is not detailed or complex, so
nobody has to spend a lot time on the entry process."
Award categories include:
* Kitchen Design Innovation Award
* New Kitchen Designer Award
* Bathroom Design Innovation Award
* Bedroom Design Innovation Award
This year's award ceremony will take place at the five star De Vere Grand,
Brighton on 21st June and booking forms for tables are now also available
from the KBSA.
'Brighton has proved to be a popular choice for this year's event,' adds
Lucinda. 'We are finding that many guest are attracted by the location
and the quality of the hotel; they are choosing to spend extra time in
Brighton after the event and enjoy a weekend away.
The AGM begins at 3.30pm and is scheduled to close by 5pm. The KBSA Design
Innovation Awards Champagne Reception and presentation dinner will begin
at 7.00pm.
Details, entry forms and booking forms are available from the KBSA or
via the website www.kbsa.co.uk
Wolseley's
Interim Results Show Good UK Performance
Wolseley,
the world's largest specialist trade distributor of plumbing and heating
products to professional contractors and a leading supplier of building
materials and services, today announces its interim figures.
Chip Hornsby, Wolseley plc Group Chief Executive said:
'The decline in US housing starts has clearly had an impact on our results
for the first half, but we have taken swift and decisive action to reduce
our cost base and to position the Group to benefit from improving markets.
Meanwhile, we are very encouraged with the progress being made in Europe
including the acquisitions which have taken us into 8 new countries. We
will continue to pursue our double-digit growth targets through a combination
of organic and acquisitive growth with a renewed focus on margin, cash
flow and working capital improvement.'
Overview
* Market outperformance in the Group's principal markets
* Strong revenue growth but profits held back by US residential market,
commodity price deflation and currency translation
* One off costs of £11 million in the first half giving rise to
benefits of £30 million in the second half. Further rationalisation
costs of £6 million expected in the UK in the second half
* First half operating cash flow up significantly (73%) reflecting increased
focus on cash flow to finance future growth
* Trading margin target of 7% within 4 years
* Continuation of double digit growth target
After taking account of currency translation, Group revenue increased
by 16.9% from £6,734 million to £7,870 million. Trading profit
rose by 1.3% from £385 million to £390 million. The Group's
trading margin fell from 5.7% to 5.0% primarily due to the lower margins
in Stock and Wolseley UK, commodity price gains last year which were not
repeated and additional investments in the
business to position the Group for further growth. After deducting amortisation
of acquired intangibles of £45 million (2006: £14 million),
operating profit declined by 7.0% from £371 million to £345
million.
Europe
Most of the European operations achieved good revenue and profit improvements
in markets which showed little growth in the first half. The results in
Europe also benefited from acquisitions which expanded the geographic
diversity of the Group.
Reported revenue for this division increased by 44.5% from £2,425
million to £3,503 million, of which 10.1% was from organic growth.
Recent acquisitions accounted for £857 million (35.3%) of revenue
growth, including DT Group in the Nordic region in September 2006. Trading
profit, after the allocation of European central costs of £5 million
(2006: £5 million), increased 33% from £135 million to £180
million.
The overall divisional trading margin, after the allocation of central
costs, declined from 5.6% to 5.1% of revenue, primarily due to the lower
trading margins in Wolseley UK and Italy.
UK and Ireland
Wolseley UK grew strongly in an improving market. The fundamentals of
the UK economy remained positive, with good economic growth and relatively
low unemployment. The Irish economy continued to be positive.
Against this background, Wolseley UK, which includes Ireland, recorded
a 23.1% increase in revenue to £1,554 million (2006: £1,262
million). Organic growth of 11.0% significantly outperformed the market
generally, which is estimated to have risen by 2%.
Wolseley UK's trading profit increased by 3.2% in the first half compared
to the equivalent period in the prior year. Price competition in the core
Plumb and Build brands continued, but the effect was more than offset
at the gross margin level by the benefits from the other brands including
the recent acquisitions.
However, the trading margin fell from 7.1% to 6.0%. This was as a result
of the continuing investment in the business to improve supply chain in
terms of DC space, the initial dilutive impact of opening new branches,
integration costs of the prior year's record acquisitions and increasing
the management resource, including a doubling of the graduate programme.
Following the closure of a number of regional offices, certain functions
have been successfully centralised into Wolseley UK's new head office
in Leamington Spa, with support services for the core brands fully integrated.
One off costs in the first half were approximately £5m including
those related to the step up in the number of branch openings. Further
rationalisation costs of approximately £6 million are anticipated
in the second half relating to refinement of the branch network and planned
headcount reduction following the centralisation of head offices. The
emphasis in the second half will be more on margin improvement.
The new national DC in Leamington Spa began operations in autumn 2006
and the regional DC, in the North West is now under construction. These
investments and the current initiatives to centralise control of transport
and branch inventory management, should enhance customer service and support
continued growth in the business. The central branch replenishment programme
has been fully rolled out in Plumb Center and Parts Center and has improved
inventory turn and stock availability in the branches. This will be introduced
to other brands.
During the first six months, 68 net new locations were added in the UK
and Ireland taking the total number of branches for Wolseley UK to 1,926
(31 July 2006: 1,858). More than 30 new Bathstore branches were opened
as well as additional investment in its office and distribution space
and this opening programme will continue in the second half. The electrical
distribution businesses, AC Electrical and William Wilson, were brought
together as Electric Center and a further 11 new branches were opened.
The integration of Hire Center with Brandon Hire was also completed, with
a further 2 branches added.
Outlook
In the UK, the fundamentals of the UK economy are expected to remain positive
and the gradual improvement in the RMI market is expected to be maintained,
although it is still too early to assess the full impact that recent interest
rate increases may have on consumer and housing related expenditure. Against
this background, the UK business is expected to show improved profit growth
and underlying trading margin in the second half compared to the corresponding
period in the prior financial year as the business begins to obtain the
benefits from previous investment in central management systems, acquisition
integration
and the branch network.
Fisher
& Paykel Opens New Facilities
Fisher
& Paykel Appliances has moved to new headquarters, showroom and logistics
centre in Milton Keynes and invites all retailers to the company’s
open days from Tuesday 17th April till Friday 20th April.
The new facilities will boost a showroom with a selection of current and
new products and will be open to both the public and retailers for training
sessions.
The open days are:
* Tuesday 17th April from 10am till 2pm
* Wednesday 18th April from 10am till 2pm
* Thursday 19th April from 10am till 8pm
* Friday 20th April from 10am till 5pm
Retailers are invited to contact their Area Sales Manager or call 0845
600 1934 for their preferred invitation date.
For further information contact the Fisher & Paykel Customer Care
Centre on 0845 600 1934 or visit http://www.fisherpaykel.co.uk.