Welcome to THE K&BZINE News 24th March 2006

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Electrolux Use London's Ice Bar to launch Raft of New Hot and Cold Products

Last week Electrolux hired London's trendy new Ice Bar to launch a raft of new cooking and refrigeration products. Two of the stars of the show were the Screenfridge (which features wireless broadband internet, TV, email, phone, radio and an MP3 player), and the new EGL4400X, described as the hottest BBQ on the market.

Modern-day kitchens have fast become an area where children do their homework at the table while dinner is being prepared; parents read the morning paper and listen to the radio; families watch their favorite shows, check their e-mail and talk on the phone, or also entertain guests. In essence kitchens have become the modern hub of the home, increasing in size and complexity over the years. Supporting these activities are a vast number of electronic gadgets like TV's, laptops and radios (all accompanied by unsightly wires) to other organizational items like calendars, 'to do' lists, 'post it' notes and a plethora of other items - all taking up precious space which could be used for food preparation or entertaining.

Electrolux, the world's largest producer of powered appliances for kitchen, cleaning and outdoor introduces a simple and elegant solution: A refrigerator designed for 21st Century use. A product with a dual function - cooling your food - and helping keep the kitchen orderly and organized, while also helping family and friends keep in touch. And all this presented in the form of an iconic cooling product meeting the growing demand for a style statement kitchen.

Screenfridge is connected to broadband and TV via a wireless connection and features a 15-inch touch screen and pop-up keyboard. Offering a calendar, Internet connection, email, phone, radio and an MP3 player, among many other functions, Electrolux has developed the Screenfridge as a central hub, equipping it with a unique messaging system and highly advanced calendar that keeps family members updated on each other's lives.

 


The new Electrolux EGL4400X, meanwhile, is the hottest BBQ Grill on the market - and second to none for build quality, professional styling and outstanding features. Finished in robust 'marine grade' stainless steel for maximum durability and rust resistance, this grill is packed with features which set it apart from the rest - from its solid stainless steel cooking grids (superior to cast iron used in other grills) to its double layered cooker hood.Its professional looks and top quality build are matched by an equally impressive array of innovative cooking features that will transform your BBQ's this summer!

Multiple burners and in-built temperature gauge on the vast cooking area ensure perfect results whatever the food type: delicate fish can be grilled - and steaks seared all at the same time!

A practical side burner - ideal for saucepans - means that you can cook your entire meal outside, and a warming surface and two warming drawers makes catering for many so much easier.

On the practical side, dual stainless steel drip trays ensure all food residue is easy to collect and remove and two storage drawers provide space for beverages and cooking tools.

More on these and other new appliances launched at the Fire & Ice spectacular will be covered in the next few weeks.


LSY Group Acquires GE Appliances' DSO in Europe

LSY Group today announced it has completed the acquisition of the direct sales operation of GE Appliances in Europe.

As sole distributor, LSY Group has distribution rights in the following countries; UK & Ireland, Belgium, Luxembourg, France, Spain and Portugal. Since 1985, LSY Group has been a leading distributor of GE Appliances and in 1995 LSY Group was appointed by GE as sole distributor for baggage trade and contract sales for the US and Canada. LSY's main focus is to consistently search for innovative growth opportunities. LSY believes that its latest acquisition will continue to strengthen and grow the GE brand for the future.

'The sale of the distribution operation was a strategic move to drive growth and profitability,' explained the Managing Director, GE Appliances EMEA Peter van den Broek. 'With LSY focusing on distribution, GE can commit more resources to the development and marketing of new products which will drive growth for both GE and LSY.'

Lior Yaron, Chief Executive of LSY commented, 'We are very pleased to become the sole distributor for GE appliances products in the UK & Ireland, Belgium, Luxembourg, France, Spain and Portugal. LSY Group is a well established distributor of GE Appliances and with its wealth of experience in the appliance field in the US domestic market and worldwide, I feel extremely confident we can continue to build upon an already successful distribution partnership'.

GE Appliances
0800 731 8657
http://www.geappliances.co.uk

Graham Hayden Retires From KBSA

KBSA Director Graham Hayden has announced his retirement from the Association after 10 years as Chief Executive and more recently Managing Director. He will officially step down at the KBSA AGM on 6th July.

Graham was also made the first ever honorary member in recognition of his service to the association in 2005.

Over the 10 year period, membership of the KBSA has more than doubled and many initiatives have been introduced to give the independent retail members major benefits including the acclaimed KBSA website, 'The Specialist' magazine, exclusive finance packages and a tailored consumer complaints advice process.

Whilst dealing with the Part P regulations and the establishment of the first ever National Training Group for the KBB industry have been major initiatives that Graham has undertaken over the last 2 years, the most important product for KBSA members is the new 4 way insurance cover that has now been introduced to ensure that KBSA members remain as 'best in class' and ready for the KBSA to take a scheme operator status for the newly launched government TrustMark scheme.

Graham commented, 'I have really enjoyed my 10 years with the association and I leave in the knowledge that we are well established as the only KBB trade association that can assure consumers that its members are fully competent and fully vetted thus ensuring complete peace of mind. The new 4 way insurance product will further emphasise this and I feel that now is the time for me to move on and I will be delighted to continue as a very active and supportive member of the KBSA.'

Graham will continue to support the KBSA over the coming months in an advisory capacity and the Board of the KBSA extend their grateful thanks and very best wishes for his future work.

Chairman of the KBSA Tony Nicholas said, 'Graham has made an immense contribution to the KBSA and the industry.'

Following a recently completed strategic review, recruitment of a successor is already underway.

Visit http://www.kbsa.co.uk or call 01905 621 787

Sunday Mirror Votes Luxor Top Tap

The distinctive curves of Bristan's Luxor basin mixer has earned it special recognition from a leading national newspaper, which has voted it one of the UK's top 10 taps.

In a worldwide search for great value taps that offer fantastic style, the Sunday Mirror, which has a readership of more than 4.6m, recently chose Bristan's stylish Luxor model as one of the top 10 best taps available on the market today.

With its distinctive handle and innovative slanting design, the Luxor basin mixer is currently one of Bristan's best selling models and features stylish good looks alongside high quality, durable construction, and is available at an equally attractive price.

The Luxor range also includes bath taps, bath shower mixers and bidet mixers for a coordinating look.

The Luxor basin mixer costs £114 and is available in chrome.

For further information contact 0870 4425556 or visit http://www.bristan.com


Two Beautiful for Words: Aqualux Double Award

Aqualux is celebrating double success by scooping two of the most prestigious awards at the House Beautiful Awards 2006. At a star-studded event held at Madame Tussauds in London, Aqualux walked away with the Gold award in the Best Bathroom Product category and the Silver award for Best Consumer Advertising Campaign.

The UK's leading manufacturer of bath screens and shower enclosures fought off competition from hundreds of entrants to win Best Bathroom Product for its luxurious Walk-In with Wet Room option which has become Aqualux's best seller since its launch in April 2005.

And the West Midlands based company didn't stop there, working with its marketing and communications agency Reeves Green, Aqualux also won the Silver award for its 'Exhilarating Surroundings' advertising campaign.

It is the first time Aqualux has run consumer advertising, which covers a range of home interest magazines.

James Cadman, managing director was delighted with the awards: 'To be short listed and then win such a highly prestigious award really confirms our position as a leading manufacturer of stylish and contemporary products. It's excellent to be recognised by such a well-respected industry award.'

Commenting on the award for best advertising campaign, Sandra Hyde marketing manager said: 'We wanted to make sure we got away from the traditional advertising used in the bathroom market which can often be a bit predictable.


L-R: Neil Harrison, Aqualux's technical services manager, James Cadman, Aqualux's managing director, Claire Blincow, PR account manager at Reeves Green and Director of Reeves Green, Graham Green.

It was the first time we'd run a consumer advertising campaign so we wanted to make sure we established strong branding and I think 'Exhilarating Surroundings' gives exactly the right message about Aqualux and its products.'

The Walk-In comes in three sizes – 1400mm x 800mm, 1400mm x 900mm and 1700mm x 900mm with a height of 1900mm. All are supplied with a tray and integral hardwood, water-resistant foot board.

RRP £477 (ex VAT) 1400mm x 800mm Walk-In shower panel, side panel and Wet Room conversion kit.

For further information please call: 0870 241 6131 or visit www.aqualux.co.uk


House Beautiful Consumer Magazine Awards Titanium With Silver

At the House Beautiful magazine awards ceremony in London on March 9th, 2006, Whirlpool's Titanium cooking product range was named as winner of the silver prize in the category 'Appliance Innovation of the Year'.

House Beautiful is a leading UK home improvement journal, with a readership of 500,000, (70% ABC1). Over 300 people from the home improvement industry attended the awards ceremony, including representatives of top retailers, the design world and television.

Ray Isted, brand marketing manager, Whirlpool UK, said: 'This is really great news for the Whirlpool brand in the UK, as we had some strong competition from other brands. Readers of House Beautiful are exactly within our target group, so news of this award will reach over half a million potential customers with an important message about Whirlpools commitment to innovation'.

Titanium is the perfect material for the modern kitchen, robust, durable, and easy to clean with a wonderfully warm feel. The built-in cooking range consists of a 'premium' single oven, a 'premium' titanium full combination microwave oven, a 'premium' gas on glass hob and a tinted glass and titanium 'line' chimney hood.

http://www.whirlpool.co.uk

Kermi Invests in New Lines

Investment in new products is proving successful for Kermi last month saw further significant expansion of the Shower and Designer Radiator programmes.

New Shower Enclosure Products

The new Kermi Walk-In System was given extensive exposure to demonstrate the design flexibility this new programme offers.

The option to fit to the floor or on to the rim of a shower tray opens up vast opportunities for creative solutions in the very latest minimalist style.

Service is ex stock across the full range of sizes and fixing options.

The ever popular value for money Ibiza range has received major re-styling including new sliding quadrant models.

Reflecting the success of the Metallica silver and graphite finishes available on Kermi Towel Radiators all shower enclosure profiles are now being made available to special order in these finishes to allow total colour co-ordination.

New Designer Radiator Products

Kermi breaks into the expanding market for stainless steel towel radiators with the launch of the comprehensive and competitive Juno range.

Also on offer are two complete new ranges of flat and curved chrome towel radiators engineered for quality but aggressively priced.

These three new Towel Radiator ranges are backed by ‘off- the- shelf’ service.

Taking a bow at KBB were two new Designer Radiators Credo II and Credo Half. These new designs have a technical pedigree including fully integrated thermostatic valves for economy and ease of installation.

Email: cradcliff@kermi.co.uk


De Dietrich Appliances are Showcased at New Biasco Showroom in Essex

De Dietrich, the premium appliance brand, is one of many top named appliances being showcased at the new upmarket Biasco Showroom, which officially opened on Wednesday 15th March 2006.

The showroom, which is on the original factory site of UK kitchen manufacturer, Wrighton Kitchens, in Nazeing, Essex, is a valuable addition to the Biasco business model where high end appliances can be featured in a 'real' kitchen environment. The large and varied showroom is built in association with Cameo Kitchens and Agency UK.

The De Dietrich models featured are the top of the range DOP490X ICS single oven, DTI304J frameless induction hob and DVF330J integrated dishwasher.


Oliver Wicksteed , managing director of Biasco, with the DTI304J Induction Hob from De Dietrich, which is available in the new Showroom

Oliver Wicksteed, managing director of Biasco says:
'We have spent a lot of time and thought creating this destination venue, where customers can see their new kitchens and appliances appearing in context. We chose a very contemporary look for the De Dietrich showcase; as the streamlined design of the appliances works well in a modern and up to date setting.'

We enjoy working with De Dietrich as the company provides excellent training, and when it comes to selling these products, we are not just selling the appliances, but the concepts behind them. Therefore, our team of expert sales professionals are well versed in explaining everything a customer would need to know about induction hobs, pyrolytic ovens, and more.

For this new showroom, we chose the best money can buy, as we are a quality company and wanted only quality products in a quality environment!'

De Dietrich Sales (Trade) 01256 308 067
Email: sales@fagorbrandt.com
Web: http://www.dedietrich.co.uk


Indesit 4th Quarter Results

Sales in the last quarter of 2005 reached €841m, up 3.5% on 4th quarter 2004. Growth in the 4th quarter enabled the Company to make up ground lost in the first half of the year, bringing sales in 2005 to €3,064m, down 1.2% on 2004. The improvement in the last quarter was due mainly to increased volumes and a small reduction in the price/mix.

Group net profits for 2005 amounted to €51m, down 49% due to both the decrease in sales and substantial increases in raw material prices. The net financial position was stable at €517m (€512m in 2004).

Indesit Company chairman Vittorio Merloni commented: ‘In a year characterised by high costs of raw materials, steel and oil and by a 12% downturn in the UK market, the Company reacted well and managed to close the year with a decent profit. Given our results, we are confident about the Company's future and ready to exploit any opportunities for growth that arise’.

CEO Marco Milani explained further: ‘These results confirm our forecasts. In 2005 we continued to re-organise and develop a result-oriented management structure fully integrated with the company. In 2006 we will continue to invest in research and development of products that are increasingly innovative and high quality. To guarantee optimum customer service and consolidate our leadership in Russia we opened the largest logistics pole in the white goods industry in Europe, in Lipetzk. And lastly, we brought under control our raw materials costs for 2006, thus limiting the impact of any new price rises’.

Results in 4th quarter 2005 (2004 figures in brackets)


The board of directors approved the following figures for 4th quarter 2005.

* The quarter closed with sales of €841.4m, up 3.5% on 4th quarter 2004.

* The gross operating margin (EBITDA) in 4th quarter 2005 was €76.5m (€96.0m), the ratio over sales being 9.1% (11.8%).

* The net operating margin (EBIT) in 4th quarter 2005 was €40.8m (€56.4m), the ratio over sales being 4.8% (6.9%).

* Group net profits amounted to €21.8m (€27.5m), down 20.5%.

Main provisional figures for 2005

* Sales at 31st December 2005 moved to €3,064.1m (€3,100.3m in 2004), down 1.2%.

* The gross operating margin was €263.4m (€348.4m), the ratio over sales being 8.6% (11.2%). The downturn in EBITDA in 2005 was due mainly, apart from the contraction in sales, to substantial increases in the prices of the main raw materials. This reduction was only partially offset by improved production efficiency achieved by cutting product/process costs, redistributing production and improved sourcing.

* The net operating margin in 2005 was €122.3m (€198.8m), with a ratio over sales of 4.0% (6.4%).

* The Group's net profits amounted to €50.7m (€100m).

* The net financial position was substantially stable at €517.4m (€512m).

Key events in 2005

* 2005 was characterised by a name change that gives Indesit Company a more effective identity at international level, as well as boosting the power of its best known brand.

* In 2005 the Company redefined its organisational structure to achieve stronger focus on innovation for new product development and on the entire quality process concerning products and the supply chain.

* On the distribution front, the Company benefited from the coming on line of the new logistics pole in Lipetzk (CIS), which was opened on 4th October and fully operational by the end of the year.

* Regarding products, Ariston's new washing machine, the Aqualtis, launched only four months ago, is enjoying great success with consumers in Italy. At the end of March it will be launched in Russia, the UK and the other main European markets as well. In the next few weeks, a new line of Scholtès appliances designed by David Lewis will be launched.

The board meeting scheduled for 23rd March will approve the consolidated financial statements and the draft financial statements of Indesit Company Spa and issue a notice calling a shareholders' meeting.

The 4th quarter report approved on 14th February is available to the public at Company headquarters and Borsa Italiana and is also on the Company's website, http://www.indesitcompany.com.


KBSA Pledges to Support KBB National Training Group

The KBSA pledged to investigate ways of providing funding for the Kitchen Bathroom Bedroom National Training Group (KBB NTG) at its last corporate committee meeting.

A presentation on the progress the KBB NTG has made and its plans for the future was given to the meeting by KBB NTG CEO Renee Mascari.

Renee explained that initial funding had been provided by the CITB but that further funds would be dependant on match funding being available from the industry.

‘We have carried out two very successful training courses; a 2 day course entitled 'Introduction to kitchen design' and a 5 day course entitled 'Kitchen Installation'. Thanks to the efforts of the KBSA both courses were sell-outs and additional courses were arranged to meet demand,’ said Renee.

'If we are to develop longer courses to up skill the current workforce and open up career paths for new entrants into the industry, then we need more funding.’

‘We have received tremendous support so far from our industry partners, many of these are KBSA members but if we are to meet our long-term objectives then we need to develop a sustainable plan for long term funding.’

Those present at the meeting were very supportive and a number of different ideas were discussed. It was agreed that Renee would prepare a business case so that these could be progressed via the KBSA board.

KBSA Corporate Chair, Barbara Leech thanked all those present for their positive contributions and re-iterated that the KBSA had been instrumental in establishing the KBB NTG. She said: ‘The KBB NTG would not have come into being if it were not for the hard work and commitment of many members of the KBSA. We are proud of our role in making this important initiative happen and are fully committed to providing ongoing financial support.’

Web: http://www.kbbntg.com


Fisher & Paykel - Trading and Earnings Update

For the ten months ended 31st January 2006, Fisher & Paykel Appliances Holdings Limited experienced strong growth in appliance unit sales as it regained market share locally and continued its market penetration in the North American markets.

The total New Zealand market for appliances declined but the Company continued to show gains in sales volumes reflecting its market share increase. The total market also decreased in Australia where the Company recently saw market share grow despite some initial decline in sales after prices were adjusted in May 2005.

In the USA the Company continued to trade strongly. Following the acquisition of Dynamic Cooking Systems (DCS) the distribution strategy for that brand was changed. Now that the USA headquarters has moved to Huntington Beach, California, DCS has been fully integrated into the USA operations and confidence in the brand has been restored. Strong growth in the Fisher & Paykel brand continues to be led by DishDrawer dishwashers.

Singapore's sales, with a more aggressive marketing approach and the addition of fhe Whirlpool brand, experienced strong growth.

In the Rest of World markets the Company's ability to compete was adversely affected by the high New Zealand dollar.

For the ten months ended 31st January 2006 total Appliances sales volumes, including those of DCS brand in the United States of America, were up by 7.1 per cent on the previous corresponding period.

While cost containment has been actively pursued, and gains made, commodity prices such as oil based plastics and insulating foams have remained unstable.

lnterest rates rises during the period increased the cost of funding the business. One-off costs of approximately $1 million were incurred for due diligence carried out on a discontinued acquisition opportunity.

The unexpectedly high value of the New Zealand dollar against the Australian dollar has impacted results. The New Zealand-Australian dollar exchange rate has traded above the $0.90 average range projected in the previous guidance.

The Company's second United States production facility in Clyde, Ohio is progressing well ahead of plan. The recruitment and training of staff are well advanced. The buildings have been extended and services installed. The washing machine plant in Australia was shut down during November 2005, and has since been recommissioned on site in Clyde. The first clothes washing machine to be built in the USA plant was made at the beginning of February, two months ahead of schedule.

Increased. revenues are expected from the North American markets and the new motor business.

Declining world steel prices, projected easing of exchange rates, cost down initiatives in component sourcing, reductions in freight and working capital costs are expected to combine to underpin the longer-term performance of the Company.

John Bongard Managing Director and CEO (pictured right)


Hoover Heats Up Kitchen Appliances with Launch of New Line

Hoover has revealed the new Signature collection of kitchen appliances. ‘In the same way that an individual's signature reflects their personality, the elegant and original design of the Signature collection embodies the uniqueness, strength of character and style of the Hoover brand,’ says the company.

Built for endurance, Signature is made from high grade steel, toughened glass, and durable finishes designed to resist wear and tear. ‘On the outside, each highly designed piece remains sleek, slim and sophisticated. With telescopic shelves, onscreen recipes, the Reflo Grill, and electronic LED display, the engineering behind the new range will undoubtedly become the new benchmark for intelligent cooking appliances.’

The Hoover Signature Collection includes ovens, double ovens, a combination microwave oven and grill, hobs, and a stainless steel and glass hood.

The range of Signature ovens includes multi-function fan and pyrolytic electric self cleaning ovens featuring pre-programmed recipes for easy time and temperature setting, LED electronic displays and, telescopic sliding shelves allow safe and easy access to hot dishes, while the Reflo Grill reflects heat downwards ensuring faster grilling.

To ensure the best results each and every time, the Signature Combination Microwave Oven and Grill has five power levels, three cooking combinations, and a 30-litre capacity.

The Signature hobs have been designed to include: 60-cm and 75-cm Hi-Light Hobs with touch sensitive digital controls, child safety lock, one extended cooking zone and one booster zone; the 75-cm 5 Burner Gas Hob, features cast iron pan supports, flame failure device, one extra large burner, two rapid burners and two medium burners; and a 60-cm Gas Hob, with single hand ignition, cast iron pan supports and burners in four ranges, one of which is a quadruple burner.

The Signature Décor Hood is a modern stainless steel hood with electronic LED, touch control buttons, 4-high speed extraction rate settings, and metal grease filters.

Heather England, Marketing Manager for the Hoover-Candy Built-in Division says: ‘We know our consumers want functionality, durability and beauty in their kitchenware and the new Signature line is our most advanced yet, combining highly elegant elegant design and engineering excellence. It's a sign of things to come in terms of product design and engineering and we're proud to be leading the field.’


Jacuzzi UK Launches New Vernon Tutbury® Brand

Jacuzzi UK has launched the new Vernon Tutbury brand in order to further strengthen and extend its product offering to developers and builders merchants.

The Fordham brand will be phased out over the next 12 months. The Vernon Tutbury Bathroom Collection will be supported with significant investment in new product development, literature and photography. New products for KBB included three new luxury baths, two new standard baths, the Fellini, Definition and Lateral suites, the Contemporary Furniture range and new brassware.

Fellini Bathroom Suite
Inspired by premium Italian styling the Vernon Tutbury Fellini Suite is a new introduction to the collection. The sweeping curve of the pan and bidet follows through to the basins, creating an organic flow to the suite.

Three basins with chrome overflow shroud are available within the range. Choose from two oval countertop basins; 800mm basin, 600mm basin available with semi pedestal or choose the 500mm circular basin. All basins are available with one tap hole only.

A wc pan with dual flush ceramic shroud cistern adds a striking feature to any bathroom. Further alternatives include a wall hung pan and floorstanding bidet. The Fellini suite is available in white only.

Definition Bathroom Suite
Clean lines and simple styling reflect the European influence on the Definition Suite. Each of the three basins features a circular inset design that follows the contours of the basin.

Flexibilty is key to the range. Choose from; 600mm basin, 560mm basin and 450mm basin with chrome overflow shrouds. All the basins are available with 1 or 2 tap holes. A full pedestal, cloakroom pedestal and semi pedestal are included within the range, along with an optional chrome bottle trap. A choice of close coupled pan and cistern with dual flush or a wall mounted pan complete the range.
The Definition suite is available in white only.

Lateral Bathroom Suite
The Lateral Suite features a deep rim on the basin and pedestal giving a substantial feel to this contemporary looking suite. The square shape of the basin and pan has been softened at the corners with a gentle curve following the latest in design trends.

The Vernon Tutbury Bathroom Collection, one of the Jacuzzi UK product brands, encompasses bathroom suites, baths, whirlpool baths, shower enclosures, trays, brassware and furniture and is available through selected Builders Merchants Nationwide.

For further details please contact 01274 654700 or visit http://www.jacuzziuk.com


GUS plc Third Quarter Trading Update

GUS plc, the retail and business services group, recently issued its regular update on trading. John Peace, Group Chief Executive of GUS, said: ‘The performance of both ARG and Experian in the third quarter reflects the benefits of our continued investment in initiatives to drive sustainable growth. Both Argos and Homebase outperformed their markets in the period, while Experian's broad range of products and services in many countries around the world continued to underpin its strong performance.’

Argos Retail Group

The non-food, non-clothing market remained weak during the period, although there was a boost to spending in the run-up to Christmas. Against this background, initiatives at Argos, including Argos Extra, and at Homebase, including mezzanines and Furniture Extra, have enabled both businesses again to outperform their markets.

Looking forward, ARG continues to plan on the assumption that like-for-like sales will remain in decline for the non-food, non-clothing market as a whole for much of 2006, with increased promotional activity continuing in the DIY market in particular. UK retailers are also facing inflationary pressures on costs, as previously outlined.

Argos

In the 14 weeks to 7th January 2006, total sales at Argos increased by 9%. New stores contributed all of this growth, aided by the 33 acquired Index stores. Argos had 650 stores at the period end, up from 583 a year ago.

Like-for-like sales at Argos were in line with last year, supported by the national roll-out of Argos Extra. The contribution to sales of toys and jewellery in the third quarter is about double that in the rest of the year; jewellery remained a difficult market. There was, however, a good performance from consumer electronics, with strong market demand in gift areas such as MP3 players and video games systems, as well as flat screen TVs and satellite navigation. Furniture and white goods also achieved good growth. Gross margin was in line with last year as supply chain gains countered an adverse product mix.

Customers continued to increase their use of Argos' multi-channel capabilities. Argos Direct, the delivery to home operation, grew sales by 14% in the period, representing 19% of sales. Within this, sales ordered on the Internet increased by 37% in the period, contributing 6% of sales. A further 13% of sales were reserved by phone or Internet for later collection in store (Check and Reserve), up 38% year-on-year.

The Spring/Summer 2006 catalogue, which was launched on 21st January, continues to give customers better value and increased range. It is the first Spring/Summer catalogue to offer customers in all stores the entire Extra range of 17,200 lines (up from 13,300 in the main catalogue a year ago).

Homebase

Sales at Homebase grew by 1% in the 14 weeks to 7th January 2006. New stores contributed 4% to sales growth. Homebase traded from 297 stores at the period end (of which 141 had mezzanines) compared to 287 a year ago (104 with mezzanines). Despite an increase in promotional activity compared to last year, like-for-like sales declined by 3% in the period. Gross margin was slightly down year-on-year.

In what remained a very difficult DIY market, total sales of core DIY and decorating products were lower than last year. Homebase's performance in the quarter was, however, helped by good growth in big ticket items driven by initiatives such as new mezzanines and the national roll-out of the Furniture Extra catalogue in Autumn 2005.

Disposals
The demerger of GUS' remaining stake in Burberry to its shareholders was completed on 13 December 2005. Benchmark profit before tax1 for GUS for the year to 31st March 2006 will include a contribution from Burberry up to the date of disposal.

On 28th October 2005, GUS announced an agreement to dispose of Wehkamp for about €390m to Industri Kapital, a private equity firm. Subsequently, the Dutch government announced a reduction in the maximum interest rate chargeable by commercial lenders to consumers from 21% to 16%. As this reduction will have a substantial effect on the future profitability of Wehkamp, the external funding made available to the purchaser was cut.

In the circumstances, GUS has agreed to a reduction in consideration to approximately €320m to reflect lower expected earnings. Completion of the transaction is expected later this month. The net book value of assets at the date of completion is expected to be approximately €335m. GUS now expects to realise a loss, after costs, of about €25m on the transaction which will be booked in the second half of the current financial year.


VASCO Wins red dot Design Award

2068 entries out of 41 countries; those were the entrants for the 2006 edition of the ‘red dot award: product design’. One of the participants was VASCO. The specialist in designer warmth sent in no less than 4 products.

The red dot design award is an initiative of the German Design Centre Nordrhein Westfalen. The contest receives international fame and each year high quality products are entered in one of the 11 categories. Also during the 51st edition this year, the competition was spectacular and the experts in the jury accepted the challenge to select the most innovative entries.

Out of the 4 registrered VASCO products, no less then 3 products were awarded with a red dot award: the designer radiators ARCHE and NIVA horizontal and also the new electrical regulation for bathroom radiators.

The ARCHE from VASCO has already been crowned several times before: Design Plus Award (2005), Designpreis Silver 2006, selected for Design in Belgium after 2000, selection Henry van de Velde price, category ‘Best Product’.

This international recognition of its product quality - by the competent members of the jury and in the company of a lot of well-established producers – is a valuable asset for VASCO.

The prize giving takes place during the annual gala of the red dot award on June 26th, 2006 in the Essen Opera House. The festivities start in the afternoon with the opening of the special exhibition ‘Design on stage - winners red dot award: product design 2006’, in the presence of about 1200 international guests from the world of design, art, industrial circles and politics.


Franke takes over Coffeetech AG

Franke has completed its takeover of the Swiss service retailer, Coffeetech AG located in Berikon/Zurich. Coffeetech had already been a service retailer of Franke Kaffeemaschinen AG since 1990. Coffeetech is particularly active in the greater Zurich area - the region with the biggest potential for growth in the sale of Franke coffee machines in Switzerland.

With the acquisition of this service organisation, Franke is continuing to pursue its aim of achieving world-wide representation in key markets with its own sales and service organisation. For Franke this take-over is a further step towards the goal of being able to offer optimal service in Switzerland. Coffeetech employs 9 workers and in 2004 achieved a tumover of 2.4 million Swiss francs.


Miele Distributes Henkel Household Cleaning Products in U.S.A.

No European home is complete, or completely clean, without the signature fresh scent and gentle effectiveness of Henkel's fabric care and household cleaning products. This absence has long been a source of homesickness for Europeans living in the United States as evidenced by the surprising number of Persil laundry detergent box sightings at international airports as expatriates stow it away in their carryon luggage. Fortunately, going to such lengths is no longer necessary, as a wide range of Henkel's cleaning products are exclusively imported and conveniently distributed in the United States by Miele, the German household appliance producer.

‘In particular, the reception Persil and Black Magic fabric care cleaning products have received is remarkable!’ said Paul McCormack, Senior Marketing Manager for Miele, Inc. ‘European-Americans love Henkel products... and for good reasons. Persil laundry detergents, Vernel fabric softeners and the unique Black Magic and Perwol products are extremely effective and leave garments feeling good, smelling fresh and brilliantly clean.’ All front-loading washing machines require the use of high-efficiency (HE) laundry detergents and few manufacturers have Henkel's expertise as a 130-year-old trusted European brand. In America, Miele strongly recommends using Henkel's Persil products in its washing machines because it offers users the absolute best performance out of their machine.

Henkel's household cleaning products are available exclusively through authorised Miele dealers throughout the United States or can be purchased directly and securely from Miele by logging on at http://www.miele.com.

Henkel laundry products Miele distributes in the U.S. include:

* Persil Powder - An excellent all-purpose detergent suitable for whites, light colors and colorfast fabrics.
* Megaperls & Megaperls Color - A highly effective concentrated laundry detergent with color-safe oxygen bleach. Megaperls Color is specially formulated to deep-clean heavy stains and safely clean bright and dark colors.
* Persil Sensitive - The perfect choice for people with sensitive skin or allergies contains no dyes.
* Power Gel & Color Gel - A surprisingly small amount of these highly concentrated liquid laundry detergents gently clean all types of washable fabrics.
* Black Magic - Keeps black and dark-colored items looking their dramatic best, while guarding from graying and pilling.
* Perwoll - The safe and gentle way to care for woollens and fine fabrics.
* Vernel Fabric Softener - Leaves laundry feeling extra soft, with a fresh, pleasant fragrance. Helps fabrics resist wrinkles, making ironing easier.

Other household cleaning products imported by Miele include:

* Somat Rinse Aid - Makes a run through the dishwasher like a spa visit for dishware. Minimises spotting, too.
* Somat Salt - Optimises cleaning results, even in regions with unusually hard water.
* Sidol Steel and Ceramic Cleaner - Keeps stainless steel appliances and other household surfaces looking their best.
* Sofix Stone Care - Safely cleans stone floor surfaces, inside or out.
* Sofix Parquet Care - Provides longwearing protection for expensive wood floors, with a pleasing natural shine.


New Marking on Twyford Vitreous China Labels

From 1st January 2006 new messages started appearing on the packaging of all Twyford WCs.

Its all to do with CE marking which all sanitaryware producers will eventually be obliged to follow if they wish to sell their products in Europe.

The labelling changes are a result of a CONSTRUCTION PRODUCTS DIRECTIVE - a European Union initiative. It will be a legal requirement in Europe from 1st Dec 2006. Twyford is well ahead of the pack.

CE Marking
CE marking has been in use since 1993 and is seen on all sorts of products sold in Europe. But now it’s coming to Sanitaryware. First on WCs, then later on most VC products.

The CE marking system ensures that there is no barrier to trade within Europe. It is not a ‘quality’ mark but it is a mark which states that the product has been assessed and does comply with national technical requirements. Products imported into Europe from elsewhere (eg. the Far East or the US) must also be CE marked.

As you would expect from a quality supplier supporting its customers all Twyford WCs fully conform to the required technical standards and now have the CE mark fixed to the packaging label.

Twyford Bathrooms is well in advance of the legal requirements.


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