Welcome to THE K&BZINE News 28th January 2005

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AMA Report on the UK Shower Market

A review of the UK Shower Market by AMA Research shows that in 2004, the interest rate increases and the slowdown in the housing market influenced the shower market with lower growth levels. However, compared with other consumer durables sectors, the shower sector continues to perform well with comparatively high growth rates.

The report analyses the market size and trends, and the major suppliers in terms of shares and characteristics. In addition the key products sectors are also examined with market size and trends for each sector provided. Distribution channels are also assessed as part of this comprehensive study.

Emphasis is given to both quantitative and qualitative assessments of market developments with interpretation of relevant data to give support to the trends and to provide a basis for extrapolating future prospects.

In 2003, the shower equipment market was worth an estimated £408 million at manufacturers' selling prices (MSP).



Growth was particularly high in 2002 and 2003, with the buoyant housing market in particular encouraging mortgage equity withdrawal to fund home improvements. In 2003, the market remained largely unaffected by the unstable global and political economic situation, despite fears that consumer confidence and the housing market may be affected.

Growth levels are expected to remain similar in 2005, largely influenced by the current economic and political uncertainty. In addition, the housing market continues to slow down which is likely to influence the level of expenditure on home improvements.

Shower controls continue to account for the greatest proportion of market share and have continued to grow in recent years in line with trading up and additional shower installations. Similarly, the enclosures, screens and trays sector has experienced substantial growth in recent years.

The shower controls market was worth an estimated £198 million at MSP in 2003 having experienced significant growth in value during the last five years due to a number of factors. The wider exposure and awareness of showers has increased penetration levels, while the trend towards higher specification products and the greater focus on design and style has boosted the replacement sector. In addition, the increasing levels of expenditure on home improvement has also contributed to the growth of this market.

General trends continue towards more powerful showers, in both the mixer and electric product sectors. Electric showers continue to hold their dominant market position, although mixer showers have increased their share in both volume and value terms mainly at the expense ofthe electric sector. Bath/shower mixers remain static, mainly supported by the new housebuild sector, although there to be appears a slight shift towards separate mixer controls in this sector.

The emphasis continues to be placed on higher value, high specification products and trading up by consumers in order to maintain value growth.

The leading suppliers of shower controls in terms of volume are Triton and Mira. Aqualisa, Gainsborough and Newteam continue to take a significant share, while other companies competing in the mid-upper sectors ofthe market such as Grohe, Hansgrohe and Bristan etc continue to grow.

In terms of distribution, Builders Merchants continue to hold the dominant share of sales, and the bathroom specialists have grown in popularity, mainly due to the trend towards higher quality products and increased expenditure on home improvement projects such as bathroom refurbishment. The DIY sector also commands a significant proportion of the market and is continually expanding the range of products offered.

The market for enclosures, screens and trays was worth an estimated £168 million at MSP in 2003 having experienced particularly buoyant growth in recent years and it is predicted to continue growing at a positive rate in the medium term. Factors such as the growth of ensuites and shower facilities in new build housing, increasing levels of home improvements, growing replacement levels and the trend towards larger and higher specification enclosures and trays have all supported the value and volume growth ofthis sector during the last two years.

Current sales volumes in 2003 are estimated at 651,000 enclosures, 530,000 screens and 680,000 trays.

With a current estimated household penetration of non-bath shower installations at some 25-30%, the market has considerable potential for future development. Product quality is generally improving, as consumers demand higher quality products and in the trays market, there is a general trend towards larger sizes, with an increasing number of consumers replacing the bath with a shower enclosure.

Leading manufacturers include Jacuzzi, Aqualux, Daryl and Showerlux, Manhattan and Matki.

The two main distribution channels in this product sector are Builders Merchants with 53% volume share and the DIY multiples, with 26% share by volume and the bathroom specialists with l9%. The bathroom specialists sector has increased its share in the last two years, as consumer demand has favoured higher quality/value products. The bathroom specialists therefore command a significantly higher value share in this market.

The shower accessories is currently value at £42 million at MSP having experienced modest growth in recent years supported by a wider product choice in terms of styles and designs, increasing shower penetration and greater consumer awareness. However, price competition in this sector is high largely due to the nature of distribution, which is dominated by the DIY and the High Street sectors. Therefore value growth is expected to slow, with some sectors likely to experience a decline, as the level of shower enclosures and screen penetration increases.

The leading supplier of shower accessories is Croydex, while the majority of products are distributed via DIY multiples and department/variety stores.

This 115 page report is available now and is priced at £595.

Tel: 01242 235724
Email: mailto:marketing@amaresearch.com
Web: http://amaresearch.co.uk


Underwood Kitchens Pays Tribute to Installation Manager

Jane and Martin Cheel, owners of Underwood Kitchens, have paid tribute to the bravery of their former installation manager, Alan Pepper who sadly passed away on the 18th January after a long battle with stomach cancer.

Alan had been at Underwood Kitchens for 11 years, he started as an installer and progressed to become the company’s technical expert and problem solver.

Jane Cheel said: ‘We are all saddened by Alan’s death. He was a fantastic person to have around, with a great sense of humour and an infectious commitment to working hard and getting the job done. He made many friends during his time at Underwood Kitchens and we will all miss him..’

Alan was 55 years old and leaves behind a widow, Rose, and two teenage sons, James and Harry.


Bathrooms & Kitchens EXPO 2005 Seminar Programme Confirmed

Exhibitions are not just a time to source and meet new suppliers, place orders and network within the industry, they also provide an invaluable opportunity to step away from the day-to-day routine of the office, and become inspired.

The organisers of Bathrooms & Kitchens EXPO have announced the complete seminar programme, for 2005's unique bathrooms and kitchens trade exhibition to be held at London's premier venue, ExCeL, from 8-10 May.

The programme will kick off with an interview with Naomi Cleaver, presenter of Other Peoples House, Honey I Ruined the House and Britain's Best Homes for Channel Four. As well as television presenting, Naomi is a weekly columnist for The Daily Telegraph and runs her own agency putting clients in touch with the right designer for their project.

Continuing the inspiring programme on Sunday 8th May Dulux's colour expert Lisa Pilley will talk on the use of colour in a seminar entitled, 'Making Sense of Colour'. As a great complement to this theme on Tuesday 10th May Chris Piff from Franklite will speak on the ways in which lighting can be employed to enhance colour - and how it affects the colours we choose.

On Monday 9th May, Sebastian Conran will offer his international expertise on the current and future trends in bathroom and kitchen design, at a seminar entitled,'Surfing the Trend'. Alessandro Finnetto, Director of Global Consumer Design at Whirlpool Europe, will give an insight into the best of built in appliance design. Inclusive bathroom and kitchen design, and the ways to optimise access for the infirm and disabled, is a subject to be addressed by Tricia Sweeney, an access officer with the London Borough of Islington.

David Mote, TTA's Head of Corporate Communications and ex House Builders Federation Marketing Director, heads up the seminar programme on Tuesday 10th May, transporting his audience into the mind of the end-user, to look at the impact kitchens have on the house-buying process. A panel, chaired by the Editor of Tile & Stone Journal, Joe Simpson, will quicken the pace with a debate of differing views about European design trends in tiles. Steve Martin from CEDIA (Custom Electronic Design Installation Association) will round off the programme with an informative seminar on a growing trend - the smart controls in our home.

Event Director, Richard Dray said:
'This year the seminar programme covers a diverse range of topics, indicating the widening interest in the bathrooms and kitchens market. These seminars are a great opportunity to share the knowledge of some of this industry's most prominent figures and experts.'

Information about all the topics and speakers is available on the EXPO website at http://www.bkexpo.co.uk. Reserve your seminar place and register for free tickets online or telephone 01923 690685 to request forms by post.


European Chapter of IKBA is Launched in Cologne

The European chapter of the International Kitchen Bathroom Association held its inaugural meeting at international furniture fair IMM Cologne.

Kitchen Bathroom Bedroom Specialists Association chief executive Graham Hayden and former association corporate chair Patrick Love were amongst attendees, as were representatives of the interiors industry from Germany, Spain, Italy, Holland and Switzerland.


Graham Hayden and Patrick Love, (left-right back row), with other representatives from Spain, Italy, Germany, Holland and Switzerland


The European chapter was officially launched in Chicago last April and the KBSA actively supported its formation.

‘This was an excellent inaugural meeting and everyone welcomed the opportunity to network with overseas representatives from the industry,’ said Graham Hayden.
‘We have enjoyed close links with the North American association, NKBA, for many years and are fully supportive of this worldwide alliance.

‘At last we are making real progress in dealing with common European issues that relate to our marketplace and the KBSA is delighted to be taking the lead role for the UK.’

Following the meeting a press conference was hosted by the NKBA to welcome the European group.

The mission statement of the newly formed European chapter states that the association will promote professionalism within the kitchen and bath industry and will share information and resources on a global basis.


Another Added-Value Package from Waterline

Waterline has announced a new service to customers of Franke sinks that not only minimises costly damages and shortages but also improves product storage capability. Waterline says that it is the only Franke distributor to implement an in-house, custom-made packaging system that both protects the product and retains all small fittings from delivery to installation.

Marketing Director, Tim Hutchinson, said: ‘Our substantial investment in specialised packaging will bring significant benefits to our customers and at no additional cost. It’s about getting it right first time to save everyone time and money, to say nothing of hassle and aggravation. And because re-cycling is an increasingly important issue for all businesses, the empty packaging can be returned to us for re-use.’

Tel: 0870 5561560


Showerlux Rewards Long Service Stars

More than 30 employees who have stayed the course at bathroom specialist, Showerlux, received long service awards from managing director, Bob Bowler, at a presentation lunch at the head offices in Coventry recently. The staff members have clocked up more than 462 years between them and the company was keen to reward their loyal service.

In all, 31 employees were presented with an award in recognition of their work in departments ranging from personnel and production to credit control and customer services. The longest-serving staff including Su Demaine who has worked at Showerlux for 30 years, were presented with a 9 carat gold badge.

Employees who have worked at Showerlux for 15-20 years received a solid silver long service award badge, while those who had worked there for 10-15 years received a specially commissioned watch.

Managing director, Bob Bowler, said: ‘The fact that so many of our staff stay with us for many years demonstrates that Showerlux is a good company to work for and we are very proud of that. We were keen to mark the knowledge and expertise that our longest serving members of staff have developed over the years and we hope to be celebrating with them and other employees again, in another 10 years.

‘We have 150 staff based at our head office and we are delighted that so many continue to stay with us and bring the benefit of their knowledge and expertise to the company and our customers,’ said Bowler.


Homestyle Group Upbeat Despite £6.2m Losses

Homestyle operates in the UK and specialises in furniture retailing through its Furniture Division (177 Harvey's stores) and its Beds Division (430 outlets across Bensons, Sleepmasters and Bed Shed brands) In a tough market the group has managed to claw back some of last year's losses.

Summary

• Turnover from continuing businesses £206.5 million (2003: 27 weeks, £182.5 million);
• Operating loss before interest, exceptional items and goodwill amortisation of £0.2 million (2003: 27 weeks, profit of £0.4 million);
• Loss on ordinary activities before tax £6.2 million (2003: 27 weeks, loss of £9.5 million);
• Satisfactory Christmas and New Year trading performance; Group total sales up
13.3% for the 12 weeks to 22nd January 2005;
• Review of Furniture Division completed; improving trading performance in line with management's expectations;
• Strong performance from Beds Division; sale process continues as a potential Management Buy-in.

Commenting on the results, David Brock, Executive Chairman, said: 'The trading environment remains competitive in both our home-related markets and the outlook for consumer spending remains uncertain. The Boards' objective to reduce Group debt remains a primary focus for management. The new and restructured management of the Furniture Division has put in place a number of successful initiatives, which have stabilised and improved the performance of Harveys. The Beds Division has delivered another strong performance and continues to lead the UK market in bed retailing.



Chairman's Statement
The focus of the new management team has been on reducing Group debt to more appropriate levels, reinvigorating the Furniture Division and supporting the continued successful development of the Beds Division. The new and strengthened management team of the Furniture Division has conducted a thorough review of all elements of Harveys and successfully created a stable platform from which to develop the business further. During the period, the Beds Division has delivered another strong performance and continues to lead the UK market in bed retailing. The Group continues to progress the potential disposal of its Beds Division, now as a management buy-in, with Spring remaining the target timescale for the transaction.

Financials
Turnover on continuing businesses for the 26 weeks to 30th October, 2004 was £206.5 million (2003: 27 weeks, £182.5 million) with margins at similar levels. Operating loss before interest, exceptional items and goodwill amortisation was £0.2 million (2003: 27 weeks, profit of £0.4 million). The net interest charge for the period was £1.4 million (2003: 27 weeks, £3.5 million). After interest, exceptional items and goodwill amortisation, the loss before tax was £6.2 million (2003: 27 weeks, loss of £9.5 million). Exceptional items amount to £2.2 million for the period and consist mainly of financing costs.

Basic loss per share was 8p (2003: 27 weeks, loss per share of 12.5p) and the loss per share adjusted for exceptional items and goodwill amortisation was 1.0p (2003: 27 weeks, loss per share of 3.4p). Given the current debt situation, the Board's view remains unchanged with regards to the payment of a dividend. As a result, the Group does not intend to pay an interim dividend.

Net debt as at 30th October 2004 was £57.6 million compared to £118.4 million on 1st November 2003. The reduction is mainly due to the disposal of Rosebys, formerly the Group's Textiles Division. The Group has also achieved a more efficient management of working capital in its continuing operations.

During the first half of the year, there was an overall cash inflow of £7.7 million versus a cash outflow in the comparable period last year of £5.8 million. The current year's cash inflow included the proceeds from the sale of Rosebys as well as the significant repayment of bank loans to the Group's syndicate, in line with the Group's primary objective to de-gear the business.

At an operating cash flow level there was an outflow of £14.9 million in the first half versus last year's neutral position. Of this amount, £12 million relates to working capital changes, primarily related to the disposal of Rosebys in May 2004. In addition there was a significant increase in stock to improve product availability and to merchandise the new Beds Division outlets.

Divisional Reviews


Furniture Division (Harveys)
Total sales were £111.6 million (2003: 27 weeks, £110.4 million). This result was achieved from a significant 15% reduction in space, as last year's figures included the selling space from which Harveys sold its own beds and textiles products. Like for like sales figures continue to have little relevance given the substantial space reconfiguration that has taken place over the last year. Margins fell by 3.6 percentage points as anticipated, mainly due to a combination of product mix and the clearance of beds and textiles stocks to accommodate the furniture only format. In addition, there were also higher financing costs due to increased interest rates and a higher take-up of customer finance. Operating loss before interest, exceptional items, goodwill amortisation and tax was £6.5 million (2003: 27 weeks, loss of £5.2 million), mainly due to the final clearance of old textile and bed stocks previously retailed through Harveys.

Following the business review by the new management and the successful implementation of a number of trading initiatives, a stable platform from which Harveys can grow has been established. A strengthened and simplified management team, renewed emphasis on retail disciplines to enhance the presentation of the offer and a focus on furniture only, have begun to produce the expected sales benefits. lmproved ranging and in-store marketing have also contributed to the Division's performance, as has the introduction of a more compelling retail offer.

Amongst the initiatives implemented during the period, was the re-launch of the entire Harveys estate, now using the 'Harveys - the Furniture Store' brand. This re-launch has improved customer awareness and involved replacement of external signage and interior refurbishment, including the refreshment of point of sale merchandising. These initiatives were completed without significant disruption to trading levels. A new buying team is now in place and supplier relationships have benefited significantly. In addition, work progressed on the re-engineering of the support and supply chain functions, leading to greater stock availability and shortened lead times through the important Christmas trading period. A significant amount of staff training has also taken place in order to improve conversion rates and ensure the business builds a more customer focused and sales orientated culture. However, the market is increasingly competitive and consumer confidence remains uncertain. The recovery of the Division to an acceptable level of profitability is a challenging process and will take some time to achieve.

Beds Division (Bensons Beds, Sleepmasters and Bed Shed)

The Beds Division has once again turned in a strong performance during the period. Total sales increased by 39% to £94.9 million (2003: 27 weeks, £68.2 million) with 21% of the period's sales uplift resulting from the additional space transferred to the Beds Division from Harveys. Sales on space transferred from Harveys doubled during the period. Operating profit for the period rose to £6.6 million (2003: 27 weeks, £4.9 million) and the Division delivered margin growth and strong cash generation.

The Division now operates from 1.2 million square feet in 430 outlets. During the period, 47 new outlets were opened, including the introduction of the Bed Shed operation into Northern Ireland, where it has traded above expectations. Margins have moved ahead by 1.3 percentage points, due to a more efficient supply chain, product innovation and re-engineering, tighter discount control and up-selling of higher margin product. This performance has been achieved in spite of a significant increase in global raw material prices during the period, including steel and petrochemical based materials. The Division's management has also put particular emphasis on improving supply chain management processes, which has led to a shortening of lead times between customer order and delivery.


Wolseley plc Board Changes

Wolseley plc, the specialist trade distributor of plumbing and heating products and a leading supplier of building materials to professional contractors, has announced that Mr Gerard Legtmann left the Company on 24th January 2005 to pursue alternative opportunities. Mr Legtmann was appointed as Chief Executive Officer for Europe in August 2003 and has overseen the creation of the infrastructure for an integrated Wolseley European business.

At the same time Mr Robert Marchbank has been appointed to succeed Mr Legtmann as Chief Executive Officer for Europe and as a director of the Company.
He is currently the Director of Information and Processes for the Wolseley Group.

Robert Marchbank, aged 44, is an American citizen. He joined Ferguson, Wolseley's US plumbing and heating business, in 1982. During his period with Ferguson he undertook a number of strategic and operational roles. In 2001 he moved to the UK to join the newly created Wolseley Group headquarters as Director of Strategic Planning. In this role and in his current position, he has
played a key part in developing and implementing the Group's strategy and IT platform.

Charlie Banks, Chief Executive Officer of Wolseley said 'I am delighted with Rob Marchbank's appointment. Rob has made a significant impact on Ferguson's and the Group's success over the past 20 years and I am sure he will bring all of that experience to bear in his new role.'

John Whybrow, Chairman of Wolseley said 'I am delighted that we are able to make this senior appointment from within the organisation and Rob will bring a number of additional skills to the Wolseley Board. I would like to thank Gerard for his contribution and we wish him well in the future.'


New Location Announced for Expotile 2006

In response to the success of Expotile 2004 and the recent industry research undertaken by CMP Information Ltd and the Tile Association, a new location has now been confirmed for the 2006 event. Meeting industry demand, the show will continue to take place every two years and will be relocated to hall 19 of the NEC Birmingham, situated right at the very heart of KBB - the UK's most prominent exhibition dedicated to the kitchen, bathroom and appliance industries.

As the only dedicated tile exhibition in the UK, Expotile will retain it's own identity with a tailored sales & marketing campaign, remaining part of the UK's largest and most comprehensive interiors trade fairs. The show will maximise its attendance from a growing number of crossover visitors in addition to its exclusive visitor audience as seen by the attendance figures for 2004. A massive 16, 769* trade visitors passed through the hall over the four days of the show, largely due to the benefits of the crossover from KBB.

Event Director Andy Braid comments, 'We are delighted to announce the new location for Expotile 2006. With the increased consumer trend for tiles within kitchens and bathrooms, I am confident that such a move will promote growth and development for the show in the house building, specification and construction markets. We welcome the opportunity to build on the achievements of 2004.'

Lesley Reid of the Tile Association adds, 'We wholeheartedly support the decision to reposition Expotile at the heart of KBB. The move proves that the show organisers have listened to the voices of the industry and responded accordingly. Expotile can only go from strength to strength.'

Since announcing the move to the industry, 25% of space for Expotile 2006 has already been allocated.

For your chance to be part of Expotle 2006, contact Samantha Cande on 020 7921 8438 or email mailto:scande@cmpinformation.com


DuPont Corian and Zodiaq Awarded Hygiene Certificates by LGA QualiTest

DuPont™ Corian® solid surfaces and DuPont™ Zodiaq® quartz surfaces have received important hygiene certification by LGA QualiTest GmbH, the prestigious independent product testing company belonging to Germany-based organisation LGA (Landesgewerbeanstalt Bayern).

Corian® and Zodiaq® were awarded the certificates by LGA QualiTest GmbH after undergoing a stringent range of tests to assess their stability against bacteria and fungi, their ease of cleaning, and their design rating from a hygiene standpoint.

‘This accreditation confirms that Corian® and Zodiaq® offer excellent benefits wherever high standards of hygiene are crucial, such as in healthcare and food preparation environments.’ said Simon Langlois, Marketing Director for DuPont Surfaces in Europe, Middle East and Africa. DuPont Surfaces is the business of DuPont which handles Corian® and Zodiaq®.

During the tests, which encompass the former ISO (International Standards Organisation) accreditation, Corian® and Zodiaq® were measured against other surfacing materials such as laminate, stainless steel, and ceramic. The materials were contaminated with three virulent types of bacteria – Esherichia coli, Pseudonomas putida and Bacillus subtillis – and observed after an hour to ascertain fungal growth. They were then tested following for how well they performed after cleaning. Both Corian® and Zodiaq® achieved strong ratings in these tests.

Other popular surface materials perform less well
By contrast, other materials commonly used for surfacing were found to perform less well. Granite retained micro-organisms to a greater extent than other materials, due to its natural cracks and small crevices, while the ceramic surface retained impurities that could not be removed by cleaning. Laminates with wood or paper surfaces showed a very heavy mould growth when exposed to moisture.
‘We are delighted to have received this accreditation from LGA, which formally quantifies the hygienic qualities of Corian® and Zodiaq®. We believe that DuPont Surfaces offer a useful tool in the combat of bacteria, while allowing the design of environments that are warm, welcoming and user-friendly.’ added Simon Langlois.

Corian® already renowned for hygiene benefits
Corian® - an exclusive product of DuPont - has long been recognised for its hygienic qualities, and is used across the healthcare sector in hospitals, laboratories and dental surgeries. The non-porous surface has no voids in which bacteria can hide, making the surface easy to clean thoroughly. Added to this, pieces of Corian® are joined using a special adhesive (based on the same composition of Corian® solid surface) and is therefore functionally seamless, enabling the creation of large areas – for example in an operating theatre – without dirt traps. This quality also opens the door to numerous design features such as curved backsplashes, which ensure there are no awkward corners to reach when cleaning.

While Corian® has long been established as a valuable material for the healthcare sector, Zodiaq® combines ease of cleaning with a dramatic aesthetic, making it a particularly suitable partner in restaurant and food service environments, as well as kitchens and bathrooms in both commercial and residential installations. Non-porous like Corian®, Zodiaq® is easier to clean than many stone-based materials. In addition, it retains its surface gloss without the need for surface sealants, and is therefore simple to maintain.

Web: http://www.dupont.com


Ritec Sparkles in Dorchester's Showers

Ritec’s ClearShield has brought the sparkle back to stylish shower screens at The Dorchester in London, one of the world’s most luxurious hotels. Shower enclosures in selected rooms have been treated with ClearShield – an award-winning glass protection system developed by Ritec to convert high maintenance unprotected glass into Low-M (Low Maintenance) Glass.

Glass shower doors and enclosures are particularly susceptible to surface damage and discolouration because of the many salts and minerals (limescale) found in tap water, which bond to the glass and eventually etch the surface. In addition, dirt and greasy substances, such as soap and shampoo, accumulate in the microscopic valleys of the glass surface, making cleaning difficult and labour-intensive. Faced with just this problem in elegant art-deco style bathrooms on the second floor, The Dorchester’s in-house engineering team appointed Preedy Glass to look for a solution. Preedy turned to Ritec’s proven ClearShield system for an effective and long lasting solution.

Treating glass with ClearShield creates a chemically non-reactive and ‘non-stick’ surface. As a result limescale and general dirt only builds up half as fast and cannot bond to the glass. Alongside the obvious aesthetic benefits, cleaning time and frequency are cut, on average, by 50%. The treated glass is quicker and easier to clean, without the need for harsh chemicals, so contributing to a significant reduction in maintenance time and costs.

At The Dorchester, discoloured glass in shower enclosures was renovated with specialist products before ClearShield was hand-applied by Ritec applicators with the minimum of disruption to the Hotel and its guests. Once cured, any residue coating is simply washed off, leaving a sparkling, stain-resistant surface that will retain its visual appeal for much longer. Commenting on the success of the ClearShield treatment process, Kevin Flaye of The Dorchester’s engineering team says, ‘The shower screens being free of limescale helps keep the bathrooms looking as good as our guests would expect.’

Preedy Glass uses the ClearShield process at its factory ‘all the time’, according to Mike Preedy, Director of Preedy Glass. ‘It was the first time we have used it on site, and it worked well,’ he comments.

Tel: 020 8344 8210
Web: http://www.ritec.co.uk


Bognar to Lead Maytag's Sales Organisation

Maytag Corporation announced on 26th January that Paul J. Bognar will assume a new role as senior vice president, sales, effective February 1st, 2005.

Bognar, currently vice president and general manager, Canada, for Maytag International, will replace Christopher D. Wignall, who will assume a new role working on special projects focused on Maytag's growth initiatives. Both will report directly to Ralph F. Hake, Maytag chairman and CEO.

In his new assignment, Bognar will be responsible for leading Maytag's field sales organisation in developing and executing strategies to achieve profitable sales growth through the organisation's various customer channels.

'Paul is a very talented member of our senior leadership team, and I am very pleased to announce his new appointment,' said Hake. 'Paul's demonstrated leadership in his current role with Maytag International, as well as his tremendous customer-focused discipline, will provide our sales organisation with new energy and urgency for driving business results.'

Bognar, 45, joined Maytag in 2002 as general manager, Canada, for Maytag International. He was named vice president and general manager in 2004. He brings more than 20 years of sales and general management experiences to his new assignment with Maytag, including previous positions at Whirlpool, Panasonic and Kohler.

Wignall, 44, began his career with Admiral in 1983 and served in various executive positions with Maytag Corporation and Maytag Appliances, prior to becoming senior vice president, sales and marketing for Maytag Appliances in 2003. He was named senior vice president, sales, in 2004.

Maytag Corporation is a $4.8 billion home and commercial appliance company focused in North America and in targeted international markets. The corporation's primary brands are Maytag®, Hoover®, Jenn-Air®, Amana®, Dixie-Narco® and Jade®.


Direct Line Home Insurance Sponsors Home of the Year Award

The National Home Awards, a new programme designed to recognise and celebrate success and innovation in the home interest market, announced on 25th January that Direct Line Home Insurance will be sponsors of The Home of the Year category to be known as The Direct Line Home Insurance Home of the Year Award.

The Direct Line Home Insurance Home of the Year Award consists of 3 categories and within these judges will look at three types of homes - Small Home of the Year for apartments, flats and small houses (under 1000 square feet); House of the Year and Luxury Home of the Year.  The Home of the Year Award is a particularly exciting category because any member of the public may enter their own home.

The National Home Awards will culminate in a glittering gala dinner at Armoury House in the City of London on Tuesday 9th June 2005, and the Home of the Year Awards will reward those people who have used their own style or initiative to develop their dream home.

Adrian Tripp, chief executive of the Awards, said 'We are delighted to have Direct Line Home Insurance as a key category sponsor. The Home of the Year Awards will be surrounded by prestige and it is fitting that such a recognised and respected brand be associated with it.'

Andrew Lowe, of Direct Line Home Insurance said: 'We are delighted to be sponsoring the Home of the Year Award. Many homeowners will have put significant time and money into improving their homes and this is a great opportunity for their efforts to be recognised.'

Anyone interested in nominating their home should visit the website at http://www.nationalhomeawards.com website or see the entry coupon in Ideal Home magazine. Nominations close on 15th March and the announcement of the 5 finalists will be made in late March 2005.

About Direct Line Home Insurance:
Direct Line Home Insurance protects over 1 million homes in the UK and was recently voted 'Best Household Insurer' by Mortgage Magazine.

Call Direct Line on 0845 246 8000 or go online at http://www.directline.com to get a quote. Cover can be arranged straight away.


Maytag Ceases Sale of Appliances through Best Buy in USA

Maytag Corporation announced on 19th January that it will no longer sell Maytag-branded major appliances at the speciality retailer, Best Buy.

Maytag will continue to sell its Hoover floor care products at Best Buy, which remains an important floor care customer.

'We have a good business relationship with Best Buy. However, our white goods business with the speciality retailer has significantly declined over the years,' said Ralph F. Hake, Maytag chairman and CEO. 'At this time, it does not make sense to continue selling our major appliances at Best Buy.'

Hake said that sales of Maytag's major appliances at Best Buy have significantly declined over several years. In 2004, they represented about 1 percent of Maytag's consolidated revenue.

The discontinuation will become effective later in the first quarter 2005. Maytag and Hoover branded products continue to be available at thousands of department, retail and home improvement stores across the country, including Maytag Stores.


Pro-Cut Looks to the Future with Weeke

Pro-Cut and associate company P&R Shopfitting says that it epitomise the new breed of high-tech and pro-active out-source manufacturing facilities that see the future through investment in cutting edge technology.

Partners Paul Cannon and Robert Wheeldon set up P&R Shopfitting in August 2000 on the basis of their shared experience in the retail shopfitting and fit-out sector for blue chip companies and chains.

By their own admission, looking round their modern 6,000 square feet facility, it was somewhat of a leap in the dark for two enthusiastic but knowledgeable guys who started with a couple of toolboxes in the back of vans.

So the recent installation of a state-of-the-art Weeke CNC BHC550 machining centre with the latest concept matrix clamping table is a testimony to the remarkable progress made to date.

While P&R was set up to supply a complete shopfitting service - from designs to fulfillment - both Robert and Paul had enough established contacts in the industry to be confident of securing the bulk of their work in sub-contract projects.

The aim was to offer a service flexible enough to live up to their ‘can do’ maxim and guarantee a quality product to rigid delivery deadlines. Cutting edge technology was the only guarantee of achieving this and both men made a conscious decision only ever to invest in the best - no cutting corners or short cuts.

On the project acceptance and design side of things Paul Cannon has embraced the latest in CAD tools and software to translate a variety of dimensions, instructions and drawings into working files. On the production side total flexibility and reliability were required and this is where Simon Brooks of Homag U.K. became involved.

Robert Wheeldon explains: ‘We did an enormous amount of research into the CNC machinery market both on our own and visiting and talking to users of various types. At the end of the day we knew that we had to get involved with a supplier like the Homag Group, the biggest and most advanced in the world.’

Robert also makes the point that the significant UK investment that is Homag U.K. in Castle Donington with its engineering, back-up and support infrastructure was a crucial element in the decision.

What Simon Brooks brought to the table was a very special expertise in CNC technology both from the point of view of specialising in the Weeke products and having worked with the company previously in industry, when it purchased its Brandt edgebander. His ability to understand P&R and Pro-Cut's immediate and future requirements was essential to the correct specification of the CNC machine.

‘A number of things were particularly important to us’ explains Paul Cannon. ‘We wanted a superbly engineered machine that would give us long-term reliability and accuracy. We wanted a machine that wouldn't restrict us in product and design scope. We also wanted a machine that we could use to its maximum potential - easy but wide ranging software and fast, high performance.’

All of these considerations were factored into the planning of the Weeke's specification.

The objective was also to future-proof the machine for the growing roll that Pro-Cut's involvement in taking on sub-contracted CNC work in the general market would involve.

The Weeke, now working to total satisfaction at the facility, is an Optimat BHC550 Matrix with a 3250mm x 1350mm working area for nesting parts from full sheets and is also capable of machining components on a single or tandem load basis.
Worktable loading, unloading and positioning were an important consideration and the machine is specified with a strong 500 cubic metre/hour vacuum system operating through zone shut off valves so that there's no need to make changes to rubber seals etc - a working zone is merely selected and the relevant switches activated. The resultant flexibility and time savings are very important.

The main spindle for high speed routing is a 9kW, 24000 rpm liquid cooled design and a high speed drill block supports 12 individually selectable vertical and 6 horizontal spindles along with a grooving saw. A C-axis allows horizontal processing like lock mortise cut-outs or hinge recessing on doors to be carried out.

The Homag WoodWop programming software has been ‘an absolute joy’ to learn and work with according to Robert Wheeldon and, with regard to the Weeke's engineering, it's ‘built like a tank’ he says.

P&R and Pro-Cut are already managing to occupy a large amount of the Weeke's production time. ‘A machine like this actually creates work for itself - it is that flexible’ says Robert Wheeldon who already talks about expanded premises and the next Weeke.

Tel: 01332 856500
Email: mailto:sales@homag-uk.co.uk
Web: http://www.homag-uk.co.uk


Blumotion does the Talking at Update

Based near Woodbridge in Suffolk, Update Interiors says that it exemplifies the growing trend for using very high quality cabinet makers to create bespoke designs for individual customers. While the company’s product description reads ‘kitchens, bedrooms & bathrooms’, the company is well equipped to undertake a variety of interior work in other areas from living rooms to home office fit outs.

Started five years ago, Update has experienced year-on-year growth and has set up a showroom of kitchen designs (accounting for some 70% of the company’s work) adjacent to its workshops. ‘We rely on referrals and word of mouth for new business’ explains partner Peter Esteller, ‘but we also get much repeat business as a result of our reputation.’

This reputation has been built on the use of only the best materials and the latest technologies and fittings. ‘We concentrate on design behind the cabinet door and drawer front just as much as we do on the visual element. Function, storage and systems are all vital sales points and advantages that our customers quickly come to enjoy, rely on and talk about’ says Peter Esteller.

In this context the latest Blumotion system for self-closing and soft retention of full extension drawers and on cabinet doors are fitted as a standard in all Update designs. ‘This is a fantastic sales tool and talking point - almost a USP’ Peter explains.

In the company’s current showroom - and a new 1200 square feet facility is soon to be opened at Neeedham Market near Ipswich - the casual opening and flicking closed a drawer fitted with Blumotion is enough to get the potential customer's full attention. No matter whether the style is to be traditional, luxury or futuristic.

‘We use Blum drawer systems because they are the best - they suit our design demands, they suit our manufacturing systems and they are a genuine sales tool.’ Peter Esteller says his customers are discerning and recognise quality. By offering them genuine functional advantages as well he enhances Update's growing reputation for not only quality, but innovation as well.

Tel: 01908 285700
Email: mailto:info.uk@blum.com
Web: http://www.blum.com


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