Topps
Tiles Announces Preliminary Results for the 16 months ended 27 September
2003
Commenting on the results, Nick Ounstead, Chief Executive said: 'We are
delighted to report another excellent period of trading for Topps with
record profits and increased market share. Our strategy remains simple;
to provide excellent value, choice and service to our customers. We are
confident that the fundamental strengths of our brand and the proven retail
concept will enable us to continue delivering profitable growth for the
benefit of our shareholders in the future.'
Financial Highlights
• Group turnover up 22.4% to £152.21 million (2002: 124.34
million)
• Like for like sales increased 14.3%
• Core store (stores opened pre September 2001) like for likes 11.7%
• Gross margin improved to 57.5% (2002: 56.4%)
• Operating costs decreased as a % of Group turnover to 42.3% (2002:
43.3%)
• PBT up 45.6% to £23.55 million (2002: £16.18 million)
• Net margin 15.5% (2002: 13.0%)
• Basic EPS increased by 45.0% to 36.4p (2002: 25.1p)
• Dividend policy changed to 1.67 x cover (2002 2.5x cover)
• Final dividend of 15.40p per share to be paid on 2.2.04
• Full period dividend of 21.75p per share an increase 204% increase
Operational Highlights
• 25 new stores opened
- 19 Topps Tiles
- 6 Tile Clearing House
• 17% UK market share
• Retail tile market set to grow by 18% over the next three years
• New warehouse to be operational in early 2004
• First seven weeks of new financial year, overall turnover increased
by 25.2% with like for like sales showing a 14.9% increaseGroup turnover
has increased by 22.4% over the 16 month period ended 28 September 2002
to £152.21 million with profit before tax increasing by over 45%
to £23.55 million.
The Group has now achieved double-digit growth in both sales and profit
before tax in every period since its public listing in June 1997.
A growth of 14.3% in like for like sales was recorded for the 16 month
period demonstrating the underlying strength of the ceramic tile and laminate
and wood flooring markets.
Our Balance Sheet remains robust with net assets of £30.82 million
(1 June 2002: £23.82 million) and net cash balances of £15.16
million.
The Group continues to be cash generative even though we continue to significantly
invest in new store openings and the refurbishment of older stores.
Barry Bester, currently executive chairman and Stuart Williams currently
Deputy Chairman will become Joint Chairman with immediate effect.
The Group has made significant progress this financial period opening
a net 25 new stores (19 Topps and 6 Tile Clearing House) giving an overall
total of 196 trading stores (160 Topps and 36 Tile Clearing House). We
have re-fitted 22 outlets along with 14 Floorstores and 58 Tile Studios
which offer enhanced ranges of products on a special order basis and further
strengthens our position as the UK’s largest ceramic tile specialist.
Our strategy remains simple, to provide excellent value and service to
our customers, whilst delivering profitable growth for our shareholders.
Gross margin continued to improve and was up from 56.4%* to 57.5% and
has increased more than eight percentage points over the last six financial
periods. With an increasing mix of products being supplied through our
own warehouse, and the benefit of lower cost sources from outside the
EU feeding into the business, we believe gross margin should continue
to move forward.
In April the Group completed a deal to acquire a purpose built warehouse
facility in close proximity to the current facilities in Leicestershire.
This will be operationally available in early 2004 and will give the business
the additional warehousing and distribution capacity it requires to achieve
its stated store target of 250 ‘Topps’ and 100 ‘TCH’.
On 10 June 2002 the Group entered into a joint venture with a Dutch management
team. We now have a total of eight stores trading in Holland under the
50/50 joint venture including two new stores opened in the period. Tiles
have now been fully introduced into the wood flooring stores and wood
into our original tile only store in Sleidreicht. We are now seeing the
benefits of the long experience our Dutch co-investor has in the laminate
and wood market feeding through into Group margins.
The Tile Clearing House brand continues to perform well and complements
the proven ‘Topps’ format by appealing to small contractors
and bulk purchasers with its range of end of lines, discontinued ranges
and job lots. The two brands trade very well when located close to each
other as they create an area to buy tiles. The roll out of our core range
into the business and new IT systems has reduced stock days to 147 from
166 days at 28 September 2002 and we continue our efforts to improve efficiencies.
Operating costs in the period represented 42.3% of sales compared with
43.3%* for the same period last year and we continue to look at ways to
improve this further.
The retail tile market in the UK continues to grow and is estimated at
41.0 million square metres (Source: MSI) in 2003. Growth is forecast to
continue to reach 48.7 million square metres (Source: MSI) by 2006. The
reason for the sustained growth is driven by a number of different factors.
The areas where ceramic tiles are now used is growing as consumers add
shower rooms, conservatories, en-suite bathrooms and larger kitchens to
their homes. Consumers are also much more aware of health and hygiene
issues in the home and are replacing soft flooring products with easy
to clean ceramic floor tiles or wood and laminate flooring. The market
is also being driven by under floor heating systems which are more widely
used on the continent where use of ceramic floor tiles is up to six times
greater than in the UK. The extensive media coverage of home improvement
programmes continues to drive consumer interest and Topps are strengthening
their position as brand leader by sponsoring the UK Style channel on Sky
which features Changing Rooms and Ground Force amongst its shows.
'We are delighted that in the first seven weeks of the new financial year
like for like sales have shown an increase of 14.9% and overall sales
are up 25.2%. The outlook for the ceramic tile and wood flooring market
remains positive and as described is forecast to grow steadily over the
next three years. We are well on the way with our planned expansion for
2003/04 of 24 new stores for the year with 2 new stores already trading,
moving us towards our target of 350 outlets across the UK'.
Travis
Perkins acquires B&G (Plumbing & Heating) FOR £23.5m
Travis Perkins has acquired the entire issued capital of B&G (Plumbing
& Heating) Ltd ("B&G"). Consideration for the purchase
is £23.5m, payable in cash from existing resources, based on enterprise
value subject to final agreement of the net asset value at completion.
B&G has a network of 12 branches mainly in South London and Surrey
selling plumbing and heating products. For the year ended 31 August 2003,
it achieved a turnover of £38.3m and underlying operating profits
of £2.1m.
‘The acquisition of B&G will enhance our expanding network of
specialist plumbing and heating branches, increasing the total to 164,
while complementing the sale of plumbing and heating products from the
group's other merchant outlets.
‘The acqusition of B&G extends further our offering to the plumbing
and heating sector and is consistent with the established strategy of
investing in growth opportunities within our chosen areas of product specialisation.
We welcome the management of B&G to our group’
New
Public Sector Product Launch
Moores
have launched a number of new kitchen ranges and accessories into their
Public Sector product offering:-
Calypso Coral is a speckled white MFC thick lipped door. This range complements
the rest of the Calypso range. A contemporary door with a choice of eight
handle options.
Rio Blue and Jasmine both doors are contemporary pastel finishes with
thick aluminium effect square profile lipping.
Copland Pear is a modern PVC square profiled door.
Valente doors (illustrated) are PVC wrapped saponetta style offered in
the ever popular Apple and Pear Finishes.
To complement the new ranges a comprehensive range of kitchen accessories
have also been launched. They range from useful wirework solutions to
contemporary lighting options.
Please click below to view the new ranges or visit our Public Sector section
of the site for further details.
Spinning
a Great Story with Fagor …
Fagor
says that its new Innova range of electronic appliances incorporates a
host of advanced features designed to make their operation as easy and
pleasurable as possible.
Take the new ABS (Advanced Balance System) spin system. Before the spin
cycle, the clothes are often badly distributed inside the drum. This is
the reason why washing machines not equipped with ABS produce more noise
and excessive vibration during spinning.
However, the Fagor Advanced Balance System electronically distributes
the clothes uniformly inside the drum, adjusting to the exact quantity
of clothes – as opposed to other washing machines that operate using
theoretical load levels.Therefore the spin cycle does not start until
the load is correctly distributed.
As
a result, the vibrations produced by bad load distribution are completely
eliminated, resulting in a considerable reduction in noise levels during
the spin cycle.Even better, the absence of vibrations means that the appliance
will last considerably longer because it is under much less strain, and
repairs due to vibration damage are eliminated.
Tel: 0161 877 3533
Sanitec
Interim Financial Report January - September 2003
Third
quarter 2003 net sales of EUR 226.7 million were down against the same
quarter in 2002 by EUR 10.2 million or 4.3% in total. Excluding currency
exchange rate effects, 1.9% less sales were recognised.
EBITDA of EUR 33.6 million or 14.8% of net sales for the third quarter
is EUR 1.9 million or 5.3% lower than at the same time last year. Adjusted
for restructuring and integration consulting charges, the EBITDA margin
increased to 15.7% of net sales compared to 14.8% last year on a comparable
basis.
Operating profit for the third quarter decreased to EUR 12.2 million or
5.4% of net sales compared to EUR 13.2 million or 5.6% during the third
quarter of 2002.
Excluding restructuring and integration consulting charges, operating
profit increased to EUR 14.2 million or 6.3% of net sales for the quarter
compared to 5.3% last year.
Total capital expenditure was EUR 10.4 million or 4.6% of net sales for
the quarter. This represents an increase of EUR 0.6 million compared to
last year.
EUR 16.6 million in cash was generated and our net debt was reduced by
EUR 20.0 million in the third quarter of 2003.
Our revolving credit facility of EUR 50 million was undrawn and we were
in full compliance with our loan covenants.
Year to Date September 2003
September year to date net sales were EUR 713.8 million, which is EUR
31.7 million or 4.3% below the comparable nine-month period in 2002 in
total. Currency exchange rate effects account for EUR 18.9 million or
59.6% of the total variance.
EBITDA for the period was EUR 106.3 million or 14.9% of net sales compared
to EUR 109.0 million or 14.6% of net sales in the same period of 2002.
On a comparable basis excluding restructuring and integration consulting
charges, EBITDA increased to EUR 115.2 million or 16.1% of net sales compared
to EUR 110.5 million or 14.8% of net sales in the first nine months of
2002.
Operating profit for the nine-month period increased to EUR 40.9 million
or 5.7% of net sales compared to EUR 36.6 million or 4.9% of net sales
during the same period in 2002. On a like to like basis excluding restructuring
and integration consulting charges, operating profit increased to EUR
49.7 million or 7.0% of net sales which is a 30.8% improvement over the
same time last year.
Total capital expenditure was EUR 22.8 million or 3.2% of net sales for
the nine-month period of 2003 which is a decrease of EUR 26.8 million
or 54.0% compared to last year.
The net indebtedness was EUR 687.5 million excluding the shareholder and
PIK loans which is EUR 4.0 million or 0.6% lower than on September 30,
2002.
Web: http://www.sanitec.com
Hotpoint
Offers Christmas Savings
Hotpoint
is offering retailers a number of special deals this Christmas, promoting
a selection of Hotpoint Built-in products.
Offers include special prices on selected Hotpoint built-in double oven
packs, saving over £90.00 when retailers order one of four featured
double oven packs from their distributor.
Hotpoint is also offering 5 BF162 dishwashers for only £999, a huge
saving of £495.75. These fully integrated dishwashers offer an 'AA'
for energy and washing performance and feature the Fast Fix system which
enables the front decor panel to be fitted in minutes.
Hotpoint Advantage members can get even more with double points on double
ovens and £15 worth of drinks vouchers for any oven, hob and hood
and £5 for any additional built-in appliance ordered at the same
time. Non-Advantage dealers can also participate - with £10 vovchers
available for oven, hob and hood purchases.
With consumer demand for Hotpoint Built-in increasing through a national
press advertising campaign, retailers have the opportunity to make the
most of it claiming Hotpoint Advantage points. Hotpoint's Advantage Scheme
lets retailers earn Points every time they order Hotpoint Built-in appliances.
Hotpoint Advantage Points can be changed for absolutely anything, a holiday,
a new TV even a supplier invoice.
If you are not a Hotpoint Advantage member and would like to register,
please call the Hotpoint Advantage Hotline on: 01604 636 985.
*Not available in Northern Ireland.
John
Sydney Specified for QE II Conference Centre Refurbishment Project
London’s
premier conference venue, The Queen Elizabeth II Conference Centre in
Westminster, is currently undergoing major refurbishment. Navarre Interiors
is one of the contractors for the projects, working with MJS Architects.
The purpose built venue combines modern comfort with the very latest in
technology. As part of the refurbishment scheme, John Sydney, the Staffordshire
based, contemporary bathroom fittings company, has been specified to supply
brassware for the toilets around the building. The Elite, cross head design,
3 hole basin mixer in chrome, which is supplied with a ten year guarantee,
has been specified and fitted.
The entire John Sydney collection of bathroom fittings is guaranteed for
ten years and fully complies with WRAS guidelines. John Sydney bathroom
fittings are sold nationally for contract and domestic use via selective
bathroom dealers and specifiers.
Tel: 01827 304000
Web: http://www.johnsydney.com
Wolseley
AGM Statement shows 'Good Progress' in UK
Wolseley
plc, the specialist trade distributor of plumbing, heating and building
material products, held its Annual General Meeting on 21st November. At
the meeting, John Whybrow, Chairman, made the following comments to Shareholders:
'There has been no significant change in the market conditions affecting
the Group's businesses since the Preliminary results announcement for
the year ended 31st July 2003, issued on 23rd September 2003.
'Good progress continues to be made in the UK where the business environment
remains favourable. Continental European markets are still generally flat
but we would expect the group's businesses to outperform in local markets
and achieve a modest improvement in sales and profitability.
'In the USA, both the new housing and the repairs, maintenance and improvement
markets continue to be robust. Although we are not expecting an improvement
in the industrial and commercial sectors until the second half of 2004,
it is encouraging to see more positive economic growth data being reported.
In Canada the outlook remains positive.
'The group has made a good start to the new financial year and is in an
excellent position to take advantage of market or acquisition opportunities
as they arise.'
In accordance with normal practice, Wolseley plc will be issuing a more
detailed pre-close period trading update on 14th January 2004.
Creda
Launches New Freestanding Cooker Portfolio
Creda
has launched a new freestanding cooker range. lncorporating all Creda's
expertise and experience in the kitchen, combined with new up-to-the-minute
styling, the company says that this new range of electric and gas cookers
offers retailers a real sales edge.
'Holding
*22.6% market share in electric cooking, Creda is in a prime position
to launch this new cooker range. This new range is one of the most efficient
on the market, with AA rated 60cm double and BB rated 50cm ovens, ideal
for the environmentally conscious consumer.' comments Nigel Taylor, Freestanding
Cooking Product Manager at Creda.
Offering all of Creda's cooking technology, Creda has also updated its
looks on this new range with new controls, handles and door designs, while
also extending its colour offering with white, black and silver available
throughout the range.
Heading this new range is Creda's C363 EX Stainless Steel 60cm Double
Oven. Providing consumers with a four burner ceramic hob offering two
different sized cooking zones allowing for easy, simultaneous use of pans
on the hob. The Conventional Top Oven also incorporates a variable twin
grill, which. along with the Main Fan Oven, includes Creda's Clean Liners
- so after a night of cooking, the mess can be effortlessly wiped away.
Creda also offers the C462 E 60cm Solarplus Double Oven. This model has
in grill technology with its Solarplus Grill, which heats up in just 15
seconds, and which the company claims saves typically 20% of the energy
used by a conventional grill. The ceramic 4 burner hob offers Creda's
Solarglo technology, providing faster, more responsive heat than radiant
and has a comparable heat perfonnonce to halogen elements.
Nigel Taylor concludes: 'We felt this was the ideal time to introduce
the next stage to Creda's freestanding cooker portfolio. Belng in such
a strong market position, its important for the brand to maintain and
grow. We are confident this new range of excellent features and revitalised
styling will give retailers serious selling power for consumers looking
for trusted cooking expertise combined with strong styling.'
Tel: 08709 050 050
Web: http://www.creda.co.uk
*Source: GFK Marketing Services Feb 03
Wave
- A 21st Century Revolution
'A
great leap forward has been made in the world of tile design and technology,
with a revolutionary new surface material, exclusively discovered for
the discerning UK market by The Stone & Ceramic
Warehouse.' says the company.
Fresh from Italy, Wave is a material in harmony with nature. It is formed
from small natural stones mounted in a flexible mesh base that adapts
itself perfectly to the ebb and flow of any surface regardless of contours
and angles.
In the most intimate areas, the use of soft coloured stones in Wave can
effect a bichromatic colourplay, setting its gems in a carpet of waves.
The elegance of Wave is enhanced by its rapport with so many different
shapes.
The technical and functional flexibility of Wave means it is suitable
as a covering for all kinds of surfaces: floors or walls; interior or
exterior; flat or curved; concave or convex.
Wave is available in 30cm x 30xm sheets and prices start at £258
per m2.
Tel: 0208 993 5545
Email: mailto:gen@stoneandceramicwarehouse.co.uk
Web: http://www.stoneandceramicwarehouse.co.uk
American
Standard Announces Departure of Global Bath and Kitchen President
American Standard Companies Inc. has announced that Marc Olivié,
president of Global Bath and Kitchen, will leave the company during the
first quarter of next year to pursue other interests. The company plans
to name a new leader prior to his departure, and Olivié will continue
to lead the business until his successor is in place.
"Since Marc joined the company in May 2001, under his leadership,
the Bath and Kitchen team has improved the business' global organization
and cost structure, strengthened its focus on customers and marketing,
and successfully introduced many significant products," said Fred
Poses, chairman and CEO. "Bath and Kitchen is well-positioned to
achieve its previously announced margin targets of 8 percent in the fourth
quarter and 9 percent in 2004."
American Standard is a global manufacturer with market leading positions
in three businesses: air conditioning systems and services, sold under
the Trane® and American Standard® brands for commercial, institutional
and residential buildings; bath and kitchen products, sold under such
brands as American Standard® and Ideal Standard®; and vehicle
control systems, including electronic braking and air suspension systems,
sold under the WABCO® name to the world's leading manufacturers of
heavy-duty trucks, buses, SUVs and luxury cars. The company employs approximately
60,000 people and has manufacturing operations in 29 countries.
Maytag
Highlights 2004 Growth Strategies at Analysts' Conference
Maytag Corporation has unveiled plans to change its segment reporting
beginning in the first quarter 2004, from two segments to three as the
company aligns its internal reporting to reflect new initiatives and accountabilities
within the company. In addition, the new segment reporting structure should
provide investors with enhanced clarity and consistent financial information.
Chairman and CEO Ralph F. Hake made the announcement during a conference
with financial analysts in New York City. Also during the conference,
Hake described the company's plans for 2004 and said he expects earnings
per share for next year to be in the range of $1.90 to $2.00 per share,
including approximately 40 cents in charges from restructuring. For the
first quarter 2004, the company expects earnings per share in the range
of 42 to 47 cents a share, which includes 8 cents in charges from restructuring.
Starting with its first quarter earnings announcement in April 2004, the
corporation will disclose sales and operating margin for three business
segments -- Major Appliances (which includes Maytag Appliances, Maytag
International and Maytag Services), Housewares (which includes Hoover
Floor Care and Maytag Housewares) and Commercial Products (which includes
Dixie- Narco Vending Systems, Maytag Specialty and Maytag Commercial Laundry).
Currently, Maytag reports just two segments, Home Appliances and Commercial
Appliances.
"We believe these changes more accurately reflect our new initiatives
and accountabilities within the company in 2004," Hake said. "The
change will help our investors better understand, estimate and evaluate
the way our business segments align with their markets and customers."
Hake also revealed how the corporation's estimates of 2003 full-year sales
expectations would break down into the three new segments: Major Appliances,
$3.6 billion; Housewares, $780 million; and Commercial Products, $390
million. Talking further about the current year, Hake affirmed the company's
2003 expectations for earnings (including approximately 53 cents from
restructuring and discontinued operations) to be in the range of $1.62
to $1.67 per share.
"We are coming out of 2003 a stronger company both financially and
operationally," Hake said. "Certainly 2003 can be best described
as challenging. However, Maytag made great strides in cost containment
this year, and we are beginning to reap the benefits of the tough decisions
we had to make for the good of the company. Our cash flow is strong, we
are reducing our debt, and we successfully launched many innovative new
products."
This past year, Maytag introduced the category-defining Neptune(R) Drying
Center(TM) and extended the Neptune washer to a top-load configuration.
Maytag also launched new cooking products and it further diversified into
distinctive products such as the SkyBox(TM) home vendor, the Jenn-Air
Attrezzi(TM) line of kitchen appliances and, at Hoover, the SpinSweep(TM)
outdoor sweeper.
"Innovation drives growth, and Maytag is well positioned to grow
in major appliances," Hake said. "We continue to see improvement
in major appliances, and after a difficult year at Hoover, we are seeing
marked improvement there as that business continues to stabilize. The
challenges at Hoover remain, but we have aggressively addressed the fixed
cost structure there, and we are encouraged by the array of products that
Hoover is preparing for launch next year."
George Moore, Maytag's executive vice president and chief financial officer,
reflected on this year's financial performance. "We expect our strong
cash flow generation in 2003 to allow us to reduce debt by $100 million.
In addition, we made a $135 million voluntary contribution to our pension
fund, which has helped reduce our under funded position by $65 million
from the prior year," Moore said. Adding that he anticipates some
pressure next year from higher pension and post-retirement medical expenses,
Moore said ongoing cost-saving initiatives and a strong line-up of product
introductions should enable Maytag to meet these challenges.
Hake also discussed industry trends at the conference. In major appliances,
industry shipments for 2003 are expected to increase 3 percent, and grow
another 1 to 2 percent next year. Driven by a stream of new products and
vigorous brand-building activities, Maytag expects to exceed the industry
growth rate again in 2004. In floor care, industry unit shipments are
expected to end 2003 flat or up slightly. Next year, Hoover expects industry
shipments to grow 2 to 3 percent.
Other Maytag executives appeared at the conference to discuss the company's
operations, including William Beer, president of Maytag Appliances; Tom
Briatico, president of Hoover Floor Care; Doug Huffer, president of Dixie-
Narco Vending Systems; R. Craig Breese, president of Maytag International;
Steve Benton, vice president and general manager of Maytag Services; Ken
Boyle, vice president of strategic initiatives; Craig Ibsen, vice president
and general manager of Maytag Specialty group; and Chris Wignall, senior
vice president of marketing and sales, Maytag Appliances.
Maytag's investment community conference was webcast over the Internet.
A replay of the conference will remain available online through Nov. 25
on the Corporate News Center of Maytag's Web site, www.maytagcorp.com,
under "CEO Presentations".
Maytag Corporation is a leading producer of home and commercial appliances.
Its products are sold to customers throughout North America and in international
markets. The corporation's principal brands include Maytag, Amana, Jenn-Air,
Jade, Hoover and Dixie-Narco.
This
year kitchen buyers will be cheered by a free Christmas hamper worth over
£200 when they order from In-toto before Christmas. It may be too
late to have your kitchen fitted in time for the big day, but order now
and enjoy a quality hamper full of seasonal goodies.
http://www.intoto.co.uk/