CLICK HERE FOR NEWS ARCHIVE

Maytag Acquisition: Whirlpool Raises Offer to $18 and Enters Confidentiality Agreement

Following Maytag's rejection of the Whirlpool offer last Friday morning, on the grounds that it would not add value to the offer already on the table from Ripplewood-Triton, Whirlpool offered the following statement:

'Whirlpool Corporation is disappointed that Maytag’s Board of Directors on Thursday was unable to reach a satisfactory conclusion with regard to its proposal.  Our proposal clearly provides superior value to Maytag’s shareholders, and we are confident it will receive regulatory approval.  We have offered to present our case to the Maytag board and its advisors, and we urge them to act immediately so that we may begin the due diligence process and discussions to reach a definitive agreement.  We are evaluating all of our various options, and are prepared to pursue them in an expeditious manner'.

This was followed - later on Friday - by Whirlpool upping the offer from $17 to $18 per share, with the following, rather acidic statement:

'By delaying a prompt response and failing to recognize the clearly superior value of our July 17 proposal, the Maytag Board of Directors has jeopardized this important opportunity for consumers, trade customers and shareholders of both Maytag and Whirlpool,' said Jeff M. Fettig, Whirlpool’s chairman, president and CEO (pictured right).  'This amended proposal includes additional terms that we believe should fully address any concerns of the Maytag Directors. The amended proposal of $18 per Maytag share is a 29 percent premium to Maytag shareholders compared to the Triton offer. '

It took two days for Maytag to respond, again issuing a statement on a Sunday (another July hog roast missed by Maytag execs!):

Maytag's Board of Directors has determined that Whirlpool Corporation's revised proposal, announced on July 22, may reasonably be expected to lead to a transaction that is financially superior to Maytag's pending transaction with the Ripplewood-led Triton Acquisition group and that is reasonably capable of being completed. Under Maytag's existing merger agreement with Triton Acquisition, this determination is a prerequisite for Maytag to furnish information to, and have discussions and negotiations with, Whirlpool.

Maytag stated that, in reaching its determination, the Board took into account Whirlpool's representation as to a complete lack of opposition to the transaction from the top 20 trade customers and buying groups, including the top four retailers and top three buying groups that represent 90% of retail appliance sales.

Maytag said that it expects that the terms of a definitive agreement, if any, with Whirlpool will take into account the risks to Maytag of non-consummation, Whirlpool's assertion that the antitrust clearance process can be completed by the end of 2005, and Whirlpool's overwhelming confidence that there is no antitrust problem in a Maytag/Whirlpool combination. For example, Whirlpool has publicly stated that the transaction poses 'no risk to competition,' that it is 'not motivated by, nor could it produce, anticompetitive effects,' and that 'there is no plausible concern that competition would diminish in any product category.'

Maytag also said that its Board of Directors has not changed its recommendation of the existing Maytag/Triton Acquisition transaction. Notwithstanding the determination that the Whirlpool proposal may reasonably be expected to lead to a financially superior transaction that is reasonably capable of being completed, Maytag noted that the Whirlpool proposal is, among other things, uncertain as to the timing of completion, the form of consideration and the valuation of any stock consideration, Whirlpool's due diligence process, and the mechanisms referred to by Whirlpool to address regulatory and other closing risks.

Maytag noted that before it would be willing to share competitively sensitive information it would require greater certainty with respect to these and other issues. In contrast, the Triton Acquisition transaction is expected to close within a month and, subject to shareholder approval and completion of financing, has already satisfied the major conditions to closing.

Whirlpool further announced on Wednesday that it has entered into a mutual confidentiality agreement with Maytag Corporation.  The agreement allows Whirlpool to immediately commence the due diligence phase of its proposed acquisition of Maytag.  Whirlpool expects to make no further comment at this time.

Maytag Corporation is a $4.7 billion home and commercial appliance company focused in North America and in targeted international markets. The corporation's primary brands are Maytag(R), Hoover(R), Jenn-Air(R), Amana(R), Dixie-Narco(R) and Jade(R).

Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales of over $13 billion, 68,000 employees, and nearly 50 manufacturing and technology research centers around the globe. The company markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul and other major brand names to consumers in more than 170 countries.

Charity Sponsored Cycle Ride- In Aid of Local Children's Hospice

On Sunday September 18th 2005, the staff from Crabtree Kitchens will be cycling the Swans Way and Icknield Way trails in an effort to raise funds for the Shooting Star Trust.

'The 65km fundraising ride will kick off at Goring where we will join the Swans Way Bridle route.' explains the company. 'At Bledlow we will join the Icknield Way Trail as it weaves its way through the Chilterns. This ancient trade route passes through Princes Risborough and Wendover before reaching our finish line at Tring.

'Our target is to raise £3000 for this worthy cause - which exists to help children not expected to live beyond adulthood, and we would love your support. Please sponsor a Crabtree Kitchens cyclist and help enhance the quality of life of a terminally ill child and their family. This charity receives no government support at all and relies on people like us for funding!'

To make a contribution please contact Alex Crabtree, Crabtree Kitchens at
020 8392 6955 or email malto:design@crabtreekitchens.co.uk

'We look forward to you supporting us!' says Alex.

OFT Campaign to Promote Consumer Codes Approval Scheme

The OFT will launch a national campaign to promote the benefits to consumers of its Consumer Codes Approval Scheme, and raise awareness of the OFT approved code logo – a key element of the scheme. The campaign will begin in early October.

Code sponsors – organisations such as trade associations - must meet rigorous standards of proof that their code promotes consumer interests effectively before the OFT will approve it. Businesses that have agreed to comply with an OFT approved consumer code of practice are entitled to display the OFT approved code logo. Where a business displays this logo, consumers have the confidence of knowing they will be dealing with a trader that has undertaken to treat them fairly if problems arise, and deliver customer service standards that go beyond minimum legal requirements.

To secure OFT approval for its consumer code of practice, a code sponsor has to complete a two-stage process. Code sponsors that have obtained OFT approval for their codes are: the Society of Motor Manufacturers and Traders (SMMT); the Vehicle Builders and Repairers Association (VBRA) and the Direct Selling Association (DSA). Those that have completed stage one of the process and are working towards approval are: the Ombudsman for Estate Agents Company Ltd (OEA); the Association of British Travel Agents (ABTA); MVRA Ltd (formerly the Motor Vehicle Repairers Association) and the Debt Managers Standards Association (DEMSA).

Penny Boys, OFT Executive Director, says:
'The OFT consumer codes approval scheme is a rigorous scheme, demanding a high degree of commitment from code sponsors and participants. The launch in October will develop further a strong brand for the scheme. Consumers will know, when they see the OFT approved code logo, that the trader has agreed to comply with high standards of customer service. This will help consumers make informed choices in the marketplace, and give fair-dealing businesses a competitive advantage.'

Whirlpool Second-Quarter Results Reflect Progress in Mitigating Higher Material Costs

Whirlpool Corporation announced on 21st July second-quarter 2005 net earnings of $96m, or $1.42 per diluted share, compared to $106m, or $1.53 per diluted share, in the same period last year. The decline was driven by significantly higher material and oil-related costs. Net sales of $3.6bn were a second-quarter record and increased 9% from last year.  Excluding currency translations, net sales increased by approximately 5%.

'We are pleased with our global operating performance given the significant magnitude of the material cost increases in the second quarter and throughout the first half of the year,' said Jeff M. Fettig, Whirlpool’s chairman, president and chief executive officer. 'The success of the actions we have been taking to adjust to the global cost environment has positioned us well for the balance of the year.'

The company’s second-quarter results reflect approximately $180 million of higher material and oil-related costs, as well as unfavourable currency, and higher restructuring expense compared to the same period last year. These costs were mitigated through a combination of factors, including price increases, mix improvement, productivity and cost-control initiatives, as well as a lower effective tax rate.

Cash used in operating activities for the first half was $109 million compared to cash provided of $82 million last year, primarily due to higher planned working capital. Cash flow was also impacted by planned increases in capital investments in the company’s global operating platform and innovation to support future growth.

For the first half of 2005, record sales of $6.8 billion increased 8 percent from the prior-year period.  Excluding currency translations, sales increased approximately 5 percent. Year-to-date earnings of $182 million were significantly impacted by material and oil-related costs of approximately $370 million and declined 12 percent from the first half of 2004.

Fettig added: 'We expect positive year-over-year earnings momentum to increase during the remainder of the year as our combined ongoing actions continue to build and overcome the material cost increases.'
 
Recent Milestones
* Whirlpool Corporation has been named to the '2005 List of Top 20 U.S. Companies for Leaders,' making this the second consecutive year the company has been acknowledged for its focus on developing leaders within the company. Sponsored by global human resources services firm Hewitt Associates and The Human Resource Planning Society (HRPS), the 'Top 20 Companies for Leaders' were selected by an independent panel of judges.

* Whirlpool Corporation has been named one of '25 Noteworthy Companies for Diversity' by DiversityInc magazine. The company was recognised for its excellent community philanthropy, employee-resource groups and measurement of diversity success.

* Whirlpool was the premier sponsor of the 2005 Jimmy Carter Work Project (JCWP), an annual initiative to build homes for families in need and raise awareness of the critical shortage of affordable housing. During the week of June 19th, 238 homes in Michigan and Canada were built by JCWP volunteers, which included more than 300 Whirlpool employees from the company’s operations around the world.  Whirlpool also directly sponsored the construction of 10 homes during the JCWP, which is associated with Habitat for Humanity International.

* Whirlpool Corporation received an Industrial Design Excellence Award (IDEA) from the Industrial Designers Society of America (IDSA).  The prestigious award was in recognition of the Whirlpool brand Fabric Freshener, a portable appliance that releases odours and relaxes wrinkles from fabrics in about 30 minutes. The product also was awarded a special innovation prize at the annual French trade fair, la Foire de Paris.

* For the second consecutive year, the Great Place to Work Institute named Whirlpool’s Brazilian subsidiary, Multibrás, as one of the '100 Best Companies to work for in Latin America.'

New Innovations
* The Whirlpool® Velos™ g2Convect appliance allows consumers to grill, bake, broil and steam like a traditional oven but with the speed of a microwave. The large capacity microwave hood combines a new convection cooking capability and the company’s g2max™ speedcook technology.

* Whirlpool brand introduced the Fast Fill™ water dispensing system, which gives consumers the ability to fill any size cup, glass or container with chilled water twice as fast as previous dispensers. The system is the first to have a measured fill feature and a 180-degree rotating faucet.

* KitchenAid introduced a new version of its top-rated Dual Fuel Range to include steam-assist technology – a cooking feature used by professional chefs. This range is the first full-size, freestanding model to offer steam technology in the U.S. and requires no special plumbing or remodeling for installation.

* Gladiator™ GarageWorks by Whirlpool Corporation expanded its suite of organisational products for the garage with the introduction of the Gladiator Cadet(TM) series.  The suite of floor cabinets, project centers, and work benches complement the brand’s more featured products and extends the distribution of Gladiator products to a broader base of consumers.

* Brastemp brand introduced Brastemp Colors, a new line of refrigerators with colours that appeal to the growing number of Brazilian consumers interested in both functional and design innovation.

Whirlpool Europe sales of $770 million increased 9 percent from the prior-year period, representing a record second quarter. Excluding currency translations, sales increased approximately 4 percent.  Strong volume gains and the strength of Whirlpool brand performance drove the improved results. The sales improvements were achieved despite an estimated decline in industry unit shipments of approximately 3 percent.

Operating profit improved 4 percent as higher raw material costs were offset by strong brand and product mix, productivity improvements, lower general and administrative expense, and price increases.

Based on current economic conditions, the company expects full-year industry unit shipments in 2005 to be flat to down 1 percent.

Outlook
'Our focused action plans to mitigate higher material and oil-related costs are on track and are being effectively executed,' said Fettig. 'Given that oil prices remain volatile, we expect full-year material and oil-related cost increases closer to the higher end of our previous guidance of $500-to-$550 million, much of which has been absorbed in our first-half results.'

He added: 'Given this challenging environment, we expect that our global operations will continue to benefit from innovation, strong mix, execution of previously announced price increases, higher levels of controllable productivity, reductions in non-product related spending and the acceleration of new product introductions. Based on our assessment of the current environment, we continue to expect full-year earnings-per-share of $5.90-to-$6.10, and free cash flow to be in the $250-to-$300 million range.'

Maytag Shows Corner has Been Turned with Q2 Results

Maytag Corporation reported on 22nd July second quarter consolidated sales of $1.23bn, up 6.7% from sales of $1.15bn in the same period last year. Reported net income for the second quarter was $3.5m or 4 cents per share, compared with a net loss of $41.1m, or 52 cents per share, a year earlier.

Diluted earnings per share for the second quarter included the following:

Second quarter sales were up year-over-year in all major categories of the home appliances segment - refrigeration, laundry, cooking, dishwashing and floor care. Sales of Commercial Products declined versus a year ago, a result of continued weakness in the vending industry.

Maytag Chairman and CEO Ralph Hake said that sales of major appliances showed solid improvement during the quarter with refrigeration and cooking product sales up appreciably. 'Sales of our French-Door bottom-freezers under the Jenn-Air, Maytag and Amana brand names are strong. In cooking, all Jenn- Air products, including cook tops and wall ovens generated positive gains for the company. Also, Jenn-Air stainless steel dishwashers and Maytag's new Neptune front-load washers have generated encouraging consumer interest this quarter.'

Hake noted that all floor care categories sold under the Hoover brand experienced significant year-over-year growth with market share gains in upright vacuums as the primary sales driver.

Maytag Services and Maytag International continued to produce strong revenue growth compared to the second quarter of 2004.

'Compared to last year, operations benefited from sales growth, a positive mix in major appliances, and savings from our 'One Company' restructuring and the Galesburg plant closing,' said Hake. 'However, these improvements were offset by rising raw material costs including steel and resins, higher fuel and transportation costs and lower floor care pricing.'

Sales were up sequentially from the first quarter of 2005, benefiting from refrigeration sales beyond normal seasonal increases. Operating income was down sequentially from the first quarter of 2005, due to planned national advertising expenditure increases, which more than offset the benefit from increased sales.

During the quarter, the company signed a commitment letter for a $500 million five-year, senior secured revolving credit facility. The new credit facility would be fully underwritten by J.P. Morgan Chase Bank, N.A. and Citigroup Global Markets, Inc. and secured by accounts receivable and inventory of certain Maytag subsidiaries. The company also announced that it has amended its current $300 million revolving credit facility, due March 2007. The current $300 million credit facility would be replaced upon the issuance of the $500 million credit facility.

Six-Month Performance
Maytag's sales in the first six months of 2005 were $2.40 billion, up one percent from sales of $2.37 billion in the first six months of 2004. Operating income was $43.8 million, up from $30.2 million reported in the year-earlier period.

Reported net income for the first six months of 2005 was $11.2 million, or 14 cents per share. In the first six months of 2004, Maytag reported a net loss of $2.4 million, or 3 cents per share.

For the first six months of 2005, cash flow used by operations was $47.4 million, approximately the same as the first six months of 2004. The use of cash flow in both periods is due primarily to seasonal increases in working capital. Cash flow was also impacted by lower pension contributions in the first half of 2005 compared to the same period in 2004. As of the end of the second quarter, cash and cash equivalents increased by $61.5 million to $69 million, compared to the same period in the prior year, and total debt levels declined by $118 million to $977 million.

The earnings (loss) per share for the first six months of 2005 and 2004 included the following items:

Maytag reaffirmed that its earnings per share estimate for the full year 2005 are expected to be in the range of 45 to 55 cents, including approximately 10 cents in restructuring charges.

Wanted! Appliances for the Home of 2020

For the third straight year, Electrolux invites students from around the world to compete to design household appliances for the future. This year, Electrolux Design Laboratory is looking for solutions for the home of 2020.

How will we live in 2020? University students from around the world are invited to compete for cash-awards and high-end workshops in Stockholm in November. Electrolux is looking for product ideas around:

• Cleaning clothes
• Cleaning dishes
• Cleaning floors
• Storing drinks
• Storing food
• Cooking

The products need to be relevant for the year 2020. The jury will judge entries based on design and innovation in terms of both functional and technological aspects, but with focus on solving real problems in everyday life.

This year’s competition will be run jointly with the Internet site designboom.com and is open to all students of design from all nations.

'The Electrolux Design Laboratory competition is an opportunity for both students and our own designers to gain positive influences outside their ordinary tasks,' says Henrik Otto, Senior Vice President of global design at Electrolux.
A jury will select 12 finalists to participate in a six-day design event in Stockholm, including workshops, model building and a competition for cash-awards, appliances and more.

The winner will be announced during Future Design Days in Stockholm, November 14th, 2005.

For information on 2003 and 2004 awards: http://www.electrolux.com/designlab
To register log on to: http://www.designboom.com
Other links: http://www.futuredesigndays.com

Tile Mark Launched to Help Buyers

'Buying tiles - look for the Tile Mark it’s your assurance that the tiles are good quality and made to a recognised standard.' says The Tile Association, which has launched Tile Mark, a new initiative to help tile customers buy the best from the best. If you choose good quality tiles they can last a lifetime – far outperforming other products in cost over their lifetime. Be sure you buy the best and look for the Tile Mark'.

Tile Mark has only just been launched but already the following members have become Tile Mark retail showrooms and will be displaying Tile Mark sticker on their tiles.

Reed Harris, London
Tiles UK, Manchester
Albert & Michael Heath, Coventry
N&C Nicobond, Chadwell Heath
The Tile Warehouse, Nottingham
Craven Dunhill, Bridgenorth
Profile Contract Interiors Ltd, Warrington
Shackerley Group, Chorley
Tile Trend Ltd, Worcester
Tile Centre (Trowbridge) Ltd, Trowbridge
Miles of Tiles Ltd, Royal Leamington Spa Spa
Rogers Ceramics, Crawley
Tile Magic, Northfleet
Yorkshire Tile Company Ltd, Sheffield
Discount Tiles Supplies, Gravesend
Sussex Wall & Floor Tiling, Hove
East Midland Ceramics Ltd, Nottingham
Cerface Ltd,. Gillingham

'To begin with Tile Mark will focus on tiles that have been made to a recognised standard. In the UK, this means BS EN 14411 and for imported products the CE Mark. Because Tile Mark can only be used by TTA members we can be sure that tiles with a Tile Mark are really made to a Standard and TTA will police the scheme through its membership.'

For more information visit the TTA website at http://www.tiles.org.uk or telephone The Tile Association on 020 8663 0946

Planit Profits Hold up Well Despite Weak Dollar

Planit Holdings plc, the global provider of computer aided design and manufacturing software has enjoyed another successful year (to April 2005), despite the adverse effect of the weak dollar, with group revenues increasing by £1.2m and operating profit before goodwill amortisation by £388,000. Net debt was reduced from £5.9m to £4.2m.

Highlights
* Turnover increased by 4% to £28.1m compared with the previous year (2004 £26.9m)
* Operating profit before goodwill amortisation increased to £3.8m compared with the previous year of £3.4m
* Operating profit increased to £2.5m compared with the previous year of £2.0m.
* Net debt decreased to £4.2m (2004 £5.9m)

Chairman's and Chief Executive's Statement
We are pleased to be able to report that the Planit group has enjoyed another successful year, despite the adverse effect of the weak dollar, with group revenues increasing by £1.2m and operating profit before goodwill amortisation by £388,000. Net debt was reduced from £5.9m to £4.2m.

Our US markets continue to be buoyant and the business has grown in profitablility. Increased investment in R&D has seen the enhancement of our existing products, thereby ensuring our continued strength in the market. The release of new products has further enhanced our existing product portfolio and strengthened our platform for future growth.

The main points in respect of this year's trading with preceding year
comparatives are:

Sales £28.1m (2004 £26.9m)
Gross profit £23.4m (2004 £22.1m)
Operating profit before goodwill amortisation £3.8m (2004 £3.4m)
Profit on ordinary activities before tax £1.97m (2004 £1.55m)
Net debt £4.2m (2004 £5.9m)
Earnings per share 1.4p (2004 1.0p)
Dividend per share 0.50p per 10p ordinary share (2004 0.45p)

Review
The Planit group's revenues are built on providing world class software for design and manufacturing (CAD CAM) and by providing end to end solutions, working from manufacture through to the point of sale. Our target markets encompass the cabinet, retailing, manufacturing, woodworking and engineering industries.

During the year we adopted the Planit name as the umbrella brand for all the group products across its 35,000 strong user base and have increased our marketing activity, placing greater emphasis on corporate identity guidelines and increased focus on segmentation, targeting and positioning.

Planit Engineering
Our strategy to update our AlphaCAM product range so as to be able to compete in the engineering market continues to increase our market share in this sector. Engineering sales in the UK and the Far East have grown strongly and further improvements to the products, due to be released later in the year, should allow us to build on this success.

Radan, our sheet metal bending and punching software (used by AGA-Rayburn, for example), has maintained its dominant share of the UK market and is now concentrating on growing its US and European sales. Development has been focused on providing our users with increased automation of their manufacturing, driven by the demand from European companies to increase their productivity. Following the year end, our small acquisition of Radan CFAO, our French distributor of Radan software, will provide a good base for the launch of the enhanced products into the European market.

Planit Woodworking
AlphaCAM's computer aided manufacturing software for the wood working industries continued to grow market share. Its European distribution channel, buoyed up by the product improvements resulting from the changes made to it for the engineering markets, increased its sales and profitability.

The strategy of maintaining strong relationships with the machine tool
manufacturers combined with the ability to provide local service internationally through our subsidiaries and distribution network has enabled us to continue to dominate this market. Our U.S. operation based in Charlotte has again performed well increasing sales by 79% to #1.2m despite the weakness of the dollar.

Planit Stone
Our new stone and marble product, an AlphaCAM derivative, was introduced into this niche market during 2004/05. Partnerships and agreements have been made with the major Italian marble cutting machine tool manufacturers which should result in additional revenues as the suppliers of marble automate and adopt the new technologies. This market is in its infancy with participants making the transition from traditional stonemasonry to the latest CNC technology and once we have gained experience from the Italian market the strategy is to launch Planit Stone globally.

Planit Cabinet Making
Both the Cabinet Vision and Cabnetware products continue to grow strongly in the U.S. The Cabinet Vision and Cabnetware brands dominate this market and are becoming the de-facto standard software for use by cabinet makers. The market trend towards CNC (Automation) manufacturing continues and with only 12% of the market having upgraded to CNC, Planit with its large user base is well placed to become the dominant provider of CNC solutions for the cabinet making market. In the UK our Cabinetmaking module has now been integrated with AlphaCAM and is being sold alongside the 'know how' product range which includes stair, door and window making software.

Planit Retail Design
Planit's point of sale interior design software is recognised as the most
powerful design sales and costing system for use by retailers and manufacturers of kitchens bathrooms and bedrooms. Whilst a mature market, demand continues to grow with revenues split equally between new and existing users. The ongoing requirement for manufacturers' product libraries drives additional revenues from manufacturers and retailers as well as ensuring a high retention of software support contracts. During the year increased focus on the sale of training courses, together with extending these to include implementation onto the sales floor as well as learning how to use the product, has seen a significant increase in training revenues.

Despite continuing poor economic conditions in Europe we have maintained saleslevels and achieved our targets. Our French subsidiary, Planit France, had another successful year and increased sales again. To further build on Planit France's success and its strong management team it is our intent to use it as conduit to sell some of the group's other wood working products into the French market. Sales into the U.S., whilst small in relative terms, continue to improve. Our investment earlier in the year in the development of additional manufacturers' libraries and the migration of U.K. processes for developing them is now paying dividends.

Business Management
Jobshop is a flexible, scalable and intelligent business manufacturing system designed to optimise resources, manage costs and deliver key information for strategic and tactical decision making. In November 2004 a new Managing Director was appointed, with the clear brief to bring the company in line with Planit's operating models and to return the business to profitability. At the year end a cumulative profit position was achieved with a stable workforce and a number of key processes in place to provide a regular stream of business to capitalise on the mix of product and service sales revenue opportunities. Looking ahead the business model is sound with a plan to augment direct sales revenue with a channel strategy utilising the existing network of subsidiaries and distributors already present within the group.

Employees
Our thanks and appreciation is offered to our employees for their dedication and teamwork in ensuring such a successful year.

Current trading - future prospects
The Planit group continues to grow and trade in line with management's
expectations. Our focus to grow our sales in the engineering sector and
increase the revenues created from our installed base is providing good organic growth. The group's future strategy continues to be that of growing sales and profits organically and making complementary acquisitions.

Wolseley Announces Pre-Close Period Trading Statement

Wolseley plc, the world's largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials, issues its regular trading statement for the 11 months to 30th June 2005, prior to entering its close period. It also announces details of a further eight acquisitions for an estimated combined consideration of approximately £171 million and restates its first half results for the six months to 31st January2005 in accordance with International Financial Reporting Standards ('IFRS'). The preliminary results for the 12 months ending 31st July 2005 are due to be announced on 26th September 2005.

Business conditions in the Group's principal markets have been broadly in line with comments made in the Interim Results statement on 21st March 2005. As expected, the rate of growth in the second half of 2005 has been slower than in the first half due to the strong comparators in the second half of 2004, the absence of commodity price gains in products such as copper, steel, plastics and lumber and a slowing in the UK market. During the second half, investments in human resources, logistics and new branches have been accelerated to position the Group for continued growth.

The Group's results for the first 11 months to 30th June 2005 show a strong increase in sales and profits driven by high rates of organic growth in North America and good growth in the UK, albeit at a slower rate in recent months. The markets in Continental Europe continue to be broadly flat, although all of the Group's businesses showed sales growth. The Group's trading margin for the period is also ahead of the equivalent period in the prior year.

After currency translation and including the effect of acquisitions, Group sales for the 11 months to 30th June 2005 were up by more than 10% and trading profit up by more than 15% on the same period in 2004. The adverse currency translation effect was approximately £292 million on sales and £18 million on trading profit, broadly representing an additional 3% on the reported sterling figures.

North American Plumbing and Heating Distribution
In the US, housing related activity has been strong, with the repairs and remodelling market benefiting from the more positive economic environment. The commercial and industrial sectors continue to improve.

The US plumbing operations performed strongly with sales in local currency for the 11 months to 30th June 2005 up by 20%, and trading profit up by 25% on the equivalent period in the prior year. More than half of the sales growth was organic, including the beneficial effects of commodity price inflation in products such as copper, steel and plastics in the first half. This follows approximately $30 million of additional trading profit attributed to commodity price increases in the second half of 2004 which has not been repeated in the second half of 2005. For the 11 month period, the net margin remains up on the comparable period in the prior year. This is despite the lower benefit from commodity price inflation and reflects the decision to increase the investment in people, logistics and new branch openings in the second half of the year.

Ferguson's market outperformance continues to be driven by the commercial advantage gained from its distribution centre network and from management's focus on achieving organic growth in selective markets. The latest distribution centre in Iowa opened in May 2005 and the rollout of the XpressNet stores continues with the 60th store expected to open before the end of July 2005. To support this continued growth, Ferguson has added an additional 3,300 employees since 1st August 2004, including approximately 850 new college graduates.


European Distribution
In European Distribution, sales and trading profit in the 11 months to 30th June 2005 in sterling were both up by around 10% compared to the same period in the prior year, with the trading margin improving slightly.

Wolseley UK has continued to outperform a slowing UK market with sales and trading profit both showing double-digit increases for the 11 months to 30th June 2005. More than 5% of the sales growth was organic. The commercial sector, including government spending, continues to show a positive trend. The trading margin was negatively impacted by the higher pension, rebranding and restructuring costs that were announced previously. Property gains of around £10million have been realised in the 11 months to 30th June 2005.

In France, government tax incentives underpin growth in the new residential market, but repairs, maintenance and improvement ('RMI'), the principal driver of both Brossette and PBM, continues to show only marginal growth. Brossette's results continue to reflect the disruption caused by its reorganisation of the branch and management structure and distribution network. For the 11 months to 30th June 2005 sales were up only slightly compared to the similar period in the prior year, whilst profits were down. PBM performed in line with expectations with local currency sales up more than 3% and the trading margin improving.

In the rest of Continental Europe there was a mixed picture with all of the Group's businesses showing sales growth, despite most markets remaining broadly flat.

During the period the decision was taken to invest Euro20 million in a new central distribution centre in northern Italy to support the growing business there, following the acquisition of Iser Zauli in January 2005. Work is also progressing on Wolseley UK's new national distribution centre in Leamington Spa. These facilities are expected to be completed around autumn 2006.

Outlook
Market conditions in North America are expected to remain strong for the foreseeable future. Although the market in the UK has slowed in recent months, the Group expects its UK business to continue to show modest growth. In Continental Europe the Group's principal markets are likely to remain flat.

Charlie Banks, Group Chief Executive of Wolseley, said:
'We are on track to achieve another good performance across our businesses this year. Our principal operating companies continue to successfully increase their local market shares and improve their financial performance. Although Europe remains slow, the three North American businesses all enjoyed record monthly sales in June and this encourages us for the months ahead. Furthermore, the acquisitions and other investments we have announced today provide a further platform for future growth.'

Italian Design and Style Comes to the UK

Italian shower manufacturer Cesana is gearing up to launch a range of contemporary shower enclosures in the UK.

‘The products available from UK retailers will include some of the most innovative shower solutions in the market.’ says Cesana marketing director Gloria Riva.

Curvaceous walk-in enclosures and streamlined minimalist panels will all feature in the new collection. The ethos behind the design of all the showers is to make showering a daily pleasure and respond to the continuing trend for well-being and relaxation in the bathroom.

Cesana has been established in Milan for more than 30 years and says that it has constantly lead the market in both design and technical innovation.

Cesana now produces 16,000 plus different models and this range reflects continual stylistic and functional research to meet every new demand for home living.

‘We are delighted to be bringing these stunning products to the UK market,’ says Gloria Riva.

‘Showers are the fastest growing sector within the bathroom industry at present and we see the UK as a vitally important area of development in terms of company expansion.

‘We're confident that the combination of the very best Italian design, superb quality and functionality will ensure that these products will be extremely popular with both retailers and consumers.’

http://www.cesana.it/english/indice-i.html

Joining Jean Christophe - Thanks to Britannia

A visitor to the Homebuilding and Renovating Show at the NEC earlier this year joined top chef Jean Christophe Novelli at his cookery school - thanks to top range cooker manufacturer Britannia.

Mrs Edna Ferneyhough of Abergavenny won two tickets in a draw at the Britannia stand during the show to take part in a one-day course at the Novelli Academy, the exclusive cookery academy held at Jean Christophe's 14th century home in Hertfordshire.

‘I'm absolutely delighted that Britannia enabled me to take part in this fabulous course - it was fantastic!,’ said Mrs Ferneyhough. ‘The course was led by Jean Christophe himself and featured some of his classic signature dishes. It was a real treat.’

Hell's Kitchen star Jean Christophe has a 150cm Britannia Classic cream range cooker in his own kitchen, which he is using throughout his academy schedule. Offering all the convenience features expected of an up-to-the-minute range cooker yet traditional in design, the Classic is a good choice for a country kitchen.

The cookery academy tickets cost £500 per pair and a second winner is due to take part in the course later this summer.

Britannia produces a wide selection of classic and contemporary range cookers, built-in ovens and hobs, plus cooker hoods, cookware and accessories.

Häfele Seeks ‘Glass Partners’ Nationwide

Häfele is seeking to establish a network of Glass Partners countrywide in response to what Architectural Glass Products manager Gary King describes as: ‘spiralling demand.’ That demand, he says, is generated by the increasing numbers of people at all levels seeking to introduce a little more light into their lives and is led by architects and interior designers.

‘When we published our recently introduced Architectural Ironmongery catalogue for 2005/06,’ he says, ‘we were obliged to increase our glass systems portfolio from six to 50 pages. This was in response primarily to the growing demand for
glass-based products for shop fitting applications and for space division across the kitchen, bathroom and living space spectrum, including access and on into sliding door systems for everything from wet rooms to conservatories.’

From the company’s ever-expanding HQ and warehousing complex in Rugby, Häfele is the exclusive UK agent for a variety of European manufacturers and is supplier of a vast range of glass door rail and patch fitting systems including the company’s MGG patches for laminated glass. But as Gary King emphasises, ‘We are suppliers, not installers and so we need to forge strong links with our new Glass Partners in the establishment of a practical interface between us and our architect and designer customers.’

Some Glass Partners have already been recruited in key parts of the country, he reports, but adds that some important gaps remain remain to be plugged, notably in the south west and the north east and west regions. Häfele will be supporting its Glass Partners in a variety of ways including the company’s website – http://www.hafele.co.uk - on which all glass systems products are listed and their benefits demonstrated.

Häfele’s Glass Partners can also capitalise on extensive product training both in Rugby and directly in conjunction with overseas suppliers, full technical backup, priority turn around on price and specification quotations, and project referrals from architects and main contractors. Partners will enjoy preferred pricing, marketing via the internet as well as specialist published media plus, of course, on the website by way of a clickable location map reference that is currently receiving 20,000 hits per month.

Tel: 01788 542020

Homag Group Providing Solutions at David Bailey Furniture Systems

Kent-based David Bailey Furniture Systems is a specialist company providing fitted furniture and other solutions to the general healthcare and educational sectors.

The company was established in 1982 and says that it has grown rapidly based on its reputation for innovation, quality and service. The company’s customers include mainstream NHS hospitals, PFI initiatives, doctors' surgeries, new school builds and science and classroom renovations.

A modern factory has a staff of around 30 highly experienced workers and operators and is equipped with some of the most modern panel fabricating and processing equipment available.

Production Director George Goldfinch explains that while many products can be built to a semi-standard specification, a large number are bespoke in terms of the drawings and CAD files they receive from designers and architects. Also, the nature of the company’s customer base requires materials and production/assembly processes of the highest durability and performance.

‘We often have to approach projects from a totally new angle where we require a good deal of innovation to come up with a solution and answer’ says George Goldfinch. To this end David Bailey have relied for many years on a successful technical partnership with the Homag group and, in particular, on the advice and co-operation of Homag UK's Keith Hack.

Homag UK has supplied technology and machines over many years including beam saws and edgebanders. But the company says that two of the more recent machines supplied are notable for their innovation in solving problems - in fact they are the only two examples operating in the UK.

The most recent installation was a Ligmatech MPH 500 carcase press with turntable loading system to enhance throughput speeds and aid the operators and assembly technicians. The special infeed table is based on a roller track that can be moved at 90 degrees away from the clamp while the carcase is finally assembled and then presented directly to the clamp for loading. The fast set-up Ligmatech has greatly enhanced production and George Goldfinch is considering fitting a similar system to the outfeed.

The other machine at David Bailey is a Weeke BHC 550 CNC machining centre which has been specially adapted by Homag UK and Weeke to solve a particular problem - the precise angle cutting of wide worktops with an integrated upstand at the rear. Previously this could only be achieved (in terms of accuracy) manually. Slow, expensive and laborious. Weeke fitted the BHC 550 with special saw on the main tool head that could rotate through 360 degrees and then wrote a program for the controller to calculate all the parameters of the workpiece and the angles to be cut. Into this software equation the company also had to calculate the changing kerf of the blade relative to the required angle.

‘It's a fantastic solution’ says George Goldfinch, ‘and one of the main reasons that we work with Homag more and more to provide even better products solutions and service to our expanding customer base.’

Alongside the Weeke is another Homag Group machine crucial to the special products that are required by David Bailey's customers - the flexible and reliable Brandt PF20 static postformer. There are many of these machines working in furniture and laminate fabrication facilities across the country and they have become legendary for their reliability and productivity.

David Bailey also says that the Homag UK infrastructure with its back-up and support engineering service linked to the main factories in Germany is now a primary consideration in equipment procurement.

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

Over a Million Employers Urged to Tackle Age Discrimination Now

A high profile partnership of industry bodies, government departments and employer representatives have launched a new national campaign. The campaign will promote best practice and help employers 'Be Ready' for legislation on age discrimination, scheduled for October 2006. The Age Partnership Group (APG) is currently mailing over 1.4 million newsletters to employers, outlining best practice information to help them create an age diverse workforce.

BBC TV and Radio 4 presenter, John Humphrys, is supporting the APG’s campaign. He stated:
'Employers who ignore the wealth of experience shared by older workers are making a big mistake. They should be grabbing it with both hands. What’s more, with new laws being introduced in 2006 they will have no choice but to adopt age positive practices whether they like it or not. So why wait? Get on the right side of the law and benefit from it at the same time.'

The APG is targeting information towards helping small and medium businesses, managers and HR professionals, and outlining some of the benefits to business of employing an age diverse workforce. A free 'Personnel Organiser' and CD Rom dispelling myths about age, providing top tips, case studies and sources of help, is available to callers from a dedicated orderline.

The APG partners in England include: Acas, Association of British Insurers, The Association of Chartered Certified Accountants, British Chambers of Commerce, Chartered Institute of Personnel and Development, Chartered Management Institute, Confederation of British Industry, Department of Trade and Industry, Department for Work and Pensions, EEF, the manufacturers’ organisation, Employers Forum on Age, Employers Organisation for local government, Federation of Small Businesses, HM Revenue and Customs, Institute of Directors, National Association of Pension Funds, Small Business Service, Society of Personnel Officers in Government Services and Trade Union Congress. Other groups represent the APG Wales and Scotland and further information can be found on the APG website.

Employers can request information direct from the APG by calling a free order line on 0845 715 2000 or emailing mailto:apg@isky.co.uk. Further information can be found at http://www.agepositive.gov.uk/agepartnershipgroup

Give Yourself a Name

Derek Vaughan, Managing Director of one of the leading trade associations, The UK Trades Confederation stresses the importance of SMEs having an individual identity to enhance their place in e-business.

There are approximately 3.75 million small to medium sized enterprises (SME's) in the UK making them an important sector in UK business. However SMEs have limited resources and budgets compared with bigger companies and it is often difficult to compete and to be recognised. Therefore it has never been so important for SMEs to have an individual identity to enhance their place in the market through branding and having an online presence. It is imperative that SMEs overcome their fear of technology and have a user friendly website to improve productivity, credibility and communications with customers.

Entering e-business might sound terrifying for some SMEs and expensive, this is not the case as you can achieve an effective online presence if you start small and not fall into the trap of 'running before you can walk'.

First of all choosing a name for your business is important, it adds credibility, brand recognition and above all else selling potential as no one wants to deal with a company that doesn't have a name. Don't just think because you are small you cannot have a logo which can be used on business cards, website and company stationary. Imagine if you were employing someone yourself, the normal procedure is to look at their website as a measure of their credibility, also you would expect to be able to communicate with them via email. Having your company name as your domain name is crucial to the success of your website as it not only creates a good first impression but makes it easier for potential customers to find you on the Internet and will create more traffic to your site.

Finding a domain name is difficult as there is so much competition but keeping it short, memorable and easy to spell will all increase brand recognition. Also make sure you do some research before deciding on your domain name, check if there are any other similar domain names on the Internet and if so are they direct competition as you wouldn't want customers going to their sites instead.

Building a good website doesn't mean the bigger the better, small websites are successful if they are simple, informative and up to date. Many SMEs think they have to spend huge amounts on building a website that in time may be unmanageable and costly to maintain. A website that is effective is one that works, as there is nothing more frustrating than pages not appearing or it not functioning properly. Visitors to your site expect to be able to find information quickly, be able to contact you and feel secure.

Creating a personality for your business online can also be easier for SMEs if a modest simple approach is taken, as creating a 'traditional local shopkeepers feel' where customers are given an honest, flexible, reliable service that is value for money, will place your business higher in the market place than if you invested in a flash complicated website. Adding endorsements from existing customers or businesses that you have supplied to can also increase your credibility and will make your website more personal.

Choosing a web package or web designer can be difficult for SMEs due to lack of resources, bigger companies have the luxury of being able to take time choosing a web designer and will ask several web design companies to pitch. However if you are a smaller business this maybe more difficult due to financial and time constraints. If you are going to go down the DIY route then do make sure you ask for free trials as you could spend a huge amount of money on a self design web package only to discover you don't have the technical ability to make it function or maintain it. There is an abundance of web design companies that are eager for your business and your money. One of the main problems is that web design companies tend to blind you with web design jargon which you may not understand and they will lure you into maybe spending more money on your website than is needed. This also may result in you having a website that you don't understand or can manage: therefore you could incur most costs to maintain or update it. A good idea is to search the Internet for other SMEs in the same field so you can get a feel for what you want to achieve and contact them for their web designer details.

Once you have decided on your web package or designer and have a company domain name take some time and research your market. Ask yourself the following questions:

* Who is my target audience?
* What type of customers do I want to attract?
* What is my key message?
* Am I a worldwide business or just UK?
* If I am trading online where can I deliver my goods or service?
* What resources do I need to fulfil orders and deliver?

With the Central Government driving local authorities to become more effective at procurement to source better value and lower priced deals to operate a mixed economy of service providers including SMEs, it has never been a better time to market your business to Local Government. Every year £140bn of projects are up for grabs and the government is keen to support and involve SMEs into the equation to benefit the economy and the community by keeping people employed.

SMEs that are able to trade online and are accredited are more likely to be considered, therefore it is important to consider this when building your website. Within the next two years every Central and Local Government Department will be able to 'trade' electronically with its suppliers as advised by the National E Procurement Project. Therefore, SME's that are web enabled and can accept orders or take payments online, will stand a better chance of selling to the government and reduce the risk of late payments from 30/60 days to 2/3 days.

Therefore, whether you are wanting to market your business to the government or the public, it is essential that you have an online presence, a domain name and brand recognition to enable you to compete 24 hours.

The UK Trades Confederation is making a financial commitment to all its members by offering a new service which includes free web design, free hosting, free domain name and free email functionality.

For more information please call on 020 8842 4442

Email mailto:mail@uktc.org
Web: http://www.uktc.org

UK Trades Confederation bio
The UK Trades Confederation exists to help members increase their business, protect their company and reduce overheads. This is achieved through an extensive range of benefits and services that are continually reviewed and updated.

Membership of the UK Trades Confederation provides businesses with a recognised accreditation and customers with the peace of mind of knowing that you are dealing with a company that cares about its image and standards.

In addition, the Confederation provides up to the minute and invaluable information to its members on issues ranging from latest legislation to advice on running your business.