Pilkington
Group Announces Strong Annual Results, Maintaining Profit Levels and Significfantly
Reducing Debt
On
26th May, Pilkington plc announced its results for the year to 31st March
2004. Chairman, Sir Nigel Rudd, commented: ‘This is a strong set
of results that shows Pilkington achieving management’s objectives.
Our focus on keeping down costs has enabled Pilkington to report substantially
maintained profits despite challenging conditions in some of our biggest
markets. Operational and manufacturing efficiency improvements achieved
over the past few years have resulted in a record cash performance –
our prime objective for this stage of our strategy. Group borrowings were
reduced by 23 per cent over the year. Pilkington remains on track with
its strategy and is delivering on its promises.’
Highlights:
• Operating profit from Group businesses up to £179 million
from £175 million
• Profit before goodwill amortisation, exceptional items and taxation
on a like-for-like basis up to £151 million from £145 million
(2003)
• Earnings per share before amortisation of goodwill and exceptional
items up to 7.4 pence from 6.5 pence (plus 14 per cent); basic earnings
per share up to 6.2 pence from 5.4 pence
• Free cash flow (before dividends, acquisitions and disposals) up
to £207 million from £135 million; a record cash performance
• Net debt reduced by nearly one quarter in the year, from £861
million to £664 million
• Final dividend 3.25 pence, maintaining 5.0 pence in total for the
full year
Statement by the Chairman, Sir Nigel Rudd
I
am pleased to be able to report another set of strong results from Pilkington.
As anticipated, challenging conditions continue to prevail in most of
the markets in which the Group operates. Despite this, Group sales held
up well and the Group’s operating profit excluding joint ventures
and associates rose from £175 million to £179 million, with
the strong profit performance in Automotive offsetting the reduction in
Building Products. Our share of profits in joint ventures and associates,
affected by currency weakness in Mexico, fell from £42 million to
£33 million.
Continuing focus on cash generation enabled Pilkington to generate its
highest ever cash inflow before dividends, management of liquid resources
and financing of £240 million, and to reduce Group borrowings by
23 per cent over the year, to £664 million. Taking into account
the preference shares redeemed last year, this is the lowest level of
Group borrowings recorded since 1997.
These results again featured a strong performance in our Automotive business,
where organisational and operational performance improvements have helped
offset price pressures. Building Products’ results in Europe were
affected by generalised price weakness, though outside Europe Building
Products’ results continued to improve. Results were further underpinned
by the transformation in manufacturing and operational efficiency achieved
over recent years in both businesses.
The sale of Pilkington Aerospace has concentrated management’s focus
further on the core Building Products and Automotive businesses. A unified
Building Products Europe business, encompassing both 'upstream' and 'downstream'
operations, has been established. The reorganisation of the Automotive
business has been completed with the creation of a single global organisation
serving both the Original Equipment (OE) and Automotive Glass Replacement
(AGR) sectors.
The ‘Step Change’ programme in North America, launched three
years ago to bring our businesses there up to the levels of the rest of
the Group, has now been completed, with the predicted annual benefits
achieved. Nevertheless Pilkington is determined to maintain its competitive
edge and programmes have been launched over the past year to ensure that
the Group stays ahead through further reductions in overhead costs and
improved efficiency.
Financial
Results
Turnover from continuing operations, including joint ventures and associates,
was unchanged at £2.8 billion. Operating profit from Group businesses
was £4 million ahead of last year at £179 million, though
profits from joint ventures and associates declined, mainly in Brazil
and Mexico, from £42 million to £33 million.
As a result, overall operating profit at £212 million was down two
per cent on the £217 million in 2003. Profit before goodwill amortisation,
exceptional items and taxation of £151 million was impacted by the
borrowing costs assumed following the decision to refinance the outstanding
preference shares in March 2003, but on a like-for-like basis rose by
four per cent over the £145 million in 2003. After deducting goodwill
amortisation of £8 million (2003 £9 million) and exceptional
losses arising from the sale and termination of operations of £7
million (2003 £4 million), profit before tax was £136 million
(2003 £140 million).
Earnings and dividends
Earnings per share before exceptional items and amortisation of goodwill
increased from 6.5 pence to 7.4 pence, up 14 per cent. Basic earnings
per share increased from 5.4 pence to 6.2 pence, up 15 per cent. Compared
to 2003, attributable earnings rose due to lower net interest costs, tax
charges and minority interests, despite the reduced profit contribution
from joint ventures and associates. The Board is recommending a final
dividend of 3.25 pence per share, bringing the total for the year to 5.0
pence per share, the same as last year. The dividend is covered nearly
three times by free cash flow. Subject to the approval of shareholders
at the Annual General Meeting, the final dividend will be paid on 30th
July 2004 to shareholders on the register at 11th June 2004.
Cash flow and borrowings
Operating cash flow amounted to £377 million (2003 £367 million).
Cash flow before dividends, management of liquid resources and financing
increased from £138 million to £240 million, up 74 per cent.
After payment of £54 million for dividends, net cash flow before
financing more than doubled from £80 million to £186 million.
This clearly demonstrates Pilkington’s continuing achievements against
a key strategic objective, enabling the Group to make further significant
reductions in its borrowings.
Net borrowings at 31st March 2004 were £664 million, down by £197
million from £861 million at 31st March 2003. The reduction in borrowings
over the last two years was £256 million, down 28 per cent, taking
into account the Pilkington Channel Islands Limited’s preference
shares redeemed in 2003.
Strategy
Pilkington is implementing a clear three-stage strategy, ‘Cash for
Growth’, the stages of which are:
• First - improve the operational fitness of the businesses
• Second - produce net free cash from operations, initially to reduce
debt, and
• Third - invest surplus cash in future profitable growth.
Over the past six years, radical improvements have been made in manufacturing
performance, with significant reductions in overheads across the business.
Management attention remains focused on achieving further internal economies
and on the generation of net free cash. Planning is already well advanced
on the third stage of the strategy – investment in the growth of
the business. Such investment will be in existing operations as well as
in new markets and Pilkington has already established a presence in both
Russia and China, investing so as to limit risk and minimise early cash
expenditure.
For a Review of Operations (and Table showing Segmental Analysis),
Click Here
Zendow:
A Conceptual Newcomer to the Window Industry
Status
Systems is launching the zendow 70mm PVCu system - the result of £2
million worth of investment. Zendow has risen out of three years of research
and development in both the UK and the Belgian headquarters of Status'
parent company, the worldwide Deceuninck group. Its design incorporates
25 improvements made to the company's existing chamfered suite. Zendow
offers the industry more solutions for less.
‘The
end of the nineties and the beginning of the 21st century saw a maturing
market place requiring greater fabrication efficiencies and sharper competition.
It was clear that a major product overhaul was required to proactively
lead the changes that were happening in the market place,’ said Status
general manager Chris Foreman (pictured). ‘As part of the worldwide
Deceuninck Group, we were able to collectively work on a more conceptual
change which would ultimately make life easier and more profitable all
round.’
Volkswagen Beetles, Mini Coopers, Volvos, Smeg appliances - the clean,
uncluttered retro rounded design of these products has made them aspirational
products in the UK market place. Similar kerbside appeal was crucial to
the initial design brief, particularly in view of the replacing the replacements
potential of the UK market place. The design brief also looked at all
players in the window industry, and devised a way forward that would balance
the requirements of the window industry chain - the fabricator, the installer,
the specifier and the consumer.
The resulting System zendow concept provides ease of manufacture and reduction
in complexities for the fabricator and a whole new series of fixing and
finishing accessories has been added for the installer. Both the specifier
and the consumer benefit from improved overall performance, colour, aesthetics
and security.
‘Zendow
has been created in anticipation of the evolving market place,’ continued
Chris Foreman. ‘It combines modern styling and a soft, clean appearance
with increased functionality, reducing fabrication costs and increasing
the choice of product solutions. Features such as insulation have been
developed with flexibility in mind, should parameters change in the future.’
For example, the system is capable of being thermally upgraded without
the need to resort to five chamber profiles. The insertion of a central
seal reduces the value to 1.4W/m2k - the equivalent rating to a five chamber
system.
As well as looking at the functionality of the product itself, zendow
has also addressed the process of fabrication and installation, rationalising
and simplifying the system as a whole to improve overall efficiencies.
Many of the profile details are multifunctional, reducing the complexity
in stock holdings and manufacturing. A cleaner, more uncluttered shape
improves the sawing, cleaning and welding processes in the factory, as
well as providing a smooth 'wipe clean' surface in the home.
‘Of particular note is the multifunctional rolled in weldable seal
that replaces the inefficiencies of existing gaskets.’ said Chris.
‘Constructed from three different materials the zendow seal enables
variable compression rates. This makes it truly multifunctional as it
does the job of an internal and external seal, and a gasket.’
‘This is the next generation of rolled in gasket,’ added Chris.
‘Our patented seal is the result of years of micro-engineering, and
is what make zendow revolutionary to the future of the window industry.’
Tel: 01457 875731
Email: mailto:sales@status-systems.co.uk
Web: http://www.status-systems.co.uk
Network
Veka Toughens-Up on Recruitment Spec
Network
Veka has taken another positive step to clamp down on dubious traders
by tightening its membership criteria. The move is aimed to give homeowners
increased protection in dealing with new members that have no track record
in the organisation. Currently, the organisation suspends several members
a year, many of them newcomers, and now hopes that this initiative will
help to identify borderline cases before their application is considered.
Managing
Director John Ogilvie (pictured) accepts it could slow down the organisation’s
expansion but insists it is the organisation’s long-term interest.
‘We realise it may cost us a few potential recruits, but that is
a risk we have to take,’ he said,
‘It is essential if we are to maintain our integrity, both in the
industry and in the eyes of consumers. It will also be less painful than
taking on new members then having to show them the door, especially if
they have left dissatisfied customers in their wake.’
Among the new criteria, applicants must have been trading for at least
a year and provide five consumer references, access to accounts and more
information on home addresses in the case of sole traders and partnerships.
Contact: John Ogilvie
Tel: 01282 473170
Public
Sector Housing Transfers Mapped by Windowbase
New,
coloured maps from Windowbase show the new housing associations or housing
management organisations, as vast quantities of public sector housing
stock are transferred to ALMOs (arms’ length management organisations),
housing associations or housing trusts.
The new database - of which these maps are an essential part – identifies
the organisations, the managed general-needs housing stock, and the key
people involved in specifying materials or services for new-build or maintenance
requirements.
The 2004 edition of the Public Sector Housing Specifiers database now
provides an additional 200 contacts, giving 1600 named individuals at
1000 addresses in 804 organisations, all with housing stocks in excess
of 250 dwellings. Architect Martin Harrison, the Director managing the
latest research, estimates that some 5.8 million public sector dwellings
are represented in this database. He says, ‘The pace of change is
speeding up. Local authorities used to be where most of the investment
took place but the balance has shifted towards the private sector, together
with new ways of managing the work. This latest database means that Windowbase
subscribers will be better placed to respond to those changes.’
The coloured maps make it easy to see which local authorities have transferred
. . . and to whom. And, like all Windowbase data, the exact date that
the details were verified is shown, so that users know where they stand.
The Public Sector Housing Specifiers database is available – complete
with updating service – direct from Windowbase Ltd at an annual cost
of £960 plus vat.
For more information, e-mail mailto:sales@winbase.co.uk
, download sample data from the website http://www.winbase.co.uk
or contact Mike Davis on 01706 644308.
More
Expansion Planned as Bohle Hits 80
Over
200 people attended a lavish dinner and ball which was put on to mark
the 80th anniversary of the founding of Bohle AG, the German parent company
of glass processing machinery firm Bohle UK.
The
80th birthday event was held at Solingen, Germany – the town where
Bohle was founded. The guests included Ulrich Bohle, Chairman; Norbert
Bohle, who is on the Board; Gary Dean, Managing Director of Bohle UK;
and five other senior Directors and Leaders from Bohle’s subsidiaries,
plus all the company’s department heads. Several long-standing retired
Bohle staff members were special guests of honour.
Bohle AG’s Chief Excecutive, Alfons Donat, says, ‘Bohle AG is
the largest company of its type in Europe, and has grown through joint
ventures and acquisitions in recent years to employ over 300 people. These
people are very committed and focused, which has made me very proud to
have joined in 2002 to lead the group.
Ulrich Bohle adds, ‘Bohle UK has developed into a significant subsidiary
thanks to Gary Dean and his team, and we look forward to its further development.
In other areas, during 2003 we have opened subsidiaries in Russia, and
in 2004 we have plans for Hungary and other new European accession countries.
Our expansion plans will continue, as our product range grows.’
Tel: 0800 616151
Web: http://www.bohle.ltd.uk
£3m
Move to New Factory and New, Bolder Logo
Everglade Windows has completed a £3m move to a new factory which is more than four times the size of its old manufacturing plant. It means the Kömmerling fabricator will be able to double its current output from 500 windows a week to 1,000 within six months. And the new 43,000 square foot factory has capacity for 2,000 units, meaning there is plenty of room for expected further growth in Everglade’s trade, commercial and domestic refurbishment retail business.
Everglade
Windows' new 43,000 square foot factory has capacity for 2,000 units
Currently just over 30 people are employed at Everglade, and Managing
Director Vinod Gopal says they are looking to increase production staff
by around six in the near future.
‘Also,
we’re planning to carry on with our investment programme in new plant
and machinery to bring even more added efficiencies into the manufacturing
process.’
At the moment Everglade runs four production lines, with plans for a fifth
which will be dedicated to the company’s growing conservatory business.
The new factory is just 500 yards from the company’s old premises
on the Silicon Business Centre at Perivale, Greenford, in North West London.
The production floor comprises around 30,000 square feet, with the rest
of the space being used for offices and a showroom.
Everglade, which has been in business for 25 years, is a manufacturer
of the Kömmerling GOLD 58mm, 70mm and Connoisseur window systems
in London and the South East.
To
coincide with the move to its new factory Everglade has updated its image
with a new logo.
‘We needed new stationery, along with sign-writing for the premises
and vehicles. And as we’d had our old logo for 15 years we thought
we’d give it a fresh look and get an updated image,’ says Vinod
Gopal. ‘The more modern approach to our logo makes a bolder statement
about Everglade and our expansion.’
Everglade says that it considerably raised its profile with installers,
when, for the first time in its history, it exhibited at Glassex this
year. Sales Manager Neil Clark said the exhibition far exceeded expectations
in raising the company’s profile and increasing the customer base.
‘We had around 100 strong, good quality leads. We have every intention
of exhibiting there again next year.’
Another
milestone came for Everglade when the company recently gained BS7950 enhanced
security accreditation on its three Kömmerling systems fitted with
Winkhaus King Cobra casement shootbolts. The windows were tested at the
UKAS independent test facility run by Winkhaus Laboratories Ltd.
As well as fitting Cobra shootbolts on its windows, Everglade uses Scorpion
Multi-point locking systems for its doors. Vinod Gopal says: ‘Our
installation customers demand windows and doors which meet the very latest
standards of the Police Secured by Design initiative, and withstand all
forces applied in PAS023/024. Our research showed that the Winkhaus style
and security was the perfect partner for us.’
Martin James, Business Development Manager for Winkhaus, says: ‘When
combining a well-fabricated Kömmerling casement window, together
with quality German hardware, the BS7950 standard is within easy reach.’
CE
Marking Workshop will put Door and Shutter Makers on the Right Track
The
CE marking of industrial, commercial and garage doors and gates under
the Construction Products Directive is now available, and help is on hand
for manufacturers and suppliers who want to meet the new CE marking challenges.
The Door and Shutter Manufacturers’ Association (DSMA), a member
of the Door and Hardware Federation (DHF), is holding a workshop which
will give guidance on what UK companies must do now that CE marking can
take place, and will also reveal the business benefits that correct CE
marking will bring.
The workshop takes place on Tuesday July 13th at the Quality Hotel, Loughborough.
The cost per delegate, for non DSMA members, including lunch, is £150,
which can be recouped against first year fees for any new member applications.
The cost to DSMA members is only £15.
Now that the BS EN Standard 13241-1, which is a harmonised Product Standard,
has been published, specifiers of industrial and commercial doors and
shutters will demand CE marks on the products. Only those companies which
have had their doors tested will be allowed to display the CE mark.
The workshop will explain where to go to have products tested, and will
describe what the testing requirements are. These include air permeability,
water tightness, thermal insulation, windload resistance, safe operating
forces and anti drop characteristics.
Said Ray Nowell, technical officer for the DSMA: 'We cannot over stress
the importance of door companies putting testing procedures into place
now so that they have CE marked products ready to supply. Those companies
that cannot supply CE marked products will be at a grave business disadvantage.
'The workshop will look at every aspect of testing and product safety
requirements and will inform delegates of all the steps they need to take
to ensure they have CE marked products ready to sell when the legislation
comes into force.'
For more information, and for tickets for the workshop, contact the DSMA
Secretariat, 42 Heath Street, Tamworth, Staffs B79 7JH. Phone: 01827 52337.
Fax: 01827 310827. Email: mailto:info@dhfonline.org.uk.
Website http://www.dhfonline.org.uk.
‘Taylor’
Made Solution from Duraflex
Duraflex
PVCu windows developed specifically for Taylor Woodrow are providing an
exclusive solution for new homes in Wiltshire. Specialist new build fabricator
and installer, NBW Ltd, worked closely with Duraflex and the developer
to configure a product to meet both the aesthetic and fire safety demands
of properties at Pennymead in Sherston.
Taylor
Woodrow specified a traditional design for Pennymead, which is a mix of
private and social housing, including mock sash casement windows set into
stone mullions to be in keeping with the local area. However, in order
to meet recently introduced fire safety regulations this window style
could not be installed upstairs as it did not afford easy egress in the
event of a fire.
In conjunction with NBW, Duraflex has developed a solution with
equal sightlines for both downstairs and upstairs windows to meet Taylor
Woodrow’s requirements. Ground floor casement windows fabricated
from the Duraflex 65mm Diamond Suite feature a Mock Horn and Georgian
Bars applied to the outside of the sealed unit to complete the period
look.
To maintain the traditional look on the upper floors, but without compromising
safety regulations, Duraflex has designed a set of cappings and mouldings,
or Mock Sash, for its tilt & turn window range. Tilt & turn windows
are manufactured in the standard way, but include a transom in the sash.
A shaped capping is fixed to the profile using Tape or Hot Melt adhesive,
plus a simple screw fix Horn detail. The operation of the tilt & turn
window is not affected by the addition of the Mock Sash, so maintaining
all the advantages of this design such as easy cleaning and fire egress.
Evesham-based NBW has extensive experience of the new build market and
has forged successful working partnerships with many national and regional
housebuilders. The company reports a significant trend towards more adventurous
designs for new homes, rather than just standard window styles. ‘The
Duraflex Diamond Suite offers a wide range of designs and features, such
as Mock Horn and Georgian Bars, which gives us the scope to satisfy developers’
requirements. And as seen at Pennymead, the Duraflex design team is also
willing to consider developing bespoke solutions, subject to volume, which
means we can respond to the growing demand among housebuilders for a more
individual look,’ explains Geoff Doran, NBW’s Sales Director.
The Mock Sash is now available to all fabricators as part of Duraflex’s
standard product range and can be used with tilt & turn windows from
the 65mm and 70mm Diamond Suite.
Tel: 08705 351351
Web: http://www.duraflex.co.uk
Delta
and GTI Sign up to Everwhite for Roofline
Delta
Double Glazing Supplies focused on Everwhite as its main roofline supplier
in January, although the company has stocked the brand among others for
three years. Director of Delta, Wendy Wyatt, explains why the company
took this decision. ‘We started stocking roofline products three
years ago to offer our customers the chance to benefit from purchasing
their roofline and window trims along with their fitting components. But
from the outset we experienced problems with suppliers, ranging from manufacturing
difficulties and quality issues, to suppliers changing premises or losing
key members of staff. All this caused us immense disruption.
‘The bread and butter of any stockist’s business is to have
a wide range of quality products in stock to satisfy all of our installers’
demands. To achieve this, we need to be able to rely on our suppliers
100%, especially our main supplier. That’s exactly why we’ve
decided to focus on Everwhite. Their deliveries are second to none and
are complete and on time every time. Everwhite’s quality product,
combined with better service and value compared with other brands, mean
that Delta can get on with our business safe in the knowledge that our
supplier won’t let us down.’
GTI recently switched to Everwhite for its supply of roofline. ‘We
were using a market leading brand, but we couldn’t rely on them,’
says Scott Rice, General Manager of GTI. ‘We shopped around for our
new supplier and Everwhite had the most comprehensive product range. And
we haven’t been disappointed. Everwhite has provided us with superb
sales support and reliable deliveries. The quality we receive is on par
with the market leader and it’s good value for money, so we’re
better off now than we were before. Our business is split 80% installer
and 20% stockist, and due to increasing demand we have opened a new trade
counter particularly for DIY customers. Now that we have a supplier who
we know will back us up, we can take advantage of this growing sector.’
Tel: 01685 882 447
Classic
Trade Frames Speeds Off to a Great Start
Just
3 months after the grand opening of its new Cash and Carry superstore
in Manchester, Absolute Windows Ltd – a North of England trade and
commercial fabricator – reports that Classic Trade Frames is already
exceeding initial expectations, taking in new business from across the
UK rather than just in the locality. The company has also invested in
a sporty advertising tool that reflects the speed of its success: a new
VW Beetle complete with Classic logo.
Housed
in a 12,000 sq ft unit, Classic Trade Frames opened its doors on 1st March
2004. Its immediate success is a triumph for Absolute Windows Director
Jim Dance, who came up with the concept of a Cash and Carry superstore
for windows and related products after listening closely to the needs
of smaller businesses.
Says Jim:
‘With the rise of the ‘super fabricator’, a lot of smaller
installers and builders feel intimidated by their suppliers and don’t
feel they are getting the service they deserve. We wanted to create a
solution just for them.’
Run by Richard Goodwin, a close colleague of Jim, Classic Trade Frames
offers a number of clear advantages to installers and builders. A loyalty
trade card registration system has been set up to provide discounts for
regular customers and, because the most common form of payment is by credit
card, orders can be placed over the phone and by email for speed. Classic
Trade Frames has also been set up as a one-stop shop for customers and
stocks PVCu panels, trims, architraves and other building products for
the convenience of the installer or builder. Windows and doors are manufactured
from the Synseal Shield system.
Says Jim Dance:
‘We’ve had fantastic back-up from Synseal in setting up the
new factory and spreading the word about Classic, which has been a tremendous
help to us.’
Such has been the success of the new store that Jim anticipates it will
eclipse his original goal - to sell around 500 frames per week within
12 months – far sooner than expected:
‘We are already having to recruit new staff and are looking at buying
more machinery to cope with demand, and we’ve had customers from
as far afield as Cumbria, Harrogate and Wales in to shop at Classic. We’re
very satisfied that the opening of the store was well-timed and welcomed
by smaller installers and builders about to start work during the busy
summer season. We’ve also had calls and visits from people who have
seen the Classic Beetle driving around the area, so that has worked really
well for us. The response in general has been incredible.’
Both Absolute Windows and Classic Trade Frames have recently adopted lean
manufacturing principles following the advice of David Amos of Michael
Rigby Associates. This process has been designed to make good use of up-to-the-minute
information technology in order to give customers the best possible service,
and has already accelerated start-to-finish fabrication from four days
to just eight hours, greatly increasing throughput. In addition, Absolute
General Manager Tony Davies has been appointed to oversee all Health &
Safety and risk assessment concerns with a view to achieving full BSI
Kitemark approval for all Classic Trade Frames windows in the near future.
Tel: 01204 394006
Email: mailto:jim@absolute-windows.co.uk
Web: http://www.absolute-windows.co.uk
Float
Glass Industries has undergone a major reorganisation of its glass processing
operation in Manchester to meet the needs of the modern glass industry.
The result is a highly efficient facility with the addition of some of
the latest processing equipment near to the company’s main site.
Drawing
on over 100 years of experience in the glass business, Float Glass Industries
(FGI) has been gearing up for the future with an investment programme
aimed at maximising opportunities in the interior fit-out and design market.
‘We’re actively targeting growth areas for glass, including
balustrading and partitioning as well as the exhibition and shop fitting
sectors, where quality, delivery and cost are all critical,’ explains
David Offland, FGI’s Joint Managing Director.
‘The principle reason behind putting all our processing machinery
under one roof, in its own dedicated factory with its own specialist staff,
is to offer customers an improved service in terms of quality, turnaround
and delivery. Large size volume contracts and partitioning, in particular,
are prime examples where customers have to have confidence in their supplier’s
all round capability. Indeed, we are pleased to be producing glass for
one of the UK’s premier partitioning companies.’
‘On-going investment in new machinery innovation is therefore essential
not only to meet increasingly complex demands but also to ensure customers
an accurate and ‘speedy’ response,’ he continues. ‘Among
FGI’s acquisitions is the latest For.El vertical laminated glass
cutting line with automatic loading and stocking facilities - one of only
two currently installed in the UK. The fully automatic cutting line can
cut up to 1400m2 of laminated glass per day and is used by FGI in the
production of glass for various market sectors including partitioning,
balustrading, commercial / domestic IG units and new / replacement shop
front glazing.
‘A wide range of laminated stock is held on site ranging from the
run of the mill clear laminates to the more specialist acoustic, solar
control and fire resistant glasses. Complementing our existing MB10 double
edging machine for the smoothing and polishing of large sized rectangular
glass are two Cougar cutting tables, a new Bystronic 2 cutting line for
additional capacity plus an upgrade to the existing Bystronic line to
enable edge deletion of soft coated glass. A new Bavelloni Alpa 320 CNC
edging machine which enables the shaped processing of glass up to 3200mm
x 2300mm has also formed part of this extensive improvement programme.’
It was, in fact, the acquisition of a new Tamglass ProConvectionTM Horizontal
Electric Convection Furnace for FGI’s third toughening line which
necessitated the relocation of the Processing Division to its own dedicated
premises last year. ‘We decided to consolidate the majority of our
processing machinery to one of our nearby sites previously used for the
distribution of stock glass. The premises have been fully refurbished
and consist of a substantial production area plus spacious offices,’
says David. Any disruption was kept to an absolute minimum, thanks to
forward planning and the co-operation of FGI’s experienced team.
‘They played a key role in helping the move to go smoothly by juggling
their working hours to ensure customers weren’t inconvenienced,’
adds David.
The new Tamglass Furnace has doubled capacity and therefore enabled FGI
to meet the growing requirement for toughened ‘K’ and soft coated
Low-E glasses following the introduction of Document L. It also gives
FGI additional capability to provide large sized architectural toughened
glass in substances up to 19mm thick.
The investment programme has further expanded FGI’s product range.
Options now cover everything from clear and tinted float glass to wired
glass, fire resistant and laminated safety glass in a wide choice of thicknesses
and available in stock or cut sizes. The company also offers a selection
of specialist glasses including Pilkington Activ and a comprehensive selection
of solar control architectural products.
Summing up, David Offland says the reorganisation is already reaping benefits
for both the company and its customers. ‘Concentrating our processing
resources under one roof is helping us to achieve optimum efficiency and
a rapid turnaround on every order, including large sizes and high volume,
whilst maintaining the high optical quality the market demands.’
Tel: 0161 946 8000
Web: http://www.floatglass.co.uk
GBW’s
Discovery range of composite doors has been specified for a number of
recent window and door renewal programmes in the London Borough of Barnet.
Offering a smart and secure solution, the Discovery Door is one of the
Council’s preferred composite doors and is proving a popular choice
with tenants.
Barnet
Council has 12,000 homes of its own, which are managed alongside approximately
3,000 on behalf of its leaseholders. The Council operates an ongoing modernisation
programme of its housing stock for the benefit of residents, which includes
energy efficient PVCu replacement windows and high performance composite
doors.
GBW’s Discovery range provides a durable alternative to PVC and hardwood
doors and meets all the relevant standards, such as Secured by Design
and PAS 23/24 and is fully compliant with Document L. Paul Adams, Barnet
Council’s Senior Building Surveyor, comments, ‘We’ve used
steel-faced doors and looked at GRP but believe that composites offer
the best value all round and are very low maintenance. GBW’s Discovery
doors were first recommended to us by our main window contractor for a
refurbishment project involving 200 homes and we’ve been very satisfied
with their performance so far.’
Barnet Council offers three styles and four colour options from the Discovery
collection to simplify maintenance and repairs. As part of its customer
support strategy, GBW has designed bespoke Specification Sheets detailing
just these designs for the Council, which can be shown to tenants as part
of the consultation procedure. On the important issue of service, Paul
adds, ‘Although most after-care is managed through the main contractor,
when I have needed to deal direct with GBW they have always responded
quickly and efficiently.’
Composite doors are becoming increasingly popular with the social housing
sector, combining the low maintenance and weatherproofing qualities of
PVCu with the aesthetic benefits of timber, plus a high level of security.
GBW’s Discovery is manufactured from Acrylic capped ABS skins, formed
around a laminated frame with a high-density core. GBW has also rebated
the frame, giving the advantage of a flush fitted look and incorporating
three weather seals. Internal steel mesh reinforcement and multi-point
locking ensure optimum safety and security. Also, the doors are extruded
in colour, rather than painted, for a longer lasting finish.
Recent developments for GBW’s Discovery range have focused on improving
security levels still further. EntryGuard is a new high security locking
system featuring a heavy-duty integral guard bar, which offers a stronger
and more attractive alternative to a door chain. Discovery’s twin-rebated
frame allows EntryGuard to be fixed discreetly within the frame with no
need for routing of the frame. Its unique disengagement facility by a
key holder from the outside means EntryGuard can be left permanently engaged
for optimum security, while an authorised key holder can simply disengage
it from the outside by a 45° turn of the key.
Another new security option for the Discovery is the Ultrascope spyhole,
which allows a much clearer image of whoever is outside the door compared
to a traditional spyhole. Manufactured in light yet sturdy plastic and
measuring 38mm in diameter, Ultrascope features prism mechanism and advanced
internal optics.
Its design permits a wide view of the outside through the one-way viewer
from up to six feet away, eliminating the possibility of attack through
the letterbox and so providing additional peace of mind. Normally factory
fitted by GBW as part of the Discovery door manufacturing process, Ultrascope
is also designed for quick and easy retrofitting on site if required.
Tel: 08705 388377
LGT
says that it has received ‘a fantastic response’ during 2004
to the Cylone Cat. Six tempering machines have so far been upgraded and
retrofitted with LGT’s Cyclone CAT heat balance convection system,
and with several more expected this year it is a very strong part of the
Lambert groups product portfolio.
Hi-Spec, Tuffex, K2, Express Double Glazing, Northern Express Glass and
Tri Warm are all now reporting positive improvements in their glass production.
Cycle Times have been reduced by between 10 – 25 %, and customers
have noticed a reduction in glass breakage. The optical quality of the
glass has also been improved in all cases.
Peter Lambert, the Chairman of the Lambert Group commented ‘It is
our philosophy that we should never stand still, and always strive to
improve our technology. However quality and service will never be sacrificed
and will always remain first class.
‘The mission through the development of Cyclone CAT was to ensure
versatility and ease of installation, not only for our own machinery but
an affordable option as a retrofit to our competitor’s equipment.
Cyclone CAT is a controlled aspirated temperature system that reduces
the heat cycle time on both soft and hard coated glass. This has improved
the optical quality and reduced breakage whilst minimising the use of
So2 gas.’
Cyclone CAT operates in tandem with the control system for the furnace
and by the use of heated compressed air. This air is forced into the oven
by a series of in-line stainless steel pipes, located strategically throughout
the encasement. This allows the glass to be soaked with heat more efficiently
and thoroughly.
‘Extensive research and development tests have shown dramatic improvements
to typical cycle times for hard coated Low E glass. Cycle times have been
reduced on 4mm substrate to around 180 seconds, processing times that
would normally be expected for clear and textured glass of the same thickness
on non-aspirated systems. Soft coated glasses were also successfully tested
at the same time.’ continues Peter.
‘The advantage of the Cyclone Cat system over our competitor’s
product is that the LGT system can easily be adapted to any glass tempering
machine at a fraction of the cost you might expect.’
Tel:
01675 430438
Email: mailto:sales@lambertgtservices.co.uk
Nigel
Keen, Chairman, said recently at The Laird Group's Annual General Meeting,
in respect of current trading and the Group's strategic development:-
'Trading performance in the first four months of this year has been ahead
of the same period in 2003, in line with our expectations, despite the
adverse translation effects of exchange rate movements and higher commodity
prices.
On a like-for-like basis, that is at constant exchange rates and assuming
that acquisitions were owned for the whole of the comparable periods,
sales at Laird Technologies, Laird Security Systems and Laird Plastics
were ahead of the same period last year. In particular, sales levels at
Laird Technologies, again on a like-for-like basis, were some 15% higher
than in the corresponding period in 2003, confirming the improvement in
their markets seen towards the end of last year.
Our businesses in Laird Technologies and Laird Security Systems are developing
strongly and require the focus of our management and investment attention.
Accordingly, we have appointed advisors to assist us in evaluating the
strategic options for Laird Plastics that would maximise shareholder value
to the Group as a whole. Considerable progress has been made in Laird
Plastics over the last two and a half years in returning the business
to sales growth and in re-establishing its margins towards industry leading
levels.
With the strength of our businesses, the Group's sound financial structure
and the strategy we have in place, we expect to make continued progress
during the course of this year.'
Assa
Abloy Q1: Organic Growth and lmproved Margins in all Divisions
'Assa
Abloy had a good start to the year with organic growth and improved margins
in all divisions. I'm particularly pleased with the growth in Americas.
Our Leverage and Growth programme is on track and the outlook remains
unchanged,' says President and CEO, Bo Dankis.
•
Sales in the first quarter increased organically by 3% to SEK 6,283 M
(6,124), including exchange-rate effects of SEK -388 M.
• The operating margin (EBITA) increased to 14.2% (13.8).
• Net income for the first quarter increased to SEK 345 M (299).
• Earnings per share for the quarter increased by 15% to SEK 0.94
(0.82).
• Operating cash flow improved to SEK 615 M (564), excluding restructuring
payments.
The Group's sales for the first quarter of 2004 increased by 3% to SEK
6,283 M (6,124). Organic growth was also 3%. Translation of foreign subsidiaries'
sales produced a negative effect of SEK -388 M due to changes in exchange
rates. Acquired companies had a positive effect of 6% on sales.
Operating income before depreciation and amortisation, EBITDA, increased
by 4% to SEK 1,120 M (1,078). The corresponding margin was 17.8% (17.6).
The Group's operating income before goodwill amortisation, EBITA, amounted
to SEK 890 M (846) after negative exchange-rate effects of SEK -54 M.
The operating margin (EBITA) was 14.2% (13.8). Amortisation of goodwill
totalled SEK 243 M (244).
Income before tax increased by 13% to SEK 530 M (468). Exchange rate variations
relating to translation of foreign subsidiaries' eamings affected income
negatively by SEK -36 M.
The Group's tax charged totalled SEK 183 M (165), corresponding to an
effective tax rate of 35% (35) in relation to income before tax.
Earnings per share after tax, and both before and after full conversion,
amounted to SEK 0.94 (0.82). Eamings per share before goodwill amortisation
amounted to SEK 1.60 (1.48).
Operating cash flow for the quarter rose to SEK 615 M (564), excluding
restructuring payments. Operating cash flow thus corresponded to 1 16%
of income before tax.
Action Programme Proceeding at High lntensity
The two-year 'Leverage and Growth' action programme initiated in November
2003 is proceeding according to plan. The actions include increased focus
on 'end-users' needs; innovations; development of the distribution network;
and development of brands. Simplifications of the operating structure
and an increased tempo in the coordination of purchasing will result in
significant savings. Low-performing units will either be turned around,
sold or closed before the end of 2004.
Total costs for the programme amount to SEK 1,320 M and were reported
as a non-recurring item in the income statement for the fourth quarter
of 2003. Of the total amount, SEK 935 M are cash costs mainly related
to the reduction of 1,400 employees. Annual cost savings are estimated
to reach SEK 450 M by 2005. Approximately half of this amount is expected
to be realised in 2004.
During the quarter restructuring payments of SEK 35 M have been made and
100 of the 1,400 employees involved have left the Group.
Sales for the first quarter in EMEA (Europe, Middle East and Africa) totalled
EUR 307 M (288), with 2% organic growth. Operating income before goodwill
amortisation amounted to EUR 46 M (40) with an operating margin (EBITA)
of 15.1% (14.0%). Return on capital employed before goodwill amortisation
amounted to 17.1% (14.7). Operating cash flow before interest paid amounted
to EUR 31 M (26).
Following the positive organic growth, margins continued to improve for
EMEA, France, UK, Germany and Benelux reported above EMEA average organic
growth with better margins, while the Nordic countries had a flat development.
The Eastern European operation had good sales growth. The acquisitions
of Nemef in the Netherlands and Corbin in ltaly were completed during
the quarter.
‘UK
Maintenance Market’ Report from BSRIA
The
UK market for total building services maintenance was £7.3 billion
in 2002, over £2 billion of which is accounted for by term contract
maintenance. This represents an annual growth rate of 11% since the last
BSRIA report in 2001 and BSRIA estimates that the penetration of term
contracts will continue to grow.
The length and value of contracts has increased significantly. Average
contract lengths have doubled since 1999 to four years. Consequently the
average value of a contract has more than doubled to just under £50,000.
This can be attributed to a greater number of PFI projects, and increased
spending in the public sector.
Subcontracting accounts for 19% of the workload. The most commonly subcontracted
out services are lifts, water treatment, IT cable and fire and security.
Health risks such as Legionella are the main reason why water treatment
is subcontracted to a specialist.
The market for contract maintenance can be split into manned, mobile and
additional small works. The total value of manned sites was £1,112
million (77% contracts and 23% breakdown). In 2002 over a third of all
manned contracts were labour & materials, which has fallen since 1999.
Semi comprehensive agreements are now more popular than the fully comprehensive
contract, growing by more than 37%.
The ‘UK Maintenance Market’ report was published in January
2004.
It is BSRIA's fifth update of the UK maintenance market. Input received
represents at least 50% of the market.
It is 80 pages long, contains 45 tables and profiles of 27 companies.
The report has already been purchased by 20 companies.
For further information contact Andrew Giles at BSRIA on:
Telephone: +44 (0) 1344 426511
Email: mailto:andrew.giles@bsria.co.uk
Web: http://www.bsria.co.uk/wmi
CBK
Opens the Window to Success
Gloucester-based
CBK has increased its fabrication capacity from four roofs a week to 40
a week since the company's creation in January 2001. CBK was founded three
years ago by Bill Holden and Ken Meyrick, who collectively have over 35
years experience within the conservatory industry, having built and sold
several thousands of roofs.
CBK
says that it credits a major part of its success as a fabricator to K2’s
roof system products. The fabricator also cites K2’s service and
support as key factors in helping it build its reputation, as it is able
to pass on the benefits of technical support and prompt delivery to its
customers.
The company has also instigated several in-house practices which it believes
save both time and money for installers on-site, including cutting tie
bars and jack rafters to suit, fixing and sealing bolster bars, insulating
box gutters and scribing all caps on Victorian roofs. The company also
provides bespoke gutters and angles and supplies welded endplates and
sleeves on joints of box gutters to prevent any leaks.
Bill Holden, Director of CBK comments: ‘At CBK, we believe in going
the extra mile to keep our clients happy and this is the secret of our
success. Our use of the K2 roof system, which has developed an impressive
reputation throughout the market as well as our own emphasis on best practice,
allow us to provide customers with the best possible quality of product
and service and ensure they will return to use our services time and again’.
Sally Fielding, Managing Director of K2 comments: ‘ We would like
to congratulate CBK on its phenomenal success. K2 believes in providing
a quality product and impeccable service and we are delighted to supply
our product to a fabricator who so clearly shares our aims’.
Tel: 01204 554554
Email: mailto:enquiries@k2conservatories.com
Web: http://www.k2conservatories.com
Newstead
Offers Double the Security with TSL Casement Locking System
To
offer installers the opportunity to sell higher security products, in
line with its achievement of the Secured By Design award, Newstead has
launched a TwinCam security lock (TSL) with dual action locking system.
Designed and manufactured by hardware company, Roto Frank, the lock has
undergone rigorous indicative testing. Results show that windows equipped
with TSL have high levels of security.
TSL
offers more than twice the performance requirements of BS7950. Each locking
point has twin mushroom cams which are driven from opposing directions,
when the handle is turned, into individual recesses at either side of
a double entry striker. The gear device has a smooth mechanism. The result
is an extremely secure closure. The dual locking action also means that
any attempt to force one cam out of its closed position merely pulls the
opposing cam deeper into the striker.
‘Not only does the lock have all these features,’ enthuses Adrian
Locker, Director and General Manager of Newstead, ‘it is also easier
than other shootbolts to install thanks to the single face fixing. As
well as offering ultimate peace of mind to home owners, Newstead installers
will also be able to sell customers on the benefits of TSL’s enhanced
corrosion resistance and a ten year guarantee.’
‘This is a next generation locking system,’ says Adrian Vicker,
Operations Director of Roto Frank. ‘We are delighted that Newstead
recognises the unprecedented security, installation and sales benefits
TSL provides for their customers. Forward thinking trade fabricators such
as Newstead Trade Frames are giving their installer customers a competitive
advantage with such an innovative product.’
Tel: 01782 641 642
Jiangshu
Changshu Glass Material Co, a large glass supplier both in China and some
other countries, is now looking for partners in the UK and Europe. The
company consists of three advanced glass production factories in China.
'Under strict quality control, our products have won a lot of awards from
our country and other countries.' says the company.
The R&D department designs up-to-the-minute styles which conform to
the world's changing trends. The company says that its products sell well
all over the world, especially in European and South-East Asian countries.
'Customers own designs and OEM orders are welcome. We believe that through
our joint efforts they will also meet with a favourable reception in your
country.' says Mark Chung from Jiangshu Changshu Glass Material Co.
Contact: Mark Chung
Jiangshu Changshu Glass Material Co., Ltd
No.19 JiaXing Yushan Changshu
Tel: +86 21 57157408 57157409
Email: mailto:hci_9@eyou.com
Alcan
to Create New Rolled Products Company
Alcan
Inc. recently announced its intention to pursue a spin-off to its shareholders
of substantially all of the rolled products businesses held by Alcan prior
to its acquisition of Pechiney. The proposed distribution will create
the world’s largest aluminium rolled products company. Alcan will
continue to focus on developing its portfolio of low cost alumina and
primary aluminium businesses as well as its high value-added specialty
packaging, aerospace and engineered products businesses.
'The creation of this new company is further evidence of Alcan’s
focus on maximising value and profitable growth. The transaction reflects
the different business characteristics of the new company and those of
the on-going Alcan. It also provides our shareholders with two distinct
investment alternatives and increased dividend flows,' said Travis Engen,
president and chief executive officer of Alcan Inc.
'The new company, to be named later, will be the world’s largest
aluminium rolling business by revenue and production volume. It will enjoy
market leadership positions in the Americas, Europe and Asia, and benefit
from modern, high-quality manufacturing assets, best-in-class technology
and a team of talented employees. It will be a leader in the beverage
can, automotive sheet, foil-stock, lithographic sheet, painted sheet,
and industrial products markets covering a wide range of consumer and
industrial applications. Based on a business model more appropriate to
its nature as a metal converter and tailored to its specific markets and
customer relationships, the new company will be capable of returning substantial
value to shareholders. It is expected to deliver strong and stable cash
flows from a financial profile that is relatively unaffected by changes
in metal prices.'
The plan is for the new company to be domiciled in Canada with its executive
office in the United States. Applications are planned to list the shares
of the new company on the New York and Toronto stock exchanges. It will
have approximately 10,000 employees worldwide.
The on-going Alcan, with its global headquarters and executive offices
in Montreal, Canada, will continue to have a leading position in bauxite
and alumina, the world’s largest share of low-cost aluminium production,
a strong and growing engineered products business with a significant presence
in the aerospace industry, as well as a world-leading flexible and specialty
packaging business. The characteristics of Alcan’s on-going portfolio
of businesses are highly complementary in terms of their cash generating
capabilities and profitable growth opportunities as well as their relative
sensitivity to economic cycles.
Following the separation, Alcan will have 78,000 employees globally
and revenues of approximately US$20 billion.
Commenting on the timing of the proposed transaction, Mr. Engen stated:
'With the Pechiney acquisition completed, the circumstances are ideal
for executing a transaction of this nature and unlocking value for our
shareholders. We will be able to pursue our post-acquisition integration
efforts with increased effectiveness and no material impact on our projected
synergies. Equally important are the opportunities it creates for our
employees. In addition, the transaction, as structured, is expected to
meet our undertakings with the European Commission and create potential
new solutions to our U.S. divestment obligation.'
Brian W. Sturgell will become the chief executive officer of the new company.
He has spent virtually all of his 33-year career in the aluminium business
and has been with Alcan for 15 years. Ted Newall will serve
as the new company’s non-executive Chairman of the Board. Mr. Newall
has been a member of the Alcan Board of Directors since 1985 and was formerly
chief executive officer of Nova Corporation. Additional members of
the new company’s executive management along with its independent
board of directors will be named in due course.
'I am delighted with the prospect of leading the new company, which will
be a truly unique enterprise with technologically advanced, low operating
cost assets and a global leadership position in rolling,' Sturgell said.
'With over US$6 billion in sales, and significant scale in all of
its major markets, the new company will be the only one of its size and
scope focused solely on the rolled products end markets. I am looking
forward to the opportunity to enhance the new company’s competitive
position as a standalone company and have no doubt that we will be able
to continue to offer unparalleled service to our customers. With the new
company’s committed and experienced team of employees, I am sure
that we will be able to continue to deliver excellence in product quality
and customer service, thus creating significant value for our customers
and our shareholders.'
The intended spin-off will be in the form of a pro-rata distribution of
common stock of the new company, which is expected to be available on
a tax neutral basis to the majority of Alcan shareholders. The capital
structure of the two companies at the time of the spin-off will be optimised
according to their respective financial requirements and opportunities.
As part of the transaction, it is contemplated that the new company will
raise external debt that will be utilised to refinance certain indebtedness.
As a result, there will be an improvement to the credit profile of on-going
Alcan, which will enhance its ability to fund profitable growth. In addition,
it is intended that Alcan will retain its current dividend policy, and
that the new company have its own dividend policy in place at the time
of the transaction.
The transaction is contingent upon a number of conditions including the
receipt of required regulatory approvals, definitive approval by Alcan’s
Board of Directors, and Alcan shareholder approval. Assuming these conditions
are met, Alcan expects to complete the transaction before year-end.