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Ultraframe Loses to Burnden

The Burnden Group Plc has announced that on 27th July judgement was delivered in its long-running legal battle with Ultraframe and that Ultraframe has failed in most of its claims.

The case dates back to 1998.  In total Ultraframe brought 4 actions against The Burnden Group and its directors Gary and Sally Fielding as well as associated companies K2 Conservatory Roof Systems Ltd, BCP Plastics Ltd and Burnden Holdings (UK) Ltd. Two of these actions were brought in the name of companies (Northstar and Seaquest) which are in insolvent liquidation and in which Ultraframe paid the Liquidators to bring the actions. 

One of the 4 actions was dismissed in 2003 and the remaining 3 actions were heard in a 6 month trial between November 2004 and May 2005. Of these 3 actions, one was struck out at the start of the trial in November 2004 and a second was dismissed in its entirety at the end of the trial.

In the remaining action there were three major claims:

(a) Ultraframe was seeking to set aside a licence agreement which was granted by Seaquest to Burnden in 1999, so it could pursue a claim that the Burnden conservatory components were infringements of Seaquest's Intellectual Property Rights. This claim was rejected and the licence agreement was found to be valid, as Burnden had always claimed.

(b) Ultraframe was claiming the entirety of the Burnden conservatory business or an account of all of Burnden's profits, on the basis of alleged misconduct by Mr Fielding whilst acting as director of Northstar and Seaquest. This claim was also wholly rejected.

(c) Ultraframe was seeking a declaration that various secured debts under which Seaquest and Northstar owed Mr Fielding a total of £400,000 did not exist. This claim was also rejected. Mr Fielding was held to be owed £400,000 by Northstar and Seaquest, which amount is secured by charges over all the assets of those companies.

The only issues upon which Ultraframe succeeded were minor issues about compensation due to Seaquest for overcharging by way of management charges and commissions. The total value of this claim is yet to be determined but cannot exceed £172,000. As a result of Mr Fielding’s status as secured creditor, any amounts held to be due to Seaquest will be repayable to Mr Fielding in any event, and will not be available to Ultraframe. There is no finding that damages are payable.

All of the claims brought by Ultraframe against Sally Fielding (pictured above), K2 Conservatory Roof Systems Limited and Burnden Holdings (UK) Limited failed in their entirety.

Mr Fielding said 'Whilst I am personally disappointed by certain factual findings relating to me, I am extremely happy for the company and everybody associated with it that Burnden's position in this litigation has been totally vindicated.'

Court Ruling: Ultraframe's View

On July 27th the High Court delivered a judgment in the legal case between Ultraframe and The Burnden Group and Burnden Conservatory Products ('Burnden'), Burnden’s founder Gary Fielding, and his wife Sally Fielding and others. This case arises from the alleged infringement of intellectual property rights owned by Ultraframe’s wholly owned subsidiaries Northstar & Seaquest.

Summary of findings

1. Ownership of Ultraframe IPR upheld in court
It has been established that the overwhelming majority of the Intellectual Property Rights (IPR) in the disputed roofing system belong to Northstar and Seaquest and ultimately therefore the Ultraframe Group. Burnden are liable to pay licence fees in respect of past use and have been obliged to undertake to the Court to take a licence from Northstar and Seaquest relating to any future infringing use of the IPR, the terms of which will be determined at a later date.

2. Burnden/Fielding
The Court found Burnden and/or Mr Fielding liable to compensate Ultraframe’s companies in respect of management charges wrongly levied to the companies.

3. Summary
'Our prime consideration is to protect our Intellectual Property and as such we see this result to be a positive one for our business.

'Nevertheless, we are disappointed with certain parts of the Judgement in so far as the potential recovery of damages is concerned.'

It is important to note that this is a First Instance decision (unlike the recent Court of Appeal rulings against Eurocell and Burnden) and as a result both parties will have the opportunity to seek leave to appeal in October.

Vanda Murray OBE, Managing Director, Ultraframe (UK) Ltd: 'We are pleased that our Intellectual Property Rights have been upheld. This underlines Ultraframe’s determination to robustly defend our long term investment in the industry, protecting the best interests of our employees, customers and shareholders.'

Pinnacle 500 Statement

Eurocell says that it is able to continue to offer a low pitch conservatory roof as a replacement for the company's Pinnacle 500, which has been withdrawn from sale due to the recent decision by the Court of Appeal.

'In order to maintain the excellent service our customers expect, we will be selling and delivering an established good quality alternative product from our 60 Eurocell Building Plastics trade depots,' comments Eurocell CEO, Patrick Bateman.

'For customers previously buying Pinnacle 500 this solution represents a good alternative backed by the same personal service and excellent deliveries our customers expect.'

Eurocell will continue to offer its bespoke Pinnacle roof system and roofline products through the company's trade depots.

'Although Ultraframe offered the Ultralite 500, we believe the Wendland roof offers a better quality product with a far more customer focused attitude,' says Mr Bateman.

Tel: 01773 842395
Email: mailto:david.wigley@eurocell.co.uk

Deceuninck Sales Rise by 10% in Second Quarter, but UK Declines

Group Deceuninck has announced that turnover rose by 10% to 172m euros during the second quarter compared with the second quarter of 2004. For the full half year this amounts to an increase of about 6% to 297m euros. The turnover development thus remains in line with expectations that sales will rise by 5 to 10% this year. It appears that PVC resin prices have passed their peak. However, despite the slight decrease in Europe, they remain at an historically high level. The exchange rate and turnover from divested activities together had a positive impact of 2.7%. The volume sold rose by 2.4%.

Westem Europe
Sales of Deceuninck products in Western Europe are dominated by the window line zendow®, which is currently being introduced throughout the Benelux and has been very positively received by both architects and end consumers; This has translated into a turnover increase of more than 15%. A similar trend can be observed in France, where Deceuninck is the uncontested market leader and where all Deceuninck window manufacturers have switched over to the zendow® series. Deceuninck has succeeded in expanding its market position in both France and the Benelux. This is also true for Spain, where the vigorous growth of the first quarter continued undiminished, with turnover rising there once again by more than 25%. At Thyssen Polymer, intensive work continues on the ambitious complexity reduction programme and the launch of the window platform line, Elite (which is the equivalent of zendow®).

Thanks to the excellent performance in both the mature markets and the growth markets in Western Europe, Deceuninck succeeded in offsetting the drop in sales in the saturated British and German markets, where sales fell by more than 5%. This is in line with the most recent market information, which forecasts a market decline of between 5 to 10% for the United Kingdom and a further decrease in the total window market of more than 6% for Germany.

Eastem Europe
Sales in Poland continued to suffer from the after-effects of the VAT increase in 2004. Sales only began rising once again in June 2005, although they still remained significantly below the 2003 level. However, the drop in sales in Poland has been offset by sales growth in the Czech Republic and surrounding regions of more than 30%, as well as the sales performances in Russia, which are going according to plan. Preparations for starting up a local extrusion production site in Russia are continuing. The establishments in Romania and Bulgaria also delivered exemplary performances, and with sharply increased sales were able to further strengthen their market position.

The United States
The sale of window systems continued to rise in the second quarter as well. Deceuninck North America concludes the first half of the year with a turnover increase of more than 12% (expressed in USD) compared to the first half of 2004. It is expected that this trend will continue for the remainder of the year.

Once again, Turkey outperformed everyone else. In June, for the first time since its foundation, the turnover of the Deceuninck division Ege Profil surpassed the threshold of 10 million euros. On a quarterly basis, this represents more than a doubling, while for the first half of the year this amounts to an increase of more than 80% compared to the first half of 2004. Naturally, the consoiidation of Winsa played an important role here, but the sharply increased turnover for both the Winsa and Ege brands is attributable in the first instance to a domestic new construction market which continues to perform strongly, stimulated by lower interest rates on mortgage loans.

Wood composite
During the first half of the year, the sale of wood composite decking in the United States amounted to around 4 million USD; however, the start-up of new customers has caused one to fall slightly behind the anticipated plan.

In Europe, the launch of the Twinson®, wood composite products is fully under way. A first project will soon be implemented in Belgium.

Noise barriers
The first half of the year saw a striking increase in sales and a substantially thicker order book for Cyclefoam® noise barriers, made of recyclate from post-consumer rigid PVC building products. The additional tapping of the market segment of industrial construction projects is clearly generating results.

PVC resin prices
Although PVC resin prices in Europe appear to have passed their peak, they remain at an historically high level. During the first half of 2005, the average price was more than 10% higher than during the first half of 2004. In the United States, PVC Resin prices reached their peak in March 2005, and they remained high until the end of June. Resin prices there have increased by more than 25% compared to the first half of 2004.

Deceuninck does not exclude the possibility that PVC resin prices will rise once again in the coming months.

Deceuninck is an integrated group of world format, specialised in compounding, tool fabrication, design, development, extrusion, finishing, gaskets, recycling and injection moulding of PVC-U systems and profiles for the building industry. The company is active in more than 60 countries, has 31 subsidiaries (production and/or sales) and is supported by 3043 personnel, 670 of them in Belgium. In 2004 the Deceuninck Group achieved consolidated sales of 582.1 million euros.

Deceuninck Status Here for the Long Haul

Following the recent announcement of the merger of Deceuninck and its sister company Status Systems the company is reporting positive response to its restructured organisation. Whilst the operational issues were a clear focus the company has also taken the opportunity to structure its sales and customer support teams to offer an improved service to all of its customers.

General Manager Sales & Marketing, Chris Foreman comments; 'As part of the transition into one UK business we have looked closely at our customers needs and how best we can position ourselves to service them. We have a wealth of talented and experienced individuals and we wanted to use their particular skills wisely. We now have a unified Sales and Customer Support team each with clear objectives to help the business continue to move forward'.

Deceuninck Status strategy has been to focus specialised teams to embrace all areas of customer activity and the relative product ranges. This includes the strengthening of its Commercial activities in a new Commercial Department under the direction of Jon Skinner. Window profile customers will be looked after by the general sales team, customer account managers and technical services teams lead by Kevin Warner. Deeplas Building Products sales team continues to be managed by Hazel Wilson. Chris Foreman takes overall responsibility for the sales functions that are all based out of the Calne Head Office.

With so much happening in the marketplace and the news of more companies being offered for sale, the message from Deceuninck Status is very much a statement of clarity and intent.

'Our message is that we are here for the long haul and our customers should be reassured that our efforts as a united force will allow us move forward where others may falter' commented Chris Foreman. 'We are very much aware that some may perceive the merger as leaving us a vulnerable target for speculative attack pre-supposing that we will be forced into scaling down our service or product range. Nothing could be further from the truth and we are keeping our customers continually updated on our plans.'

'Our much loved core products are continuing to provide the life blood of our business that allows us to develop new and innovative products for the future. A good example of this is the 1800 Series Decorative range in Brilliant White which is widely acknowledged as the first and foremost decorative PVCU window & door system. Demand for the product remains consistently high and belies the fact that the system has been available for over twelve years, firmly establishing its reputation as a reliable and consistent product still very much a part of our range.

Foreman continues: 'Some are suggesting we will drop the system and the famous 'Deeplas' brilliant white colour. This simply is not the case, with sales continuing to grow the system remains very much in our plans complementing what is now an even more extensive range of profiles gathered together under the generic ZENDOW brand'.

Chairman's Address to Pilkington AGM

At the Annual General Meeting of Pilkington plc on 28th July, the Chairman, Sir Nigel Rudd, made the following statement:

'As I reported at the time of our Annual Results in May, Pilkington continues to benefit from improvements in operational efficiency and unremitting cost reduction programmes.

Our continuing focus on cash generation enabled the Group to report a further significant reduction in net debt by 31st March. The adoption of a progressive dividend policy is an indication of the Board's growing confidence in the capability of the business to generate cash sustainably.

Over the course of this financial year, our priorities are to maintain momentum on our cost reduction programme, started in Stage 1 of our three-stage 'Cash for Growth' strategy, to complete the rebuilding of our financial strength, begun in Stage 2, and to begin the transition into Stage 3, with targeted investments into profitable growth opportunities.

The Pilkington-constructed fourth float line in Brazil for our South American joint venture is now in full production, following an excellent start-up. A sound base has been established in China as a platform for future growth, with the three Automotive plants now fully integrated into the global Pilkington Automotive business. The joint venture float line in Russia is on target to start production later this year.

Turning to current trading, I would now like to highlight the performance of the main parts of our business in the first quarter of the current financial year:

Building Products
As expected, conditions in most European Building Products markets remain challenging. Energy-related costs are still rising, though the energy surcharge introduced in Europe in November of last year has provided some relief. Significant improvements in manufacturing performance have reduced costs further and as a result our performance is in line with last year.

In North America, economic indicators are improving and strong residential demand has underpinned the good level of industry capacity utilisation and pricing.

The economies in Brazil, Argentina and Chile continue to strengthen and demand for float glass remains robust.

In Australasia, the softening economy is affecting demand as anticipated, though rising transport costs and the weaker Australian dollar have reduced the pressure from imports.

Automotive Glass
At this stage sales volumes of Original Equipment are up on the same period last year, due to the ongoing success of models fitted with Pilkington glazing.

In Automotive Glass Replacement, demand has increased in Europe and remains stable in North America.

Efficiency and productivity levels in both the Original Equipment and Automotive Glass Replacement operations continue to improve across the world, and results generally are ahead of last year.

In summary, the year has started in line with expectations. Pilkington remains on track to begin its transition into the third phase of its strategy over the course of this financial year, and has begun to target investments into profitable growth opportunities in our core business areas.

Saint-Gobain Group First-Half 2005 Results

Consolidated first-half sales for the Saint-Gobain Group (six months ended June 30th, 2005) came in at €16,877 million, up 7.0%, or 7.4% at constant exchange rates. The contribution of the Group’s acquisitions to the growth figure, net of disposals, amounted to €848 million during the period, accounting for a rise of 5.4% in net sales. Like-for-like growth (constant structure and exchange rates) for the period was 2.0%, with 4.1% growth in the second quarter.

Consolidated net income for first-half 2005 advanced 13.9% over the year-earlier period, at €632 million. Excluding capital gains, consolidated net income climbed 10.9% to €642 million, fueled mainly by the improvement in business income.

Performances of the Group’s business sectors:
Overall, despite a difficult first quarter, the Group’s five sectors saw a rise in like-for-like sales over first-half 2005, with most businesses reporting a significant rise in sales prices and, in the second quarter, robust organic growth. Like-for-like second-quarter sales were up 4.1%, on the back of a 0.7% dip in the first quarter. Like-for-like sales for the Group’s Flat Glass and Building Distribution Sectors – hard hit by the severe late-winter weather in the first quarter – rebounded strongly in the second quarter. Overall, the Group’s first-half sales advanced 2.0% on a like-for-like basis (including a +2.4% price impact and a -0.4% volume effect).

Operating income for the Group gained 4.6%, driven by a further improvement in the Building Distribution and High-Performance Materials Sectors.

On an actual structure and exchange rate basis, the Building Distribution Sector reported a strong 13.7% rise in sales, thanks to the first-half contribution of its recent acquisitions, particularly Dahl (consolidated as from May 1st, 2004) and Sanitas-Troesch (consolidated as from March 1st, 2005). A strong upswing in the second quarter of the year (up 5.0% like-for-like), after a slow first quarter due to bad weather conditions, fueled a 2.3% rise in sales. French and Scandinavian markets were the main growth drivers, while Germany and, to a lesser extent, the UK, remained on a downward trend. Operating margin for the Building Distribution Sector continued to improve, coming in at 4.9% compared with 4.8% for the same period in 2004.

The High-Performance Materials Sector reported a 1.4% increase in sales on a comparable structure and exchange rate basis, with growth in volumes and sales prices in the Ceramics & Abrasives Division partially dampened by the drop in sales volumes reported by the Reinforcements Division. The profitability of the High-Performance Materials Sector has further advanced, with operating margin accounting for 11.2% of sales, compared with 10.4% for H1 2004.

First-half sales for the Flat Glass Sector inched up slightly on a constant structure and exchange rate basis, thanks to the upturn in the second quarter. However, increased start-up costs due to the fast expansion of the Flat Glass Sector in emerging countries and Asia in particular, dented profitability.

The Group’s interim consolidated financial statements prepared in accordance with IFRS, which were reviewed by the Board of Directors on July 28th, 2005, are summarised below:

Consolidated first-half sales climbed 7.0% on an actual structure basis and 1.5% based on a comparable structure. At constant exchange rates*, sales were up 7.4% on an actual structure basis and 2.0% on a comparable structure basis. Sales prices rose 2.4% on average, while volumes dipped slightly by 0.4%.

France accounted for 32.7% of total sales, with other western European countries contributing 40.1%, North America 16.1% and emerging countries and the Asia-Pacific region, 11.1%. Business remained buoyant, on a like-for-like basis, in each of these areas, with the exception of western Europe, hampered by the slowdown in Germany and the UK.

First-half operating income advanced 4.6%, and by 4.9% stripping out the currency effects. Operating income represents 8.1% of sales, compared with 8.3% of sales over the same period in 2004. In accordance with IFRS, operating income now includes the cost of stock option programs and the Group Savings Plan, representing a total of €26 million, compared with €23 million for first-half 2004.
This slight dip in operating margin reflects the increased relative weight of the Building Distribution Sector in the Group (despite the further advance in the sector’s profitability, to 4.9% compared with 4.8% for first-half 2004), as well as higher start-up costs due to the fast expansion of the Group in emerging countries. Excluding Building Distribution, the Group’s operating margin slipped to 10.4% from 10.5% in first-half 2004.

The Group’s operations in the US and western Europe reported an improvement in profitability, with the exception of France, where it remained flat. In emerging countries and Asia, first-half profitability was dented by the large-scale investments made over the period.

First-half business income jumped 10.5%, mainly thanks to the increase in operating income and in profit on sales of non-current assets during the period, coupled with the fall in non-operating costs.

Non-operating costs were scaled back slightly, to €108 million from €133 million for the six months ended June 30th, 2004. Non-operating costs include a €54 million charge in respect of asbestos-related claims against CertainTeed (compared with a charge of €50 million in the year-earlier period).

Update on asbestos claims in the United States: some 10,000 new claims were filed against CertainTeed in the six months to June 30th, 2005, on a par with the last two half-yearly periods. Approximately 3,000 mass claims were filed in the State of Kentucky, for which no proof of medical impairment has been provided.

During the same period, some 13,000 claims were resolved (compared with 11,000 over first-half 2004), and 3,000 claims were transferred to an 'inactive docket'. Therefore, the number of pending claims at June 30th, 2005 continued on a downward trend, standing at 100,000 at June 30th, 2005, compared with 106,000 at December 31st, 2004. The average cost of claims settled over the last twelve months was approximately US$ 2,500 per claim, lower than the average cost of settlement at March 31st (approximately US$ 3,000 per claim), due to a more favourable claims mix than the earlier period.

On the legislative front, the bipartisan vote by the US Senate Judiciary Committee on May 26th, 2005 concerning the Asbestos Trust Fund Bill has since prompted much debate between the Bill’s advocates and its opponents. The Bill may be put before the full Senate as from the Autumn.

Outlook and targets: The Group expects the recovery observed in the second quarter of 2005 to pick up pace over the next six months, and therefore confirms, for the full year, its target of 6% growth in operating income at constant exchange rates (average rates for 2004).

Total Approach to Efficiency

The move to a multi-million pound purpose-built 100,000 sq ft factory gave Total Glass the perfect opportunity to plan an efficient manufacturing and delivery strategy from the outset, enabling the trade fabricator to maintain its position as a quality and reliable supplier of windows, doors and conservatories.

Headed by Production Manager David Ogilvie, the management planning team, produced the blueprint for optimum manufacturing efficiencies even before the first turf was cut at the Overbrook Lane site in Knowsley, Liverpool to ensure a totally streamlined approach from order intake to final despatch.

Explains David: 'The new factory was the opportunity to get it right from the start and fulfil our vision of the ideal manufacturing operation which is essential for success in today's rapidly maturing and increasingly competitive marketplace.

'Having outgrown our former premises, the extra space at the Total Complex meant we could plan right down to the final details, from easy and plentiful access with our eight loading bays to the security afforded by storing all stock, including profiles and reinforcing, as well as finished items inside the building.'

'By building in efficiencies throughout the entire process, our manufacturing costs are kept to a minimum and this keeps our prices competitive for our customers,' continues David.

'Excellence in product quality and customer service, together with a dependable five-day turnaround, remains a central focus for Total Glass which has incorporated this philosophy into its entire manufacturing approach at the new factory. The extra space allowed for the creation of a dedicated Trade Centre which takes customers' orders online, by phone or even face-to-face for local businesses.'

The 'modular' manufacturing set-up means that operatives on the six production lines are entirely responsible for their own section resulting in quicker through-put, consistent quality and, crucially, ease of loading for despatch.

Frames are loaded by customer order and geographical area onto vehicles at the end of each day by a dedicated loading shift so the vans can leave promptly at 7am the next day, ensuring customers receive their orders on time, every time.

'Lack of space didn't allow us to do this at the old factory,' says David, 'so now the drivers arrive in the morning and can leave straightaway without having to load up first.' This more efficient systems means drivers and loading staff enjoy a slightly shorter working week, which eventually could be extended throughout the factory.

Installers collecting their frames from the eight clearly-signed loading bays located along the length of the building benefit too from direct and easy access, which in turn has reduced waiting times dramatically.

And last, but not least, fuelling all these efficiencies is the legendary canteen, catering for well over 100 people every day. An army 'marches on its stomach', so the saying goes, and the Total Glass 'troops', along with visiting suppliers and customers, have been taking advantage of the popular facility which has proved a roaring success since it opened for business in February.

'Designing the new factory to our exact requirements has given us the freedom to maximise the potential of our manufacturing capacity to the ultimate long-term benefit of the business, while enabling us to achieve efficiencies that, in the past, we could have only dreamed about,' adds Dave.

Tel: 0151 549 2339
Web: http://www.totalglass.com

Plastmo in Bouyant Mood

Despite difficult market conditions, the Directors of Plastmo Limited Group announce a positive improvement in the Group's performance, compared to that of the last half year, mainly due to an improved contribution from Abbott Group.

Group Managing Director Henrik Jensen comments 'There are many totally baseless rumours about Plastmo, some bordering on fantasy, circulating the industry. Given the current market turmoil, we are doing quite well, and the turnaround in Abbott Group's fortunes will continue to help strengthen this position'.

Composite Doors - It's the Future!

When Shepley launched the Visage® range of composite doors back in September 2004 they were expected to do well but Tim Walker, Shepley's sales director, says that he has been overwhelmed by the response. ‘Although our Visage® composite door is technically superior to many doors on the market, I've been surprised by just how quickly sales have increased. In fact, figures are up to 50 doors per week, proving they really are the next generation of residential doors’, explained Tim.

'So what exactly are the unique features of Shepley's composite door that has led to this exciting response? Certainly one of the key elements is the door's surface. Shepley's coloured and woodgrain composite features a protective skin made from a modified polycarbonate blend - the type of which is used to make helmet visors and police riot shields due to its high impact strength. This skin also offers greater thermal and UV stability than either ABS or PVC.’

Shepley customer, Jim Still, MD of Brampton Windows, supports this view. ‘The main competitive advantage of Shepley's range is the composite materials. The laminated timber core offers a solid feel whilst the compax skin is more durable than PVCu. A common problem with many composites is that they feature a PVCu skin, so dark colours absorb heat and are prone to warping and delamination. Shepley's compax skin provides homeowners with the option of darker door colours safe in the knowledge that the door will last’.

The range also comprises a weather resistant laminated veneer core, which the company says makes it one of the most impenetrable doors with higher thermal and sound insulation on the market. Andrew Young of Abbey Windows says, ‘The Shepley composite door resembles a real timber door but without the maintenance. The design and proportions are more inline with a traditional timber door than any other composite on the market. As our customers often look to replicate timber doors, Shepley's range proves easy to sell’.

Visage composites are available with all the necessary accessories and supplied unglazed with a cassette system, providing the homeowner with an endless choice of 28m glass units, a factor that has found favour with Leeds-based customer Franklin Windows. David Franklin, managing director, commented, ‘Composites are selling exceptionally well. In fact, we've taken the PVCu panel doors out of our showroom to make way for more composites. We particularly like the Visage® composite because it comes unglazed meaning we are not restricted to a small range of glass. Homeowners really can have what they want. And, with prices only marginally more expensive than a residential door with a PVCu panel, I think all homeowners will soon be demanding composites’.

If you would like more information on Shepley's composite door, including product brochure, a demonstration and prices please contact Shepley on 0161 339 2433.

Gloucester Turnaround for Darby

The Darby Glass plant in Gloucester is reporting a period of significant growth. Under a new management team, sales over the last six-month period have soared and are looking set to exceed the target of a 40% increase for the current financial year.

The 46,000sq ft Gloucester factory has a capacity of 2,000 sealed units and 1,000sq metres for single toughened per day, but some 18 months ago output was down and progress was stuttering. However, indications for future growth and development now look good to achieve a projected expansion of 10% per annum over the next three years.

Gloucester's new team is headed by General Manager Matthew Curtis, with Cathy Stephens, Customer Services and Office Manager; Steve Billet, Production Manager; and Phil Jones, Transport Manager. Mark Norcliffe and Lindsay Hanley are responsible for developing sales both in and around the Gloucester region.

Chris Roberts, Sales and Marketing Director at Darby, says, ‘The Gloucester site is now back on track with an impressive increase in sales volume achieved through regaining customers and bringing on new business.’

Investment at Gloucester has recently included a fully automated Lisec cutting line. With the plant's soft coat production already up to date, the company's strategy is to recondition the second unit line this year. Most importantly, staff training will be a key initiative to ensure first class skills, consistent quality and service are achieved and maintained.

The Gloucester plant supplies both hard and soft coat IGUs, Darbyclad, Sunergy IGUs, single toughened and Roof-Glas, which is aimed at the premium rate conservatory roof market. Its production capability includes soft coat units to a U-value of 1.1, single toughened plus decorative finishing including Georgian, stains, leads and bevels. A new member of staff with specific design experience in leads and Georgian has been taken on to develop this side of the business.

Chris continues, ‘As well as sorting out the everyday tasks, planning is taking a more medium to long term view. Darby's investment plus the policies and combined drive of the new management team are in evidence empowering the operation to move forward and contributing to our future success at Gloucester.’

Darby Glass was winner of Glass Company of the Year at the recent G 05 Awards, which is an accolade that amply illustrates the recent success of the group as a whole and reinforces its aspirations for the future. Chris says, ‘The benefits of being Glass Company of the Year will be felt throughout Darby Glass, including the Gloucester site, as the company's customers will understand that they are dealing with a group that has been recognised as being the best in its field.’
The site covers the M25 corridor and from Portsmouth to Birmingham, and it is targeting small to medium sized companies handling £5,000 to £50,000 spend per month.

Tel: 01724 280044
Web: http://www.darbyglass.co.uk

Caption: Left to right you have Matthew Curtis General Manager, Kathy Stephens Sales Office Manager, Phil Jones Transport Manager, and in the front Steve Billett Production Manager.

New S&J Conservatory - As Easy as ABC

Conservatory manufacturer S&J says that its Advanced Building Concept (ABC) will cut the time and cost of the average conservatory installation. ‘For the installer, it means little mess, easy, one day installation and a top quality conservatory, coupled with a huge potential for high profits.’

Available in white, rosewood and light oak, the ABC conservatory is fully factory finished, pre-fabricated and ready to assemble when delivered on site. It can then be installed in one day by the use of simple lock and bolt together technology.

The roof is designed to take polycarbonate or high performance glass. The windows and doors are glazed throughout with toughened safety glass and include Low E as standard. The fully insulated walls and floors have good thermal and acoustic properties.

The ABC conservatory sits on screwpiles, which provide an easy and cost effective alternative to conventional foundations. Among the many advantages of this type of construction method is its ability to reach the required depth in difficult conditions such as clay or soft sand. And because there is no need for conventional trenches, there is no need to hire skips to dispose of waste.

ABC's base is made of extruded aluminium, which can be easily levelled, once complete. The installed floor simply drops in between the joists.

The structural composite walls have a brick like appearance on the outside with a paint ready surface on the inside. The walls are attached and assembled by means of cam locks, each of which has a five tonne load capacity.

The window and door frames are installed with a locking nut system eliminating the need for de-glazing and re-glazing. The top quality frames are supplied by S&J's sister company John Fredericks Plastics and come with high security hardware.

The roof, designed using the latest technology, can be assembled in under an hour.

Paul Smith, general manager of S&J, said: ‘The new concept is the result of a year's dedicated research and development culminating in extensive testing at the Building & Research Establishment (BRE). We are delighted with the response so far and know we have a product that will benefit both the public and installers alike!’

S&J is marketing the ABC conservatory through a network of distributors on a nationwide basis. There are currently some distributor vacancies still available. The company is offering Saturday morning training sessions at its Northamptonshire headquarters and at selected distributors throughout the UK, where installers can learn how to assemble the conservatory in just two hours. Full marketing and sales support will also be provided by S&J.

Tel: 01604 585900
Email: mailto:paul@sandj.co.uk

KAT UK Travels to France on Fact Finding Mission

Representatives from KAT UK, a supplier of patio doors and sash windows, recently crossed the channel on a fact finding mission to France.

Managing director – David Richards, general manager – Jonathan Sheard, sales director – Paul Randall and production manager – Dave Morgan arranged at two day trip to French fabricator, ISOPLAS, in order to see if they could pick up any innovative ideas that could be replicated at KAT UK’s headquarters in Macclesfield.

Commenting on the trip David said: ‘Our stay in Harfleur was very interesting and we were grateful to ISOPLAS staff to have given us their time. We looked at the company's machinery, factory floor set up and processes and were delighted to discover that KAT UK could match it in every way.

‘However, it’s always interesting to see how other European companies work and we will endeavour to go on more trips in the future to find out if there are ways in which we can improve the running of the company.’

Tel: 01625 412558
Email: mailto:sales@katuk.co.uk
Web: http://www.katuk.co.u
Caption: (left to right) ISOPLAS representative, Dave Morgan, Paul Randal, Jonathan Sheard and David Richards

Small Doors Make Big Impact for New World

Mini-Apeer doorsets are opening new sales opportunities for fabricators. Door manufacturer New World Developments is producing small versions of its double-skinned GRP door Apeer, so that sales teams can easily transport a fully working model to any venue for close scrutiny.

Each mini-Apeer has all the features of its real-size partner. All styles are manufactured with a matching integral framing unit for perfect fit and aesthetic appeal. The grained effect and distinctive moulding or ‘pip’ detail is also shown. The traditional look and feel has been replicated as well as all its thermal, durable and security properties. Reinforced with aluminium and wood free, the company says Apeer will not rot, warp, swell or shrink.

The mini-Apeer glazed doors include the patent pending, triple-glazed glass unit which is difficult to remove externally as it is secured into the door with a patent pending grooved innovation and no unsightly fixings. Original glass designs are by the in-house team.

Customers can now see, close-up, how good Apeer looks; they can feel the warm grain and examine the stringent standards that New World has set itself. Full-size doors are available in a choice of black, white, blue, green, red, mahogany and light oak finish embedded into the GRP resin.

Using an experienced research, production and technical team the company says that it has designed the best possible doorset for today’s tough urban environment. 'Apeer has achieved PAS 23 and 24 as well as Secure by Design and the triple construction is proving a sound defence against intruders and a beautiful asset to any discerning home.'

Tel: 028 2563 2200
Email: mailto:linda.tomb@nwd.uk.com
Web: http://www.nwd.uk.com

Scottish Roofing Contractors Fined for Collusive Bidding

Six roofing contractors have been found by the OFT to have agreed to fix the prices of flat roofing services in Western-Central Scotland through collusive tendering. They have been fined almost £260,000 in total (reduced to about £138,000 by leniency).

The parties (see note 1) were found to have been involved, to varying degrees, in a series of individual agreements and/or concerted practices in tendering for flat roofing contracts from 2000 to 2002 in breach of the Chapter I prohibition of the Competition Act 1998.

The contracts affected were for felt and single ply flat roofing services. The range of customers affected were diverse, including a hospital, a school and several banks.

The OFT concluded that the parties' collusion in setting tender prices was intended to restrict or distort competition and meant that buyers were unable to obtain competitive prices when buying flat roofing services.

Sir John Vickers, OFT Chairman, said:
'Collusive tendering deprives customers of the benefits of competition. In this case a hospital, school and council tax payers were disadvantaged by these anti-competitive agreements.'

The decision is one of several by the OFT concerning collusion in the supply of roofing services. In March 2005, the OFT issued two decisions relating to roofing services: mastic asphalt flat-roofing contracts in Scotland, and felt and single ply flat-roofing contracts in the North East of England. An earlier decision, issued in March 2004 relating to flat roofing contractors in the West Midlands was recently upheld by the Competition Appeal Tribunal. The OFT is continuing to investigate other allegations of collusive tendering in relation to flat roofing.

Agreements or concerted practices between businesses that fix prices and share markets by way of collusive tendering are among the most serious infringements of the Competition Act . Financial penalties are being imposed on parties, subject to the operation of the policy to give lenient treatment for undertakings coming forward with information in Competition Act cases.

In line with the OFT's leniency policy Pirie Limited has been granted 100 per cent leniency in recognition of the fact that Pirie was the first party to apply for leniency and volunteer information in connection with the OFT's pre-existing investigation in this case. In addition, due to the information that it gave in relation to this investigation, Pirie was also granted an uplift under 'leniency plus' for the OFT's recent decision concerning mastic asphalt flat-roofing contracts in Scotland. Walker has been granted 45 per cent leniency. The financial penalties on those parties are being reduced accordingly.

Construction and housing markets form one of the OFT's current priority areas of work.

Note 1. The businesses and number of infringements involved in the OFT investigation (fines in brackets) were:

* Pirie (including Pirie Limited, Pirie Group Ltd and Pirie & Co (Paisley) Ltd), involved in seven infringements (£85,774 reduced to zero by leniency)
* W G Walker & Company (Ayr) Limited, involved in five infringements (£76,194 reduced to £41,907 by leniency)
* Advanced Roofing Ltd, involved in one infringement (£1,963)
* Geo. Brolly & Co (Roofing) Ltd, involved in three infringements (£22,239)
* Bonnington Contracts, involved in one infringement (£45,187)
* McKay Roofing Ltd, involved in two infringements (£27,219).

Omnico Just Keeps Growing

Omnico Plastics, the supplier of cellular plastic to the construction industry has announced the opening of the company’s new branch in Abingdon.

The purpose built 4,700sqft warehouse situated on the Fairacres Trading Estate opened on 20th June 2005 and offers excellent road links from the A34, customer parking facilities and a comprehensive stock profile including:

* Own Brand Omniplas fascia, soffit and trims (white and woodgrain), Omniflow rainwater, Omnisoil above ground and Omnidrain underground drainage systems.
* Swish, Kestrel, Celuform and Polypipe.
* Conservatory roof systems Ultralite 500, Uzone, Elevation and prefabricated Ultraframe conservatory roofs manufactured by our in-house specialist roof divisions.
* Tools and ancillaries.

Abingdon is the twenty-fourth branch to join the national portfolio.

‘In today's competitive market we attribute our continued growth to providing commitment to product, value for money and delivering a first class service which is further supported by the planned opening of branch twenty-five in the Autumn.’ says the company.

Expert technical advice together with helpful and efficient service will be delivered by the Abingdon team Greg Baker (Branch Manager), Kieran Carberry (Branch Assistant) and Nick Stone (Field Sales Manager).

The new branch is located at Unit C, Kimber Road, Fairacres Trading Estate, Abingdon, telephone 01235 534401.

For further information on any of the Omnico branches please contact Spencer Priestley on (01473) 461461 or visit the website http://www.omnico.co.uk.

Securistyle Achieves Hat Trick of Hotel Success

Window hardware manufacturer Securistyle has achieved a hat trick of hotel success with the installation of commercial window hinges in three luxury Dubai hotels.

Securistyle's Parallel hinge system has been installed in the Grand Hyatt and the Shangri-La hotels and the Sterling top hung heavy duty hinge system has been fitted in the Fairmont Hotel as well as the Dubai Marina.

Dave Walsh, Securistyle's export manager based in Dubai said: ‘Our high quality window hardware fulfils the requirements of commercial developments such as hotels and offices. They are durable, easy to operate and are manufactured from austenitic stainless steel, which is ideal for coastal areas as it is highly corrosion resistant.’

Parallel opening windows provide natural ventilation by allowing a balanced air flow around the entire opening and can also form part of an automated solution for climate control.

The 674 bedroom Grand Hyatt Hotel is an outstanding combination of resort facilities, luxury hotel guest rooms and suites, residential apartments and one of the most advanced conference centres in the Middles East. The architect is Arkitecnic System Company and the window system company is Alico - Sharjah.

Securistyle's Parallel hinges have also been fitted to the 200 metre tall, 43 storey Shangri-La Hotel. The architect was NORR Group Consultants (Canadian) DUBARCH Architects and Engineers and the window system company was Thomas Bennett Gulf LLC (Hartmann - Germany).

Securistyle's Sterling top hung heavy duty hinge system is a good choice for commercial windows, as it has superior carrying capacity. The heavy duty friction hinge is capable of achieving all leading international standards, including the UK BS 6375; the North America AAMA 904.1; the French NFP-20-501; and the Singapore Standard 212:1988.

This was particularly important for the Fairmont Hotel, which is a multi-use complex of apartments and offices. The architect is Khatib & Alami and the window system company is Al Abbar of Dubai.

The Sterling hinge system has also been fitted to a range of buildings within Dubai Marina - an awe-inspiring waterfront development, which has become a 'city-within-a city'. The architect is HOK Canada Inc and the two system companies are Alico (Schico) of Sharjah (phase one) and Al Abbar of Dubai (phase two).

Tel: 01242 221200
Web: http://www.securistyle.com

Fabricators Flock to Schüco’s Innovations Days

Innovations Days are a new initiative by Schüco designed to keep the company’s fabricators fully informed about the company’s latest systems and products. After a successful launch in November last year, the company has just completed its second Innovations session which was so heavily subscribed that the original two days had to be increased to three.

Over the three days, 200 fabricators heard about a range of products including AvanTec, a concealed hinge fitting for Schüco’s aluminium Royal S and Royal C windows, and Skyline, the company’s new unitised façade system which brings the benefits of prefabrication to the construction of the building envelope.

Other new products presented were Firestop II EI 60, a multi-purpose aluminium fire-door; smoke and heat extraction ventilation systems; the RS 160 HI, a large, highly insulated sliding door; the RS 70 HPS, a high performance sliding window; and the RS 114 vertical slider. Fabricators were also given a hands-on demonstration of Schücal+, Schüco’s new-generation estimating software that aims to give fabricators a competitive edge by slashing bid response times and minimising waste in the fabrication process.

A recent Innovations Day has been focusing on the Schüco Jansen range of steel curtain walling and window systems and Schüco is already gearing up for a new series of Innovations Days in November. For full details of dates and content, fabricators should contact the Marketing Department, Schüco International, Whitehall Avenue, Kingston, Milton Keynes MK10 0AL. Tel: 01908 282111 or visit the website: http://www.schueco.co.uk

Cash for PVC Waste with Recovinyl

Window companies can now cut the costs of disposing of old PVC window and door frames under a new scheme aimed at promoting greater recycling of post-consumer PVC waste. It also covers ancillary PVC products such as roofline products, cladding, shutters and blinds.

Recovinyl is a practical scheme offering real financial incentives to installers who are encouraged to dismantle and recycle old PVC frames, instead of sending them to landfill which is fast becoming an unattractive, expensive and increasingly unavailable option.

All the UK's 8,000-plus window installation companies are eligible to register for free. The scheme removes barriers to recycling by subsidising installers for the additional costs of dismantling, sorting and transporting separated PVC waste, as well as providing access to accredited recyclers.

The UK is one of four countries taking part in the Recovinyl scheme, which is funded by Vinyl 2010, the PVC industry body formed to demonstrate commitment to sustainable development amid growing pressures to recycle all types of post-consumer building materials.

Backed by the British Plastics Federation, the scheme aims to ensure a steady supply of post-consumer PVC waste for recycling and to help deliver the Europe-wide Vinyl 2010 commitment to recycle 40,000 tonnes of post-consumer PVC by 2010. Recovinyl aims to recycle 1,600 tonnes of post-consumer PVC from the UK alone during 2005. Higher targets are set for 2006 and beyond.

Recycling PVC waste is also a key part of the Government's environmental sustainable objectives, under which higher standards are established for waste disposal and use of materials. These will inevitably have an impact on how companies deal with their window waste and force the industry to become 'greener'.

One of the biggest challenges in encouraging greater PVC waste recycling by installers has been overcoming resistance due to the increased costs associated with frame deconstruction, segregation and transportation. Operating in a competitive market and on tight margins, installers have traditionally taken the easier option of landfilling their PVC window waste.

However, the rising cost of landfill disposal is making this an increasingly unviable option. ‘Attitudes have to change if the PVC industry is to have a sustainable future,’ comments Roger Morton of Axion Recycling, the scheme's project managers and technical advisors. ‘However we recognise funding is an important motivational factor too, hence the launch of this scheme that offers a practical solution with tangible rewards for recycling.

‘We subsidise those who collect PVC waste and send it to accredited recycling companies. These payments encourage recycling of PVC on an industrial scale by making up for the higher cost of recycling. By participating in the PVC recycling initiative, companies benefit immediately in terms of reduced disposal costs through financial incentives to divert waste material from landfill.

‘As deconstructed frames take up less space in skips, fewer skips are required, also saving money. The promotion of their 'green' credentials can also help window companies win more business as consumers increasingly seek out firms with environmentally-friendly business practices,’ explains Roger.

How the Recovinyl scheme works
To be eligible for help in reducing their costs, window companies must first register as 'members' of the scheme. This can be done for free at http://www.recovinyl.com. Members can then make commercial and practical arrangements with an accredited local recycler of their choice to deliver their waste PVC waste.

Dismantled post-consumer frames can either be taken to a participating waste transfer station or sent direct to a PVC recycling company.

Data on the amount of delivered PVC waste is logged every month onto a members-only section of the website. Once confirmation of the waste shipment has been verified by Recovinyl, grant payments are made direct to the member's bank account.

As well as financial aid, Recovinyl offers technical support and access to accredited recycling companies throughout the UK to make the recycling process easier for participants, wherever their location.

‘According to Government figures, given current trends in window design and usage over the next ten years, it is predicted that 89,000 tonnes of PVC window waste will be produced each year. It is therefore in the interests of window companies and the PVC industry as a whole to encourage greater recycling of this sustainable material and protect our natural resources for future generations,’ adds Roger Morton.

Further information on the Recovinyl scheme is available at http://www.recovinyl.com or from an information helpline Tel: 0870 240 2416 Fax: 0870 240 2417. Alternatively contact Axion Recycling http://www.axionrecycling.com or Tel: 0161 426 7731

Tioxide Europe Fails in CGU Claim

A claim for an indemnity under a 'claims made' liability insurance policy failed where the Claimant could not establish that it had suffered 'loss' as defined in the policy. The Claimant was not entitled to aggregate the claims made against it in the absence of an aggregation clause and where the presence of a £10,000 deductible eschewed such aggregation.

The Claimant manufacturer, Tioxide, sought an indemnity from CGU, the defendant insurers, who subscribed to excess layer liability insurance policies for the policy year June 1996 to June 1997, written on a 'claims made' basis.

Indemnity was claimed in respect of all claims (including future claims) made against Tioxide arising from the discoloration of uPVC products manufactured and sold by others which had included a pigment supplied by Tioxide. The pigment had caused a small proportion of uPVC products to discolour, as a result of which Tioxide had been liable to several manufacturers for loss and damage.

Tioxide were insured under a Global Liability Policy against claims first made against it for an indemnity on the primary layer. Tioxide also had similar first and second excess layer policies.

CGU argued that Tioxide's claim was excluded by the terms of the policy because the claims in respect of which Tioxide sought an indemnity were not 'on account of Property Damage', nor was the claim for 'Loss' within the meaning of the policy definitions. The policy covered claims brought against Tioxide for 'damages on account of … physical injury to … tangible property … resulting from each Loss'.
'Loss' was defined as 'an accident, including continuous or repeated exposure to the same general harmful conditions' - in short, the loss had to be some kind of accident.

The Judge held that 'physical injury' included an unwanted physical change in the property (i.e. discoloration), even if the change was not permanent, provided that it impaired the value or usefulness of the property.

Further, it was no bar to Tioxide's claim that the indemnity sought was in respect of economic loss, rather than actual damage to property (those claiming against Tioxide were not those whose property had suffered physical injury, but rather those who were liable to indemnify others on to whom the uPVC products had been sold). The definition of 'Financial Loss' covered economic loss arising from damaged property and was wide enough to encompass claims for the cost of repair or replacement of discoloured products.

However, Tioxide's claim failed as the definition of 'Loss' required a unifying event which could be pinpointed as the 'accident' to bring all of the different claims against Tioxide within a single claim for indemnity. Tioxide's 'error' in (1) supplying a harmful pigment which caused discoloration; or (2) exposing its customers to the harmful pigment, could not, in the ordinary course of language, be described as an 'accident' or a 'continuous and repeated exposure to the same general harmful conditions'.

The Judge held that Tioxide was trying to make a wide aggregation clause out of the definition of 'Loss' when that was not the purpose of the definition. Fatally, the policy did not contain an aggregation clause entitling Tioxide to aggregate all of the claims from the same originating cause. On the contrary, it contained an individually agreed deductible of '£10,000 each Loss without aggregate' - this suggested that there had been a deliberate intention to exclude claims of that size or less. The effect of this was that, if the discoloration itself was regarded as the 'accident', there would be no cover as each individual claim would be excluded by the deductible.

Tioxide's claim further failed as the policy excluded cover for property damage which was 'expected' by Tioxide: Tioxide knew at the time it was supplying the pigments that they may cause discoloration of the uPVC products and that claims were likely to be made against it as a result. That Tioxide did not know why the discoloration was occurring, and that discoloration would only occur in a limited number of cases, did not change the basic fact that damage was expected. It is noteworthy that the Judge stated that 'expected' should be read literally: Tioxide must have expected the damage - negligence, however bad, would not suffice.

Finally, Tioxide's claim also failed as it had not correctly notified the insurers of the excess policies as required for claims made against Tioxide subsequent to the policy period.

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