Nick
Gale Given Notice as Ultraframe Profits and Share Price Tumbles
Ultraframe
PLC has announced it is giving its UK managing director notice as it warned
first half profits will be significantly lower than a year earlier and
that full year results will fall short of management expectations. Shares
dropped 15% to 194p on the announcement and analysts cut their profit
forecasts by as much as 20%.
The company said it is taking action to turn itself around and that it
is confident in the long-term future of the group. Despite the expected
fall in profits, the group said it expects to pay unchanged dividends
for the current year.
Nick
Gale, managing director of Ultraframe (UK) Ltd, will step down from the
group's board with immediate effect and has been given notice under the
terms of his contract. The group said it is seeking a replacement to head
the UK business, but in the meantime group chief executive David Moore
(pictured)) will take direct responsibility for the UK operations.
'The board is confident that appropriate measures are being taken in both
the UK and the US to address the market conditions being faced by the
group,' the company said in a statement.
In the statement made at the Ultraframe Group’s AGM on 23rd January
2004, the company said turnover from continuing operations in the UK was
down 8 pct from a year earlier in the first quarter of the current financial
year and that in North America, first quarter dollar sales in the group's
core sunroom business were 3 pct up.
The Board had previously drawn attention to the challenging conditions
in the UK market and its plans for developing the US market. At the AGM,
the Board also reiterated its view that the outlook for Ultraframe in
2004 was unchanged, with growth in the US not anticipated to compensate
fully for a decline in UK sales. Sales in both the UK and US have, however,
declined significantly in February, leading the Board to conclude that
half year profits will be significantly less than those achieved in the
first half of the previous financial year.
UK
The group said trading conditions in the mainstream market segments, that
account for the majority of Ultraframe’s UK business, remain sluggish.
The Company suffered a significant decrease in sales in February compared
to the same month last year, which combined with January led to a decline
of 16% on a comparative basis for the first two months of the second quarter.
Overall, the year on year comparative trend for the first five months
of this financial year was down 11%.
The smaller budget segment of the market continues to see higher growth,
with intense competition and customer churn as market participants compete
aggressively for market share. Uzone, which Ultraframe has developed specifically
for this market, will be competitively priced and is expected to gather
sales momentum in the second half, as previously announced. Other products
targeted at this budget segment will be launched during 2004. Finally,
given the strength of the Group’s intellectual property portfolio,
the Company will continue to protect vigorously its intellectual property
rights and to pursue strongly any infringements of its products.
North America
Core sunroom sales fell significantly in February in North America and,
combined with January, resulted in a comparative decrease of 6% for these
two months and flat comparative sales for the first five months of the
year. Significant investment has been made in the business to support
efficiency, scalability and to provide a platform for sales growth. First
half overhead includes certain non-recurring items, together with set
up costs of around $1m for Company-owned retail stores. Accordingly, the
Board expects this business to report a small dollar loss for the first
half.
The
Board is, however, encouraged by the progress in the Company-owned stores
which generated dollar sales in the 2003 financial year representing some
10% of core sunroom sales. Sales levels in Company-owned stores in the
first five months of this year were running around double that of the
equivalent period last year. With the recently opened San Antonio store
and two further stores to be added in the second half, the Board expects
this comparative rate of growth to continue throughout the year. Costs
are being actively managed and the Board expects only a slight increase
in second half costs over the comparable period.
However, the work on improving the franchise base is taking longer to
deliver sales growth than originally anticipated. Consequently, the Board
is reducing its expectations for turnover growth for the full year and
now anticipates that dollar profits for this business for the full year
are likely to be slightly lower than those of last year.
Burnden
Group Acquires Foothold in DIY market
The Burnden Group plc has extended its interests into the DIY multiple
sector with the acquisition of Cestrum Conservatories Ltd. The acquisition,
which was completed on 27th February, is part of The Burnden Group’s
ambitious growth strategy for K2 that has seen the conservatory roofing
system manufacturer add K2 Glass and K2 Window and Door Systems to the
portfolio during the past year. The company is now in the process of launching
K2 Architectural Systems for the commercial sector and, with the addition
of Cestrum, will have a valuable complete conservatory offering through
the large DIY multiples.
Explains Managing Director of K2, Sally Fielding: 'We have always been
a dynamic and innovative company and have achieved phenomenal organic
growth over the past four years. We have now grown to a size that allows
us to develop even further and this acquisition will play a pivotal role
in the diversification of our market offer and the development of our
product range. As we continue to pursue our strategy for controlled expansion
this acquisition will be a key driver for development of additional market
sectors.'
Formerly part of the Heywood Williams Group, Cestrum Conservatories was
a customer of K2 prior to the acquisition and will give the company a
continued presence in the important DIY multiple sector. Cestrum will
continue to trade under its existing name and remain under the direction
of Eamon Kavanagh as MD.
Comments Eamon Kavanagh: 'K2 is a hugely successful company with a clear
growth strategy and an enviable track record of achieving its goals. They
are the perfect parent company to realise Cestrum’s potential in
the conservatory market.'
The acquisition of Cestrum will provide a further catalyst for growth
for K2, which is part of The Burnden Group. The Group now employs more
than 400 people and has consistently been named one of the fastest growing
companies in the North West.
Laird
and Emap Join Sponsors and Jack Dee to Present G 04 Awards
The
G 04 Awards received a fitting boost, when Laird Security Systems joined
the ranks of the event sponsors, along with Glassex and GPT show organisers
Emap Maclaren. This news, however, was put slightly in the shade when
it was revealed that comic, actor, and Celebrity Big Brother winner Jack
Dee had agreed to act as host for the Awards Presentation Gala Dinner
taking place at the ICC on June 18th.
Being staged in conjunction with the GGF Annual conference, the G 04 Awards
is now in full swing and entries are being requested for 10 different
categories relating to the glass and glazing industry. An on-line entry
facility will be available on the G 04 Awards web site, which goes live
on March 11th at http://www.g-awards.com
or you can call Tony Higgin on 01923 461527.
Other sponsors include Glass and Glazing Federation, Promac Group, Veka
Plc, Wendland Roofs, FENSA, and WHS Halo, while the event is being supported
by the following industry trade journals Glass and Glazing Products, Window
Industries, Window Fabricator and Installer, Fenestra Journal, FGI and
of course The Gl@zine.
Former
Pilkington European Marketing Boss Launches Consultancy
Stephen
Lipscombe, who for the last eight years has developed and shaped Pilkington’s
image and marketing services throughout Europe, including the launch of
Pilkington Activ™, has now launched his own operation to offer similar
services to other organisations.
His
company, Logic Chain Marketing Communications, has been formed to provide
marketing and technical communication planning and campaign expertise
to clients primarily within the glass, glazing and associated industries.
Services will include the review and audit of existing marketing operations,
the development of corporate and company image, and the development of
communications plans at both strategic and tactical levels.
Having implemented a range of activities and services for Pilkington including
the company’s web site and E-Commerce operations, technical product
and software CD ROMs, and CE Marking fulfilment throughout Europe, Lipscombe
will offer similar services to others through Logic Chain. Strategies
developed by Logic Chain on behalf of clients may then be fulfilled through
established specialists, with services including market research, creative
and web design, public relations, production of electronic and paper-based
marketing materials, and exhibition design and build.
Lipscombe commented: ‘After more than 25 years in a number of marketing
and commercial roles in top level consumer and business-to-business environments,
I now have the opportunity to offer my experience to others, and to enjoy
a broader variety of challenges. Top level marketing need not be the exclusive
domain of large corporations.’
Contact: Steve Lipscombe
Tel: +44(0) 1744 737767
Mob: +44(0) 7834 181061
Email: mailto:logic-chain@supanet.com
After
selling the Stuga Flowline cutting and prepping centre successfully in
Northern Ireland for four years, Stuga has now agreed a deal for a Flowline
with a customer in the Republic.
Murnane and O’Shea Ltd. is based in the beautiful Bantry Bay area
about one hour west of Cork. As a very successful building company it
has been steadily expanding its PVCu window fabrication business and is
now having to buy in frames to supplement the company’s own production.
On completion of a new building, a major expansion of the PVCu business
will be commenced with the Stuga Flowline as the first significant purchase.
The Flowline was chosen after careful consideration because Murnane and
O’Shea liked the flexibility of the rotary tooling system and the
fact that the Flowline is a sawing centre and cutting centre working independently
with a buffer in between to considerably enhance performance as the workload
varies between cutting and prepping throughout the batch. This combined
with the fact that ‘V’ and ‘Y’ notching are not done
on the saw leads to a much better performance than many other similar
machines they viewed.
Another major factor in the decision was that Stuga has three IT people
working in the field carrying out software link testing and other important
problem areas such as connecting machines to the customer’s computer
network and liaising all software matters with the office software company.
Tel: 0800 169 5444
Web: http://www.stuga.co.uk
Sarnafil Roof Welcomes Tony Poole to new Business Development Role
The
maintenance-free, PVC flat roofing system manufacturer, SRA now has a
nationwide network of 60 approved installers. To keep up with demand and
to show even more installers the benefits this highly profitable, fast
growing market, SRA welcomes Tony Poole in the new role of Southern Business
Development Executive.
With extensive sales and marketing experience within the home improvement
sector in his role at Coastal for 15 years, Tony’s knowledge will
prove valuable as SRA continues to grow. Tony comments: ‘SRA is a
great company to work for. They really care about their employees and
customers. The roofing system is a highly developed product with huge
guarantees that outlast all others materials on the market.’
Tel: 01603 748985
Teething
Troubles at New Rehau Warehouse
Rehau's new warehouse and distribution facility at Widnes has experienced
delays which have affected schedules and led to a four day suspension
of deliveries in mid February, according to a letter sent out to customers.
It further states that technical difficulties with the interface between
the Rehau and the new Exel logistics software systems have led to stock
discrepancies.
In November 2003 Exel announced the renewal of a five year contract to
supply logistics solutions to the PVC-U window profile extruder, supplying
the entire UK warehouse operation as well as both primary and secondary
distribution The renewal of the Rehau contract is part of a long-term
relationship between the two parties that started a decade ago when the
UK logistics supplier handled part of Rehau's supply chain operation from
a site in the West Midlands.
Exel's response to REHAU's substantial growth in business was to re-locate
part of the operation to an Exel centre in Widnes. In the short-term,
this offered immediate efficiencies. It is better located for REHAU's
factory, is within the area of greatest customer density and is close
to the ferry terminal to Ireland – a key market for REHAU.
Significantly, though, for the medium-term Exel proposed the construction
of a major new facility in the same area at the Widnes site able to accommodate
all REHAU's supply chain requirements well into the future. Not only will
this new warehouse benefit from significant e-technology, but it will
also house an innovative cantilevered racking system comprising 14 levels
and standing 13 metres high, enabling the size of the operation to be
substantially increased. The new facility was scheduled for completion
towards the end of 2003.
In the interim, Exel has already considerably grown the REHAU operation
over the past six months by expanding into the existing building at the
Widnes site. 'We have moved rapidly into a fully integrated supply chain
service for REHAU from factory gate through to end customer,' said Jon
Ravenhall, Managing Director, Contract Logistics at Exel's Industrial
sector, Europe. 'Since transferring some of the operation into Widnes
we have almost doubled the volumes we originally envisaged for this site,
increased the shift pattern from 16 to 24 hour working and added a further
seven vehicles to the existing fleet of six.'
The operation currently involves the handling of six-metre long plastic
and steel components for window frames with throughput at approximately
45,000 tonnes a year. The new distribution model involves Exel in trunking
product to outbases in Airdrie, Avonmouth and Barking for onward transportation
to window fabricators nationwide; North West England is supplied direct
from Widnes. Fleet efficiency is being maximised through use of in-cab
technology as well as route scheduling.
Final transfer of all stock into the new Widnes centre was scheduled for
January, the ease of which was expected to be greatly facilitated by stock
already being on site in the older warehouse. Once the new depot is fully
operational, Exel intends to introduce an additional level of value-added
activities enhancing warehouse efficiencies and improving response times
to customers.
'Exel offered a very professional, high technology response to our invitation
to tender,' explained Angus McIntosh, Director of ORA Logistics, REHAU
Windows. 'The new strategy means that there will be full product visibility
from order to delivery, significantly enhancing the service we can offer
customers well into the future, at a time when we are dramatically increasing
throughput volumes.'
Sliders
UK - Investing in Quality
Machinery
investment of over £180,000 has provided patio specialist Sliders
UK with a platform for continued unprecedented growth in 2004. The latest
new machines are from Elumatec and include a double stacking verti-quad
welder, CNC corner cleaner, automatic screw fixing station and a computerised
saw. A CNC copy router is also on order.
‘Elumatec have proven an excellent partner,’ said director Ian
Longbottom. ‘The highest quality products are our goal at Sliders
UK, these new machines have already played their part with improvements
in overall quality and massively increased capacity.’
Sliders UK is the fastest growing patio door specialist. Since the company
was formed in November 2002 its high quality bevelled and fully featured
products, aggressive pricing and reliable short lead times have proven
a huge success with customers across the UK.
Contact 01772 – 698222 or visit: www.sliders-uk.com
Listers
Stokes it up with Factory Expansion
A
new window manufacturing plant in Fenton heralds good news for the Stoke
workforce. When Listers updated its trade supply counter last year, no-one
could have predicted the far-reaching effects that would follow. Now,
just a few months later, the company has completed the purchase of a new
90,000 square foot factory that quadruples its manufacturing space.
'The Trade Counter has become something of a landmark on the Leek Road,
so that's certainly helped our visibility.' comments Mark Warren, Listers‚
Managing Director, 'But there's been a whole lot more going on in new
processes, quality improvements and greater involvement by our staff.
Sales were already building before the trade counter - we've more than
doubled since 2000.'
Mark is clear about the basis of the growth.'It's people, pure and simple.
Either we've been very lucky, or there's something special about the Stoke
on Trent workforce. The city has had a hard time for many years, and the
decline of our pottery industry is a tragedy, but it means that the work
ethos of centuries has become available to other industries.'
The new site in Fenton adds 90,000 square feet of manufacturing space
to Listers' capacity, creating opportunities for 86 new jobs. It represents
an investment in the Fenton area of over £2.5 million.
'We‚re investing in people and quality,' says Mark, 'I'm sorry if
that sounds like HR-speak, but it's an approach that has brought us to
sales of over £7 million a year, and that means we can set a target
to double that figure.
'British Standards, awards and licenses are important, and we've put considerable
resource into obtaining every relevant certification. What frustrates
me occasionally is that they're regarded by some companies as little more
than a badge. By driving quality right through the company, and giving
our staff the responsibility and encouragement to commit to the standards
we've ensured 100% compliance in every product we turn out, not just those
that are to be evaluated by the standards authorities. That takes dedication
and determination, and it‚s frustrating that not all of our competitors
see the standards the same way.
'But we‚ve stuck to our guns, and the new factory and the new jobs
are proof that we were right to do so.'
01782 205605
Web: http:// www.listertf.co.uk
Tackling
Bogus Trading - OFT Publishes Position Paper on Legislative Options
In
advance of its market study report on doorstep selling, the OFT has issued
a statement on options for tackling bogus trading through new legislation.
This is to make its views available before a debate on a private member's
bill in Parliament on the subject.
Bogus trading - where consumers are cold-called by doorstep traders
and then tricked or pressurised into paying large sums for very shoddy
goods or services - is often associated with property maintenance
services such as roofing or tarmacking. It is of particular concern as
most consumers affected are elderly and/or vulnerable and it can be linked
to distraction burglaries. The OFT estimates that there are in the region
of 16,000 bogus trading cases each year reported to Trading Standards
Departments, but the real total is likely to be higher. The individual
cost to consumers often runs into thousands of pounds.
Both the police and trading standards departments are currently
faced with difficulties in taking enforcement action not least in identifying
and tracing bogus traders.
The Property Repairs (Prohibition of cold-calling) Bill is scheduled for
its second reading on March 12th. The OFT has identified four legislative
options that could potentially contribute to tightening up the law and
tackling bogus trading:
* proposed new fraud offence to replace the existing Theft Act deception
offence under which some bogus trading prosecutions already take place
* fraudulent trading offence which would replicate current provisions
for fraudulent trading for companies to cover partnerships and individuals
* ban on work and/or payment within 7 days following a cold call, with
exceptions, for example when work must be carried out urgently
* ban on cold-calling for property maintenance/repairs (not necessarily
along the lines of the present private member's bill).
While there are difficulties with both of the possible options for a ban
(on work and/or payment within 7 days following a cold call, or on cold
calling for property repairs/maintenance), in view of the seriousness
of the bogus trader problem they are worth exploring.
The OFT recommends that the relevant government departments proceed to
consultation and legislation on the fraud and fraudulent trading offences,
and go out to consultation on the two possible options for a ban.
Download the OFT's position paper Legislative options for tackling bogus
trading (132 kb) here.
Exposure
to Lead: an HSE Report
The
total number of workers under medical surveillance in the lead working
industry in 2002/03 fell for the fifth consecutive year to 12,773 persons,
a fall of 2,332 on the previous year. Men accounted for 97% of workers
under surveillance in 2002/03, a similar proportion to that seen in previous
years.
The number of lead workers under surveillance has been on a downward trend
since its peak of 26 700 in 1990/91. The numbers under surveillance have
fallen in each of the last 5 years and the latest year's total is the
lowest on record.
The number of individuals suspended from work fell in 2002/03 with 68
males suspended and 5 females a reduction of 32 males and 5 females on
the previous year. The number of young people (aged under 18 years) under
medical surveillance rose slightly in 2002/03 to 30 persons from 20 persons
in 2001/02.
The proportion of male workers with blood-lead measurements at or above
60µg/100ml 100ml remains at the same level over the last three years
at 1.1%. Three sectors account for the majority of males over 60µg/100ml
being, Lead batteries, Smelting and Refining and Painting (of buildings
and vehicles). These also account for the majority of individuals suspended
from work.
The proportion of female workers with blood-lead levels at or above 30µg/100ml
100ml fell for the second consecutive year but the proportions are small
and tend to fluctuate from year to 100year. 68 males were suspended from
working with lead in 2002/03, a decrease on the previous years 5 female
workers were suspended from working with lead in 2002/03, a decrease on
the previous year.
Click here to download a PDF version of the report
on the lead levels in the glass working industry.
Click here to download a PDF version of the report
on the lead levels in the lead smelting industry.
No
‘Room for Improvement’ Needed as Dream Conservatories Puts the
Styal into Channel 4 Series
TV
stardom beckons for Styal fabricator Dream Conservatories: The Romford
based company was chosen as the official conservatory supplier and installer
for new Channel 4 lifestyle series Room For Improvement. Several projects
were completed by the company and filmed for the series, which started
in January 2004.
Dream Conservatories – formerly the conservatory sales arm of Supreme-O-Glaze
and part of home improvement giant the Wilmslow Windows Group – was
selected by Channel 4 producers as an ideal candidate for the series due
to its dynamic approach and high quality product range. Sales & Marketing
Director/Joint MD Martino Basile comments:
‘The producers for the new series were searching the internet looking
for bespoke conservatory specialists and found our website. They were
particularly impressed with our step-by-step guide to the conservatory
design and build process, and contacted us immediately. We are very proud
to have been chosen by them for this prestigious project.’
Room For Improvement has been developed as a home improvement TV programme
with a difference: Instead of independent experts deciding what is best
for their home, the homeowners themselves are charged with designing their
dream project and seeing it realised from conception to completion.
Dream Conservatories’ first project for the series involved the design,
manufacture and fitting of a bespoke conservatory for a terraced cottage
just outside Edenbridge in Kent. The project presented the company with
several challenges, says Martino Basile:
‘The cottage is very narrow so we had a limited scope for design,
but we were determined to achieve the goal that owners Mr and Mrs Burchell
had in mind, which was to build a conservatory that felt very much like
an extension of the cottage itself.
‘We had to build and install a special box gutter to fit neatly into
the limited space available, but fortunately for us the Styal roofing
system is very flexible and can accommodate just about every circumstance.
The fact that our fitters find Styal so easy and quick to work with helped
us immensely during the project as we had to get the job done within a
couple of days. I think we would have found things a lot harder if we
hadn’t been using such a good roofing system.
‘The team did a great job and Mr and Mrs Burchell were over the moon
with the result.’
Dream Conservatories has achieved such a high level of success, the company
is now looking to open a second trade counter in Welling, Kent and a third
trade counter in East London by the end of 2004, realising the company’s
‘dream’ of establishing itself as an independent brand within
one year. Dream Conservatories is now selling around 18 conservatories
per week using the Styal roof system and hopes to double this by next
year.
Tel: 0870 420 7900
Solaglas
Ltd of Coventry has been fined £35,000.00 with £7,470.52 total
costs awarded to the HSE for breaching HSE rules.
According to the HSE, on 24th May 2003 a worker sustained major leg injuries
when it was caught in a cullet conveyor used to crush glass. Entry was
regular to this area to adjust glass, entry was through a gap in the fence
which allowed stepping around the interlocked gates and stepping over
the conveyor while in operation. Fixed guarding was removed from the cullet
conveyor. Breaches included unsafe system of work, no suitable and sufficient
risk assessment and no guarding on a dangerous part of machinery.