Coldseal lost £3.3m in First Half of 2003, says Heywood Williams Interim Report
In delivering the Heywood William Group's interim results, Hamish Bryce, Executive Chairman, said: ‘The Group’s performance in the first half was very disappointing. The anticipated turnaround in the UK operations was slow to materialise while US markets remained difficult. Senior management has now changed, and we have successfully completed the disposals of Creation and Coldseal. Heywood Williams is becoming a more simplified group and we will take whatever steps are necessary to unlock the growth and profit potential which our market leading businesses possess.’
Financial
• Turnover £278.3 million (2002: £309.8 million)
• Operating profit from continuing operations £1.1 million
(2002: £8.6 million)
• Pre-tax loss £1.7 million (2002: £10.0 million profit)
• Earnings per share (1.3p) (2002: 8.6p)
• Interim dividend maintained at 5.25p
* before exceptional items and goodwill amortisation
Recent developments
• £34.8 million Creation Group disposal receipt strengthens
balance sheet
• Disposal of Coldseal Limited eliminates volatile and loss-making
business
• £8.9 million received in part settlement of legacy product
rectification claim
Management
• Hamish Bryce appointed Executive Chairman on 31st July 2003
• William Schmuhl assumed executive responsibility for US operations
• Ian Stuart resigned as Chief Executive on 31st July 2003
Interim Report from the Chairman
The Group’s financial performance during the first half of 2003 has
been very disappointing. The combination of delays to the scheduled improvements
in our UK operations and poor US market conditions resulted in the first
half loss.
There have, however, been significant developments in the leadership and
structure of the group, particularly since the period end:
• The resignation of the group chief executive on 31st July 2003,
concurrent with the trading update to the stock market and appointment
of Hamish Bryce as executive chairman.
• The sale of the Creation Group, completed on 23rd July 2003, resulted
in the receipt of £34.8 million. The Creation Group is a leading
manufacturer of windows, doors and aluminium fabricated parts for the
US recreational vehicle and light truck markets. In the first half of
2003, Creation made an operating profit of £1.6 million (H1 2002:
£3.3 million, full year 2002: £6.0 million) on sales of £43.6
million (H1 2002: £51.1 million, full year 2002: £97.0 million),
down from the levels of the previous year due to tough US market conditions.
The cash from this transaction has been used to reduce general corporate
borrowings and further strengthen the group’s balance sheet. It also
enabled the board to give an undertaking to shareholders that the dividend
for 2003 will match that paid in 2002, other than in unforeseen circumstances.
• The disposal of Coldseal, our direct-sell, retail double-glazing
business, was announced on 26th August 2003, to a company controlled by
the owner of Bryco, a private direct-sell, retail double-glazing business
operating in the Home Counties. The consideration received was 19.9% of
the shares of the new company, which also includes the trade and assets
of Bryco. In the first half of 2003, Coldseal lost £3.3 million
(H1 2002: £0.7 million loss, full year 2002: £5.7 million
loss) on a turnover of £28.7 million (H1 2002: £31.0 million,
full year 2002: £61.0 million) and although management action led
to improvements throughout the first half, it remained loss making. This
earnings enhancing disposal has further simplified the scope and breadth
of the group’s UK activities and eliminated a volatile and loss making
business.
• At the end of the first half, we received £8.9m in part settlement
of the legacy product rectification claim first announced in August 2002.
This amount has been credited to the provision that was taken in 2002
pending reassessment once full settlement is concluded.
PERFORMANCE
Group loss before tax, goodwill amortisation and exceptionals was £1.7
million compared to £10.0 million profit in the first half of 2002,
on turnover of £278.3 million (H1 2002: £309.8 million). The
loss before tax, after exceptionals and goodwill amortisation was £3.4
million (H1 2002: £1.8 million loss).
Operational Review
In our continuing operations, the restructuring of the UK business did
not progress at the rate expected, particularly in the Plastic Systems
Division and, to a less material extent, in our Fabrication activities.
There were cost over-runs in Plastic Systems incurred dealing with supply
issues, while demand has yet to recover to the levels anticipated following
the supply chain disruption, which commenced in 2002. The situation is
slowly improving and every effort is being directed towards accelerating
this process.
Mila, our specialist component wholesale division, performed satisfactorily,
although its results were held back because of the weakness of Sterling
against the Euro.
Way Forward
Our plastic extrusion business recovery programme aims to reverse the
decline in profitability it has experienced over the past two years. As
a customer focused company we are introducing market leading new products
to replace ageing ranges, whilst focussing on cost and operational controls
in order to be price competitive. Our development plans in Mila are building
on past success, providing industry leading customer service, and continuing
to offer excellently designed products at competitive prices. In Mila
approximately 25% of our products sold were introduced within the past
three years.
In the US we have two operations, the largest of which is LaSalle Bristol,
a specialist wholesaler which primarily serves the material supply needs
of the manufactured housing industry. This business also supplies the
recreational vehicle (RV) market which accounts for 25% of its sales.
Our priorities include increasing our share of the RV market, by offering
higher quality product specifications. We will continue the product upgrade
initiatives in MH which have been so instrumental in protecting our profitability
in spite of the severe market downturn. At the same time, the focus on
cost reduction is relentless.
Our other business in the US, Bristolpipe, is a specialist regional manufacturer
of a wide range of plastic pipe covering many applications. Our plan is
to continue to improve the productivity and effectiveness of our manufacturing
facilities and to promote the product to new markets and customers.
Prospects
Operating profit, before goodwill and exceptionals, from continuing operations
was £1.1 million in the first half (excluding Creation and Coldseal).
This compares to a profit of £8.6 million in 2002 for the same operations.
The deterioration occurred almost entirely in the UK, with Plastic Systems
being the largest single element.
‘Dynamic’
Wendland Helps Kickstart Conservatory Roof Craft
Conservatory
Roof Craft Ltd – the new business venture launched by renowned industry
figure Gary Morton – has praised Wendland’s ‘dynamism and
extensive support’ during the company’s highly successful first
few months of trading. Conservatory Roof Craft, which now supplies the
trade nationally from its West Bromwich headquarters, has also applauded
the quality of the Styal system, chosen following extensive independent
tests carried out by Morton’s co-partner Gary Richards.
Launched
just a few months ago, Conservatory Roof Craft has already made an impact
upon the UK marketplace, manufacturing 22 roofs in its first week alone.
The company is already close to its original target of producing 50 roofs
per week within the first 9 months of trading, and Gary Richards believes
that it will achieve its optimum target of 70 per week far sooner than
predicted:
‘We’ve really hit the ground running, something that was no
doubt helped along by our collective contacts within the industry. But
I know we can sustain this and build on it because we offer what we believe
to be the best system on the market today.’
The comment is not one that Richards makes lightly: Having looked thoroughly
at all the conservatory roof systems available and narrowed his choices
down to the last two, he then purchased two of each of the final contender’s
roofs from independent fabricators – unknown to both potential suppliers
– and erected and installed them himself. Says Richards:
'The Styal roof got our vote because it was so complete, and the attention
to detail was superb. Every nut and bolt, every piece of trim, every detail
was well thought out.’
Both Richards and Morton have also commended Wendland’s overall approach.
Comments Richards:
'We were impressed by Wendland’s dynamism in its response to us.
Every query we had was answered quickly and effectively; it seemed they
were keener to do business with us than others we talked to. They were
also very impressive as a team, with impressive leadership from the top.
They have also so far been completely unshaken by any of our demands and
fluctuating order requirements have been taken in their stride. Their
general professionalism and enthusiasm has made all the difference to
us during the crucial first few months, and I expect it will continue
to do so.’
Third
Toughener Doubles Capacity
A
third toughening line marks the latest step in the continued growth and
expansion at Float Glass Industries. The company says that this investment,
together with other recent developments, puts the 109-year old company
among the best-equipped independent glass distribution, toughening and
processing operations in the UK.
As a result of the imminent commissioning of the new Tamglass ProConvection™
Horizontal Electric Convection Furnace, the Processing Division has relocated
into its own dedicated premises locally in Floats Road, Manchester. The
main factory has also been extended to enable the new Tamglass ProConvection™
Horizontal Electric Convection Furnace to be located close to the existing
Glasstech FCH2 gas convection system, which has been successfully toughening
hard and soft coat Low-E glasses for the last three years.
The new Tamglass Furnace will double capacity and therefore enable FGI
to meet the increasing demands for toughened hard and soft coat Low-E
glasses. ‘Our Glasstech FCH2, which is still only three years old,
is running at full capacity 24/7,’ comments Roy Offland, FGI’s
Chairman. ‘We expect this latest toughening facility will speed up
production by as much as 40%, depending on the type of glass. This means
we can continue to deliver high quality, high volume toughened glass products
within the timeframe our customers expect.’
The performance benefits relate to the design of the Tamglass ProConvection™
tempering system in which both convection piping and heating elements
are placed lengthwise in the furnace. This allows heating uniformity by
optimising temperature control through a patented high-speed convection
system - which all adds up to fast turnaround and more capacity. The new
equipment will give FGI additional capability to provide large sized architectural
toughened glass as well as high volume hard and soft coat Low-E glass
whilst maintaining the high optical quality demanded by the market.
David Offland, Joint M.D. believes the investment in this state-of-the-art
toughening plant will bring considerable advantages to both FGI and its
customers, ‘In addition to the features already mentioned, the new
equipment is very a reliable, low maintenance system.
‘This will enable FGI to maximise production time and ensure we continue
to offer our customers a fast reliable service, regular guaranteed deliveries
and consistent quality.’
With construction now complete and testing underway, the new toughening
line will be in production by early September 2003.
Tel: 0161 946 8000
Web: http://
www.floatglass.co.uk
Eynsham
Group Acquires Trent Valley
Eynsham
Group has acquired the successful Nottingham based Trent Valley Window
and Door co. Ltd, in an expansion drive that takes the Group to £20m
turnover in under two years.
Eynsham, founded by Gary McCartan and Mike James, already has two businesses
under the 3D banner in the South Midlands. Trent Valley provides a good
geographic fit for the group as the business is predominantly based in
the East Midlands.
Trent Valley, following the retirement of David Caswell, will continue
to be run by Tony O’Brien expanding its commercial supply and fit
activities. The company also has a local retail operation built on strong
customer service.
Commenting on the acquisition, Mike James says ‘Trent Valley fitted
all our criteria for an acquisition – good products, people and service
in the commercial sector.’
Eynsham Group will now be based at its Cheltenham factory, with each of
its three main businesses run locally.
Eynsham Group Ltd were advised on the acquisition by TMG Corporate Finance
and DWF Solicitors in Manchester.
UV
Glue Producer Projects to Double Turnover after Winning Overseas Business
J
& S Adhesives Ltd, a Lincolnshire-based manufacturer of ultra violet
and visible light-curing adhesives, is projected to double its annual
turnover to £200,000 in the next 12 months after winning new business
in Germany and other European countries, with the help of Trade Partners
UK - the government organisation that provides support services for UK
companies trading overseas.
The company commissioned Trade Partners UK to produce a Tailored Market
Information Report in early 2002 to assess potential markets including
Germany, France and Spain. Commercial officers in Frankfurt and international
trade advisers in Business Link Lincolnshire helped J & S Adhesives
to identify potential distributors, make initial contacts with prospective
companies and arrange meetings to discuss business collaboration.
John Jackson, company managing director said, ‘We joined an Export
Explorer trade mission to Frankfurt in May 2003 during which we secured
a deal to sell light-curing adhesives to Rayherr Hobby GmbH - a German
firm which supplies to 5,000 hobby shops throughout Europe. This order,
together with business generated through our new German distributors,
plus the deals we are discussing with other European companies, is expected
to increase our turnover by £100,000.
‘Trade Partners UK has provided us with excellent services and specialist
advice which I will recommend to companies looking to expand overseas,’
added Mr Jackson.
The success in Germany is just the beginning for J & S Adhesives.
Working closely with Trade Partners UK, the company is talking to potential
customers in Japan and the USA, as well as exploring opportunities in
France and Spain.
‘Visit
Castle Coombe racing circuit in Chippenham on the 23rd or 24th September
2003 for a day out that will be good fun and great for your business!’
says Modplan.
Guests will be able to view the complete range of Veka Products, all of
which are available through fabricator Modplan Limited. Members of the
Modplan team will be on hand to discuss the benefits of the close working
relationship that has developed between themselves and Veka and how that
is extended to Modplan’s customer base.
For those interested in the conservatory market, also on display will
be a roof system with Modplan’s sister company, Versatile Limited,
demonstrating the advanced design and engineering that the company says
can cut the time of conservatory installation by a whole day.
And for an added bonus the Big Rig will provide a great vantage point
from which to view the motorbike and classic car events taking place on
the circuit – for free!
Call Modplan now on 01495 246844 and ask for your personal invitation
to Castle Coombe.
Revision
of Part F - Ventilation
The
Office of the Deputy Prime Minister plans to revise Part F of the Building
Regulations in order to further develop and improve the provision of ventilation
to people in buildings. BRE has been awarded the contract to provide the
necessary expert technical and administrative support to the ODPM Working
Group responsible for the revision process.
The Working Group will include members of the Building Regulations Advisory
Committee and Government officials. It will consider important changes
and additions to Approved Document F, which gives technical guidance to
the construction industry on meeting the requirements of Part F.
The Working Group will take account of the conclusions of current research
projects, and the introduction of an alternative more performance based
approach is likely to be considered. The structure of the document itself
will be examined for ways of making it easier to follow.
A key part of the process will be a public consultation on any proposed
revisions and an investigation of their impacts on small businesses. Dr
David Ross of BRE who is leading the BRE team says, ‘We are looking
to integrate recent research and feedback from the public and industry
to provide healthier buildings for the occupants and easier to follow
guidance for industry’.
This contract to provide support for the revision of Part F is quite distinct
from the research work that ODPM is currently commissioning to underpin
the long-term development of the Regulations.
Contact: David Ross at BRE
Tel: 01923 664505,
E-mail: mailto:rossd@bre.co.uk
As
part of its constant drive to improve its range of products and services
for its customers, Pilkington Processing and Merchanting UK has invested
£3 million into relocating its Bristol branch to a brand new manufacturing
and distributing centre at Imperial Park, Hartcliffe, Bristol.
Fully operational from Tuesday 26th August, the new, purpose built Pilkington
Bristol branch will enable the company to offer and stock a much wider
range of Pilkington products.
Creating more than 20 new jobs for the area, the new branch replaces the
former cramped 50-year old city centre site and benefits from a toughening
line and additional edging and bevelling equipment. The toughening line
enables Pilkington Bristol to provide a one stop shop for both stock and
toughened glass.
David Beaver, Pilkington Bristol general manager commented on the move:
‘Our new premises have been carefully planned to ensure that they
offer a much more efficient working environment and allow far more convenient
access for our customers. The increase in space now enables us to stock
a bigger and better range and the new equipment means that we can offer
an even greater variety of products.’
Pilkington Bristol can be contacted on 0117 947 3200. General Pilkington
enquiries should be directed to 01744 692000.
Web: http://www.pilkington.com
Heritage
Strengthens Profile 22 Ties
Heritage
Trade Frames, part of the Heritage Somerfield Group, has recently strengthened
its working relationship with Profile 22. After years of dual sourcing,
Heritage Trade Frames has recently committed its future to Profile 22.
The
Bolton-based trade fabricator has been using the Profile 22 system for
over 10 years alongside other systems, but has now decided to streamline
its operation by offering the Profile 22 system exclusively.
'Further enhancements to the already successful product range and recent
changes in senior management at Profile 22 influenced our decision to
commit to Profile 22,' says Managing Director, Sean Munsie who founded
the company in 1989.
Profile 22’s Sales and Marketing Director, Rob McGlennon, echoes
his comments: 'We’re delighted that Heritage has made this long-term
commitment and we look forward to helping Sean further expand his business.'
Offering the new Profile 22 bubblex pre-applied gasketed System 70 profile
as its principle product, Heritage plans to further expand production
from its current 600 frames per week to over 1,000.
The product will be further enhanced by fitting the new high-security
Safeware locks as standard. Launched by Profile 22 at Glassex 2003, the
Safeware locks come complete with a comprehensive marketing pack to support
trade buyers.
Heritage recently relocated to a 30,000 sq ft factory in a prime position
opposite the Reebok Stadium in Bolton, further improving its links to
the North West and North Wales.
Sean adds: 'The location and size of our new factory will enable us to
substantially expand our operations. Strengthening our ties with Profile
22 means we also have a quality product with which to grow for the future.'
To obtain the enhanced Profile 22 System 70 product, trade buyers should
contact Sean Munsie on 01204 664700.
First
On-Site Contract Paint Service to Cover all Surface Finishes
A
new service, claiming to be the first of its kind in the UK, launched
this month by Peatey's Painting Services offers glazing product manufacturers
on-site colour paint options and repairs.
The process means that Peatey's can paint PVCu wherever needed. This technique
also enables repairs to newly installed window frames, conservatories
or doors to be fixed on site - saving time and money. Damaged window frames,
for example, can be cut and then coloured by staff from Peatey's and mistakes
can be put right quickly.
Preatey's can use the process to paint other surfaces that cause most
difficulty to standard contractors - aluminium and mild steel as well
as the more straightforward materials such as wood and plaster.
Ruth Chapman, MD of Leeds-based Peatey's, said: ‘Painting PVCu is
a relatively new technique. Until this year the newly developed PVCu paints
could only be applied at a paint factory. Now a handful of UK companies
have been accredited to apply the paints under licence and Peatey's is
the only one to offer it with a complete maintenance service for all finishes.
‘The UPVC finish is not far short of revolutionary. The finish is
fantastic and has to be seen to be believed.
‘This finish can be applied in a complete range of colours. It is
not a product that goes on the surface and can chip off or fade. The process
embeds the colour into the plastic or metal so it will last. Items have
now been tested to show that there is no breakdown after 10 years. We
can do all the colours of the rainbow including matching corporate and
fashion colours.’
The new technique makes its ideal for refurbishing existing buildings
too. Drab and faded window frames, doors and conservatories can be given
a facelift at minimal cost compared to total replacement.
Peatey's offers a free telephone advice service for architects, designers
and others to help specify the finishes that may be needed in varying
environments.
Tel: 0113 250 1046
Email: mailto:info@peateys.co.uk
Web: http://www.peateys.co.uk
Jane
Davidson Presses the Button on a £1.3m Investment
The
Education Minister for Wales Jane Davidson, visited Llantrisant-based
Sentinel Doors in July to officially open a new composite door production
facility that is a major part of a £1.3 million investment announced
by the company a year ago.
The Minister, who visited Sentinel in her capacity as Welsh Assembly Member
for Pontypridd, was welcomed by managing director Steve Brown and members
of the company’s management team and staff. She then toured the main
factory to review new automated machinery and injection equipment, before
moving on to Sentinel’s new 10,000 square foot integrated manufacturing
site where she was invited to press a computer screen to start the door-skin
manufacturing process.
The new facility – described by the company as ‘revolutionary,
more environmentally friendly and the only one of its kind in the world’
– has doubled Sentinel’s production to 250 doors a day, as well
as providing employment for a further thirty-seven staff. It is also expected
to create opportunities for export sales and technology transfers in overseas
markets.
The Minister was also told that the £1.3 million investment, of
which £450,000 was funded via the Welsh Assembly Government through
the Regional Selective Assistance Grant Scheme, had played a significant
part in the award of a major contract that had only been confirmed the
previous day.
Making the announcement Steve Brown said: 'Sentinel Doors has been awarded
what is believed to be the largest single contract ever, for composite
doors, covering the supply of an estimated 90,000 doors valued at £18
million, over seven years.'
The contract was awarded by Fusion 21, a purchasing consortium representing
seven of Liverpool’s registered social landlords.
Tel: 01443 229219
Lister
Trade Frames Opens New Building Plastics Sales Counter
Lister
Trade Frames has just opened a new Building Plastics Sales Counter at
Leek Road in Hanley Stoke on Trent. The new counter area has been designed
for customers to benefit from a spacious serving area, new displays and
demonstration models.
Listers carries over 5000 lines in stock and deliver on its own vehicles
throughout the Midlands and Wales regions. Listers says it has become
a One Stop Shop for plastics and building products, with items ranging
from window Trims and Sealants to Carports, Doors and Fully Bespoke Conservatories.
Sales Director, Phil Warren says that ‘the new sales counter has
made buying from Listers even more enjoyable. It has only just opened
and our customers are already singing its praises.’ But they don't
just call in to buy plastics, ‘some customers visit us just for a
little product advice while enjoying a complimentary cup of tea or coffee’
Phil Says, ‘but with record sales on the counter we must be giving
our customers what they want.’
Contact: Phil Warren
Tel: 01782 205605
Email: mailto:sales@listertf.co.uk
Astral
Conservatory Systems Advert Cleared by ASA
A
complain about a regional press advertisement for windows and conservatories
company Astral Conservatory Systems Ltd of Mitcham, Surrey was not upheld
in either of the two objections, according to published details from the
Advertising Standards Authority.
The complainant challenged:
1. the claim ‘over 25 years experience’ because he believed
the advertisers' company was incorporated in 1995 and
2. whether the ‘Croydon Champions’ award was genuine.
The Adjudication was as follows:
1. Complaint not upheld
The advertisers asserted that their two main directors had both worked
continuously in the PVC-u industry since 1977 and had founded Astral Conservatory
Systems Ltd in 1995. They stated that the claim related to the directors'
previous experience, all of which was directly relevant to the product
and service that the advertisers provided. They sent a letter dated December
1979; it showed that the advertisers' two founder directors were in the
PVC-u industry at that time. The Authority noted two of the advertisers'
directors each had 25 years experience in the PVC-u industry. It considered
that most readers would understand the claim to refer to the experience
of those people who comprised the advertisers and did not object.
2. Complaint not upheld
The advertisers explained that they worked closely with the Croydon crime
prevention office on crime prevention initiatives and were referred to
the editor of the Croydon Guardian, who had initiated a scheme to promote
Croydon as a good place to live and work. They pointed out that this year
they had sponsored the crime prevention category of the Croydon Champions
and were referring to that in their advertisement. The advertisers sent
a briefing document from Croydon Champions and some promotional material,
which showed their involvement in the scheme. The Authority considered
that the advertisers had demonstrated sufficient involvement in the scheme
to justify the reference made to it in the advertisement.
No
‘GAP’ in 10 Years for Swish Customer
One
of Swish Building Products’ major customers, GAP (General All-Purpose
Plastics) celebrates its 10th anniversary this year, having grown profitably
in partnership with its supplier for the last decade.
On a recent visit to the Swish factory at Tamworth, GAP MD Charles Greensmith
(centre) is pictured with Ken Simpson, Swish MD (left) and Jim Rawson,
Chairman of Epwin Group, Swish’s parent company, congratulating GAP
on its success.
Left
to right – Ken Simpson, Charles Greensmith and Epwin Chairman, Jim
Rawson
GAP stocks the whole range of Swish cellular PVC roofline and cladding
products, as well as composite doors, door panels and other plastic building
products. It has six branches throughout Merseyside, the North and North
West employing a total of 300 people.
Comments Ken Simpson: 'As principal suppliers since the beginning of GAP’s
business, we are delighted to mark this important anniversary with them.'
Charles Greensmith said 'The Swish range has enabled us to grow and maintain
the business throughout the ten years thanks to its excellent reputation
for quality, versatility, and customer service.'
Left to right – Ken Simpson, Charles Greensmith and Epwin Chairman,
Jim Rawson
Ultraframe's
Innovative Pricing Initiative a Success
An
innovative pricing structure which Ultraframe, the international designer
and manufacturer of conservatory systems, has introduced on its classic
Victorian roof system has proved a success.
Fabricators and retail installers are apparently enjoying better business
opportunities, enhanced sales and increased profits as they are able to
offer homeowners a wider selection of Victorian colours and finishes,
for example, than before.
The pricing structure allows fabricators and retail installers to provide
homeowners with a strong incentive to 'trade up' as the most sought-after
features and accessories are now included in the package offering consumers
a better deal.
Mark Pearce, Sales Manager of KJM Windows in Hampshire, commented:
'This is helping our salespeople get a better specification. We always
used to specify 25mm polycarbonate anyway, but having it inclusive —
at a known price irrespective of colour — makes things simpler'.
Added value elements now featuring in any Ultraframe classic Victorian
roof are:
*25mm polycarbonate in any colour including Solar Control
*A choice of all foils internally and/or externally at the same price
*Ultraframe ConservaflashTM — the pre-engineered flashing system
*UltraSelect 2003
*Eavesflow cross flow ventilation
*Gable Support System (on suitable duo pitch roofs)
Dave Dawes, Sales Manager of Kent-based Fineline, is also an advocate
of the new structure: 'It has allowed us to up our standard specification;
and encourages our reps to sell up — especially with items like 25mm
polycarbonate and UltraSelect. It is helping conversions, and the inclusiveness
is also helpful in ironing out misunderstandings over extras when, say,
people see a conservatory on a show site and have assumed options on display
were part of the price. That doesn't happen anymore'.
Peter Allen, Sales Director at Ultraframe, said: 'This has proved a win-win
situation for everyone. Retailers and installers are able to be more competitive
and offer more to homeowners which encourages sales. Homeowners get more
product for their money which is what they want.'
Ultraframe has maintained the flexibility of choice throughout the initiative.
For example, should installers or indeed homeowners prefer to have the
product without the added extras that choice is still available.
Web: http://www.ultraframe.co.uk
Setting
a Price on Conservatories
Windowlink’s
Vector Plus has been declared a commercial success by Heavers of Bridport,
which is already benefiting from Windowlink’s recently launched integrated
pricing module for its Vector 3D presentation and quotation software for
conservatories. ‘Six of the conservatories ordered in the first five
weeks of using the software were actually sold ‘on screen’ –
representing well over £100,000 worth of business. And that just
wouldn’t have been possible before,’ explains Managing Director,
Malcolm Heavers.
Conservatories are a major product line for Heavers which started using
Windowlink’s Vector conservatory package in 2001. As an already enthusiastic
Vector user, adding Windowlink’s Vector Plus integrated pricing option
seemed a natural progression for the company. The powerful new facility,
which enables the price of a conservatory to be calculated on screen during
the design process, is proving invaluable in streamlining Heavers service
and speeding up their sales cycle.
Stored price matrices and pricing rules are set up within the program
as standard, together with a checklist of prompted questions based on
information provided by each individual user – Heavers has customised
these questions and has 60 on its personalised module. This list ensures
that nothing that could affect the price or timescale for completion is
overlooked, therefore even an inexperienced salesman can provide an accurate
price on the spot.
Vector Plus also allows customers to see immediately the effect any changes
in specification may have on the overall price. The answers given are
printed as part of the contract, so eliminating the possibility of costly
mistakes at the point of sale and avoiding time-consuming recalls.
‘It’s a real market-beater and we use it exclusively when selling
bespoke conservatories, either in the home or showroom,’ continues
Malcolm. ‘The sales person can simply change the colour or add different
accessories, all at the click of a button. Without built-in pricing we
would have had to go back to the office to cost the different elements,
but now we can quote a price with confidence there and then and so close
the sale much faster,’ he concludes.
Windowlink’s Vector Plus is available either as a complete design,
sales and pricing package or as an upgrade for existing users.
Tel: 0870 7701640
Web: http://www.windowlink.com
With
Growing Sales Crystal still Reduces Door Lock Stock Holding by 75%
Romford
based Crystal Windows & Doors Ltd has reduced cash tied up in its
door lock stock by nearly 75 per cent, thanks to the implementation of
Millenco's Kanban based supply chain solution. At the beginning of every
month Crystal used to order in a stock of door components worth £40,000.
The company now holds no more than £10,000 at any one time.
The benefits of this scheme are manifold. As well as reduced stock costs,
benefits are also gained through improved production efficiencies, better
use of available space, a reduction in administrative procedures, and
overall improved production planning.
'With 57 teams on the road fitting £550,000 worth of windows and
doors each week, we were keen to explore new ways of generating greater
efficiencies in as many areas of our production as possible,' said Crystal's
operations manager Tony Morris. 'Add to this the fact that space is a
premium, particularly down here in the south east, and we could have been
facing real stockholding problems if growth rates continued as they were
doing.
'Millenco approached us with its supply chain solution - a new Kanban
based venture it was implementing to provide better value to its customers.
We went ahead, piloting the scheme with the Millenco door locks. Six months
down the line we are so pleased with the way it has improved that we are
looking to work with Millenco in extending it throughout the factory with
all other components.'
Crystal currently receives one delivery per week to ensure that it always
has availability of door locks without tying up precious cash or space.
The door lock bins are delivered straight to the door production lines,
eliminating the need for the fabricators to go backwards and forwards
to the store rooms - every component is automatically, continuously, to
hand.
'Because we place our orders on a weekly basis, our need is far more precise
than if we were predicting demand on a monthly basis,' continued Tony
Morris. 'We can avoid over-stocking, yet also avoid the problem of running
out. Spur of the moment ordering is eliminated, which is great for both
our, and Millenco's, production planning. It keeps costs down for us all.'
Millenco's Supply chain solution is based on need rather than assumption.
Developed around the Kanban concept, the system operates on a three bin
format - one in use, one in stock at the customer site, and a third kept
at Millenco's Wolverhampton warehouse. This third bin is delivered and
invoiced when the 'in use' bin becomes empty. The number of deliveries
depends entirely on how quickly stock is used.
Tel: 01902 454543
Web: http://www.millenco.net
Pictured: Tony Morris, operations manager for Crystal.
Picture
This – On the Road with Quantal
Quantal
Conservatory Roofing Systems has increased its fleet with new, high-specification
delivery vehicles.
The additions to the fleet include a 17tonne rigid lorry, two new tractor
unit and four 45ft trailers. Each has a different image of a Quantal conservatory
installation covering the whole of the flat-panelled rear doors. The company
logo runs full-height along both silver-curtained sides.
Richard Hulbert, general manager, explains, 'This is a substantial investment,
part of Quantal’s on-going commitment to product and service developments,
and will benefit all our customers'
Both the lorries and trailers have air suspension, for a softer ride that
is kinder to their cargo. The trailers have been custom manufactured to
Quantal’s exact specification, with a low loading height for easier
freight handling.
In addition to the standard straps for securing the load, a bar lock system
has been fitted to the trailers and lorry. Especially developed to carry
bar lengths, this assembly enables orders to be segregated to ensure all
consignments are delivered in perfect condition.
Web: http://www.quantal.co.uk
Wacker's
Nünchritz Site Celebrates 100th Birthday of Silicone Pioneer Prof.
Richard Müller
A
ceremony on August 6th at Wacker's Nünchritz site in Saxony, Germany,
recalled the pioneering achievements of chemist Professor Richard Müller.
July 17th marked the 100th birthday of Prof. Müller, who passed away
in 1999.
Together with American researcher Eugene G. Rochow, Müller discovered
a synthesis method for the large-scale manufacture of methylchlorosilanes
in 1942 and thereby established the foundations of modern silicone chemistry.
Named after the two co-discoverers, the Müller-Rochow process continues
to be the sole method in use worldwide for manufacturing silicone precursors
on an industrial scale. The Nünchritz site has been applying the
results of Müller's silicone manufacturing research since 1954. The
site's new facility, currently under construction, will manufacture methylchlorosilanes
using the Müller-Rochow process, too.
Wacker is investing more than EUR 400 million in the expansion of production
facilities for silicones and their precursors, as well as in providing
infrastructure, environmental protection and safety equipment. This investment
will increase capacity, particularly for siloxanes, to many times its
current level. Nünchritz, after Burghausen, is Wacker's second pillar
for ensuring global growth. The expansion will create more than 200 new
jobs.
As one of the world's top four silicone manufacturers, Wacker Silicones
supplies more than 2,000 silicone products. This Wacker business division
is the world's leading provider of airbag coatings, masonry protection
agents, and elastomers for sophisticated applications involving medical
technology and insulation for power transmission and distribution. Wacker
Silicones has nine production sites along with subsidiaries and sales
offices in 26 countries. Some 80 percent of the Wacker division's global
sales in 2002 – EUR 992 million – was earned outside Germany.
At the Nünchritz site, 880 Wacker Silicones employees manufacture
chlorosilanes, silicone fluids and emulsions, antifoams, silicone sealants
and fumed silica, along with required precursors. Silicones have a broad
range of applications in the construction and chemical industries, in
automotive engineering, the textile, plastics, electrical and electronics
fields, and in the cosmetics and paper sectors.
Alcoa
World Alumina Chemicals, BHP Billiton to Expand Suriname Alumina Refinery
by 250,000 Metric Tonnes
Alcoa
Inc. announced on August 4th that Alcoa World Alumina Chemicals (AWAC),
a global alliance between Alumina Limited (40%) and Alcoa (60%), will
expand capacity at its Paranam alumina refinery in Suriname by 250,000
metric tonnes per year, an increase of approximately 12 percent. The expansion
has also been approved by BHP Billiton, the parent company of Alcoa's
joint venture partner in Suriname. Affiliates of Alcoa and BHP Billiton
own 55% and 45%, respectively, of the Paranam facility.
The $65 million dollar expansion will begin immediately and should be
finished by July 2005. Upon completion, the Paranam alumina facility will
have the capacity to produce approximately 2.2 million metric tonnes of
alumina per year. The investment and its resulting output will provide
significant benefits to the overall economy of Suriname.
Alcoa's presence in Suriname extends back to 1916. The business, now known
as Suriname Aluminum Company, L.L.C. (Suralco), originally focused on
mining bauxite. In 1958, Suralco signed an agreement with the government
of Suriname to develop the country's hydropower and bring the aluminum
industry to the country. Suralco is owned by Alcoa World Alumina and Chemicals
(AWAC).
Alcoa will take steps to ensure the expansion project meets the company's
high standards for sustainable development.
Web: http://www.alcoa.com
Alside
Parent to Acquire Gentek Operations
Associated
Materials, Inc., parent of Alside, Inc., has signed a definitive agreement
to acquire Gentek Holdings Inc. The $118 million transaction expands Alside’s
siding and window production capacity, as well as significantly expanding
its number of distribution centres. Gentek is the parent of Gentek Building
Products, Inc. in the U.S. and Gentek Building Products, Ltd., in Canada,
which manufacture and distribute siding and windows under the Revere and
Gentek brand names. Reporting 2002 sales of $260 million, Gentek produces
135,000 vinyl windows a year at its plant in London, ON, it reports, selling
throughout Canada and in the Midwest U.S.
'Gentek’s 13 company-owned distribution centres in the mid-Atlantic
region of the United States and 20 company-owned distribution centres
in Canada will expand Associated Materials’ market presence throughout
North America,' states Michael Caporale, president and chief executive
officer of the Cuyahoga Falls, based company. 'Gentek’s strong U.S.
independent distributor business will also allow us to increase our presence
in this important market channel.'
Associated Materials plans to keep the Revere and Gentek brand names. 'We
intend to maintain distinct separation of these brands from our Alside
brand by continuing to offer differentiated product, sales and marketing
support,' Caporale notes. 'Revere and Gentek customers will continue to
receive the same excellent service and support that they have enjoyed
in the past.'
The acquisition is expected to close by the end of August. In addition
to the newly acquired Gentek operations, Alside produces vinyl siding,
fencing and other products at plants in Akron, OH; Kinston, NC; and Cedar
Rapids, IA, and Bothell, WA and has over Alside Supply Centres across
the USA. Alside reports window product sales in the $200 million
to $300 million range.