Heywood
Williams Takes it on the Chin with £61m Write-Offs
Heywood
Williams has reported losses of £71.8m for the financial year 2003,
£61m of which relates to goodwill write-offs. The group has taken
drastic action to reverse the slide: the DIY window and door businesses
and the composite door operations have been closed, the UK head count
has been reduced by 15%, and Coldseal, Creation, Cestrum and Coastal have
been sold off. Although share prices did not move much on the announcement,
no final dividend has been recommended. On the positive side, Robert Barr
is due to join as group chief exec in the summer and the company has announced
a new system - the Elite 63 - and enhancements of the Elite 70 suite with
the introduction of a tilt-turn window.
Discontinued operations comprise:
- the Creation Group (US), Coldseal (UK) and Cestrum Building Products
(UK) which were disposed of during July, August
and December 2003 respectively;
- the remaining UK fabrication operations Cestrum Conservatories and Coastal
which were disposed of subsequent to the
year end
The 2003 operating exceptional item related to the implementation of the
action plan announced on 31 October 2003,
the purpose of which was to create the right platform for the UK business
to build on its UK PVC windows, doors and
conservatory market position and enter 2004 at a much improved run-rate
of profitability. The plan focused on three areas:
- discontinuation of a number of unprofitable and under-performing initiatives;
- significant reduction in employment costs involving approximately 15%
of the UK workforce; and
- a write-down of assets in Plastic Systems following the previous restructuring
and related supply chain issues.
The 2002 operating exceptional item related to the estimated lifetime
cost of a legacy product rectification issue of a
cosmetic nature, with the cash outflows expected to arise over the next
1 to 2 years.
The 2003 non-operating exceptional items related to the disposal of Creation,
Coldseal and Cestrum Building Products,
and includes goodwill of £23.6m previously written off to reserves.
There are no tax credits or charges relating to the 2003 exceptional items.
UK corporation tax in 2002 included credits
of £3.0m in respect of operating exceptional items.
An interim equity dividend of 5.25p per ordinary share was paid to ordinary
shareholders. No final dividend has been
proposed.
The reduction in shareholders funds in 2003 of £53.7m comprised
the profit and loss account deficit for the year of
£78.4m less the goodwill realised on disposal of £23.6m and
a net £1.1m currency translation gain.
View the financial results here http://www.heywoodwilliams.com/prelimresults.cfm
Bryco
Appears to be the Medicine Coldseal Needed
In our regular report on Company Notices and Liquidations last week we
made a rather off the cuff remark about the Coldseal Bryco conglomerate
which we have been well and truly corrected on. We are happy to report
that the new Coldseal appears to be a combination of all the good things
about Bryco and all the good things about Coldseal rolled together as
a national entity. What is more, the new company is already delivering
a healthy profit (according to January 2003 figures) and is keen to get
back into the conservatory market - but this time doing it properly.
Bryco was consulted last year about a possible takeover/merger to bring
a fully national Coldseal into being (Bryco being London based, Coldseal
extending only as far as Luton). In August of 2003 a deal was effected
whereby Coldseal Group took over both the Bryco and Coldseal trading assets
at net asset valuation.
All of the old trading Companies were placed into liquidation on 3 Feb
2004 - and all guarantees and creditor positions were transfered into
the new Company. The loss making conservatory company was also closed
down and a £2m recovery/restructuring operation was instigated.
Over 1200 jobs were also secured. All of those transactions were presided
over and documented by Eversheds and Wollastons Law firms. All required
revenue clearance was obtained. Heywood Williams PLC still owns 19% of
The Coldseal Group.
The Coldseal Group has a net asset value of circa £5.3m (net current
assets £3.1m) as at 3 March 2004. January profits show a healthy
return to the black at £274k on a turnover of £5.6m (July
2003 figures prior to merger £900k loss on £5.2m turnover).
There are no current legal cases involving The Coldseal Group. Projected
turnover for the year 2004 is £75m with projected profits for the
same period of £3.5m, and a current order book of £16m.
'We are proud of what we have achieved here in little more than five months.
We were not responsible for the previous loss making company and we hope
not to be tarred with that brush', says Barry Westwood, National Contracts
Director.
'After enormous effort and investment we have a manufacturing set up to
be proud of and at present are making over 5000 windows and 7000 units
per week.
'As for conservatories, well it was a nightmare, losing £2m per
year. But we do of course have the conservatory opportunity safely tucked
away for better days and a 5 million name and address database to go with
it. Coldseal will rise again on the conservatory front but next time it
will be set up correctly.
'Without conservatories we are quite possibly now one of the largest 'window'
companies in the UK. The mind boggles at what we could achieve here but
at the moment it really is feet on the floor time and sleeves rolled up'.
The Gl@zine has been invited to see for ourselves the substance of this
story and we shall report further in due course after a company visit
next month.
Window
of Opportunity as Local Business Deal is Sealed
Warmseal,
a window, door and conservatory businesses based in the North East, says
that it stands ready to develop its strong market position following the
announcement of a successful management buyout.
Warmseal,
based in Throckley near Newcastle-upon-Tyne, has been purchased from its
founders by the board of directors responsible for running the business
over the last two years. However, the new owners maintain that it is very
much business as usual.
Speaking on behalf of the new board, Managing Director Kevin Taylor said:
‘We are committed to upholding the values laid down by the company’s
founders Terry and Judith Holliday. They built the business on firm foundations
– the highest possible quality products and customer service –
and we believe that by playing to these strengths we will achieve further
growth.’
Since Warmseal was established in 1987 it has rapidly expanded and developed
a significant share of its market, which is estimated at £31 million
in the Tyne and Wear region alone. Now occupying a five-acre site on the
Westway Business Park and a member of the WHS Halo fabricator network,
Warmseal is a thriving independent manufacturing business and has four
individual factories each housing a separate business function.
Profitable retail, trade and commercial business arms helped Warmseal
to a £8.8 million turnover last year, an impressive performance
the new board of directors - which also comprises Paul Jennison (Operations
Director), David Luke (Sales and Installations Director), David Reed (Production
Director) – are now focussed on improving.
Kevin Taylor added: ‘Warmseal has all the key ingredients to go from
strength to strength – state-of-the-art technology, efficient manufacturing
processes and crucially the experience and expertise of our staff. To
any business looking for faultless service I’d recommend a trip up
north – it’s not grim anymore in fact, the short and longer
term outlook couldn’t be brighter.’
K2
Launches FMB Partnership at Interbuild
Interbuild 2004 is to provide the forum to launch an innovative partnership
between leading conservatory roof system manufacturer, K2, and the Federation
of Master Builders, one of the most highly regarded trade bodies in the
UK.
K2
will be showcasing its new, FMB-backed Approved Installer scheme at the
show as part of THE BIZ, a new area created by the FMB in partnership
with Interbuild. K2 will be constructing an impressive large span structure
to provide a stylish enclosure for THE BIZ, demonstrating the expertise
of the company’s Architectural division.
Explains Iain McInnes, Marketing Director at K2: 'Our success in the domestic
conservatory market since the company was founded just four years ago
has been phenomenal. We are now a serious contender for the number one
market position, supplying the roofing systems for approximately 20% of
all UK installations and growing year on year. With this enviable track
record, and our experience of designing, fabricating and installing larger,
more complex structures, both in the UK and the USA, we decided to expand
into the commercial market with an Architectural Division.'
K2 Architectural Systems will offer a bespoke survey, design, manufacturing
and installation service to the construction industry for large scale
applications such as swimming pool enclosures, restaurant extensions and
school projects. Specifiers will be able to select whether to commission
K2 Architectural Systems to simply design and manufacture the system,
or to offer a complete solution to them.
While K2 is expanding its interests into the commercial sector, the company
is still maintaining its drive for innovation in the domestic market,
with the launch of the K2 Approved Installer Scheme. The consumer assurance
initiative is the first to be backed by the FMB and will enable conservatory
installers to build customer confidence into all their sales.
Explains Iain McInnes: 'Consumer confidence is a key factor in the conservatory
industry’s ability to reach its full market potential. The K2 Approved
Installer Scheme has been designed to address this issue and combines
K2’s expertise in the sector with the FMB’s 60-year reputation
for excellence. The result is a scheme that offers real benefits to the
consumer along with a range of business and marketing support tools for
the installer.'
K2 has already secured several major installation companies to join the
scheme and expects to have at least 100 members within the first year.
Membership will be based on the FMB's strict criteria and will entitle
installers to a range of marketing services and collateral from K2, as
well as providing them with an excellent sales advantage.
Comments Ian Davis, Director General of the FMB: 'K2 is an extremely dynamic
and innovative company that has identified a market need and addressed
it. Rather than just paying lip service to the issue of consumer confidence,
they approached us to help them develop a scheme that will have meaningful
benefits for both consumers and installers. We are proud to be involved
in the K2 scheme and expect it to become a benchmark, not only for the
conservatory industry but for the entire home improvement sector.'
For further information on K2 Architectural Systems or the K2 Approved
Installer scheme contact K2 on tel: 01204 554 580.
Alcoa's
$200,000 Grant to NYC Mayor's Fund is Largest of $1.7m Alcoa 9/11 Relief
Fund
Alcoa has announced a $200,000 grant to the New York City Mayor's Fund
to Advance New York that will be used to help educate New York residents
on disaster response, specifically, what individual households should
do to prepare for disasters. 'As a corporate citizen in New York, Alcoa
hopes that this initiative can help make the city even safer,' said Alcoa
Chairman and CEO Alain Belda.
The grant is part of $1.7m for first-responder initiatives contributed
by the company from the Alcoa Relief Fund, created following September
11th. The Alcoa first responder grants have helped train nearly 30,000
responders and citizens in 109 Alcoa communities in 20 different countries
where the company operates.
The grants allowed Alcoa plants and offices to work with community firefighters,
water rescue teams, local chapters of the American Red Cross and Red Crescent
Societies, hazardous materials teams, police departments and community
groups to provide critical skills training, and to identify and train
others in the communities in CPR, logistics and other emergency needs.
Alcoa's First Responder Training Initiative builds on the company's commitment
to safety and health and is designed to help citizens trained in basic
medical and/or civil response procedures so that they can help supplement
professionals and foster community preparedness for emergencies and prevention
of casualties or serious injury.
9/11 Disaster Sites
In addition to the Ready New York grant, the Alcoa Relief Fund also gave:
* $100,000 to the Commonwealth of Pennsylvania for the Mayor's Fund to
Advance New York for first-responder training;
* $500,000 to support small and medium-sized businesses in the area around
Ground Zero in New York; and
* smaller grants to a local firehouse in New York City, a youth-serving
organization, the National Trust for Historic Preservation and Save America's
Treasures for the conservation of the only surviving scale model of the
World Trade Center.
James
Harcourt Helps Put the Wind in Blue Peter's Sails
Prestige
window, door and conservatory brand James Harcourt, have offered a helping
hand to the world's fastest shammy‚ Terry Turbo‚ Burrows, by
donating a set of windows for his latest record breaking attempt on popular
BBC television Programme Blue Peter.
Fresh from his latest effort at President Windows in Oldham - the latest
installer to join the James Harcourt network - Terry, officially the world
fastest window cleaner, narrowly missed out on breaking his long-standing
record of 9.91 seconds.
Commenting on the attempt, Terry said: 'Despite the disappointment of
missing out on breaking the record, it was fantastic to get the opportunity
to showcase both my talents on the quality of James Harcourt windows and
on such a popular programme. I must thank James Harcourt and President
Windows for stepping in at the last minute to produce the windows to the
exacting Guinness Book of Records specifications.'
Official Guinness record attempts have to adhere to strict guidelines
and be independently adjudicated by qualified Guinness representatives.
In order to break the record, Terry has to clean three 45inch square windows
and a windowsill, using a 12inch squeegee. Time penalties are imposed
where smears or streaks are left on the window. Jason Currall, Marketing
Manager of James Harcourt, added: 'With the windows in Oldham on the Thursday
before the show, it was a big effort to get them down to the television
studios in London in time for filming on Friday afternoon. Unfortunately,
Terry narrowly missed out on breaking his record at both occasions, but
with any luck it wont be long before he reaffirms his position in the
record books.'
When
was the last time you loaded or unloaded a patio door? Occasionally large
windows or doors can be a struggle to load on smaller vehicles. ‘For
patio doors – especially in large numbers – this is always the
case,’ said Sliders UK’s director Mike Spain. ‘Right from
the start we specified 7.5 tonne drop well trucks with ramps – modified
Luton vans were never going to be suitable or big enough for us.’
The third vehicle in Sliders’ fleet has just been delivered. In addition
to a sleeper cab for long-range deliveries, the Iveco, supplied by Leyland
Truck Centre, also features the same walk-on walk-off facility as the
first two vehicles, each of which is capable of safely transporting over
40 patio doors at a time.
The trucks are part of a framework of high capacity initiatives which
the company says keep it on target to supply 250 patio doors per week
in just its second year of trading.
Tel: 01772 698222
Web: http://www.sliders-uk.com
Eurocell
Profiles (UK) Invests in a New Extrusion Hall
Eurocell
Profiles Ltd, part of the Plastics Converting division of Tessenderlo
Group (Belgium), is investing in the construction of a new extrusion hall.
With the investment, which amounts to 4 million GBP, Eurocell Profiles
is extending its production and storage capacity at its main Clover Nook
site in Alfreton, Derbyshire. The new extrusion hall is to be operational
by the end of 2004.
Eurocell Profiles Ltd, as part of Fairbrook plc, produces a wide range
of high-tech PVC products for construction and renovation, which are marketed
under the brand names Eurocell and Pinnacle.
Fairbrook plc has 6 production and 53 distribution sites throughout Great
Britain.
Eurocell Profiles Ltd is the third largest window profile manufacturer
in the UK.
The Plastics Converting division of Tessenderlo Group, employing 2,500
people, produces PVC profiles for window and door systems as well as PVC
pipes and fittings for construction. The division’s turnover totalled
500 million EUR in 2002.
Tel:. 01773 842 100
Email: mailto::marketing@eurocell.co.uk
Web: http://www.eurocell.co.uk
Record
Sales for Siegenia-Aubi Confound Pundits
The
latest sales figures from hardware and ventilation specialist, Siegenia-Aubi
Ltd, will surprise industry pundits predicting a decline in the UK tilt
and turn market. The UK arm of German parent company, Siegenia-Aubi KG,
is celebrating record sales in January on the back of significant growth
in 2003 - including 15% increases via one distributor alone - and the
firm is expecting to double its growth through 2004.
2003 saw the firm celebrate ten years in the UK and general manager, Léann
Hearne, is optimistic about the year ahead: ‘Some people are predicting
a downturn in the TBT market, but I don’t share that view. My gut
feeling is that we’re seeing the beginnings of a cyclical resurgence
in this sector.’
Léann believes that Siegenia is starting to see the results of
strategy changes implemented three years ago in the UK and she plans to
continue building on this success in 2004. ‘We’ve got some great
new products, initiatives and partnerships in the pipeline for 2004,’
she says, ‘It’s going to be an exciting year.’
Tel: 024 7662 2000
Email: mailto:si-uk@siegenia.com
Web: http://www.siegenia.de
Deceuninck
North America to close Delaware Plant in US
Deceuninck, worldwide manufacturer of PVC window systems and profiles
for the construction industry, announces that its U.S, subsidiary Deceuninck
North America will be closing its Wilmington plant (Delaware, US). This
decision is part of the consolidation of extrusion sites following the
acquisition of Vinyl Building Products (VBP) in July of 2003.
The combination of Dayton Technologies, a Deceuninck acquisition in 1997,
and VBP resulted in plant locations in Ohio, New Jersey, Delaware and
Arkansas with Wilmington as the smallest facility, employing approximately
35 workers. Employees will have employment opportunities at the Ohio and
New Jersey facilities. The closing is expected to be completed within
the next two months.
Michael Huffless, the COO of Deceuninck North America, said the decision
to consolidate operations is based on the higher efficiencies of the larger
plants. 'Today's competitive climate demands the most efficient structure
and we are positioning our company to compete in the global market', notes
Huffless. 'We anticipate minimal or no disruption of deliveries during
this transition period. Being a production relocation, this closure will
not involve any loss of turnover for Deceuninck North America', adds Huffless.
Deceuninck is an integrated group of world format, specialised in compounding,
design, development, extrusion, finishing, recycling and injection moulding
of PVC-U systems and profiles for the building industry. The company is
active in more than 32 countries, has 22 subsidiaries (production and/or
sales) and is supported by 2700 personnel, of which 610 are in Belgium.
In 2003 the Deceuninck Group achieved consolidated sales of 469 million
euros (including 6 months consolidation of the Thyssen Polymer Group).
Wymar
Group Invests in a New Product Line
Wymar
International NV, part of the Plastics Converting division of Tessenderlo
Group, has invested in a new product line 'S3000' of PVC window and door
systems and in an extension of its production capacity. The investment
of over 2 million EUR, is to consolidate Wymar’s market share in
Benelux and France and to strengthen its presence in growing markets,
primarily in Eastern Europe.
The new 70 mm line, which offers improved acoustic and thermal isolation,
was launched at the Polyclose fair in Gent (Belgium) in January 2004.
Wymar Group produces a wide range of PVC profiles for windows and doors
and their external and internal finishings. As well as its headquarters
in Belgium, Wymar Group has sites in France, UK, Poland and Hungary.
The Plastics Converting division of Tessenderlo Group, which employs 2,500
people, not only produces PVC profiles but also PVC pipes and fittings
for the construction industry. The division’s turnover totalled 500
million EUR in 2002.
Web: http://www.wymar.com
Sapa
Acquisition Set to Transform UK Business
Last
year's acquisition of Belgium-based Remi-Claeys by Sapa AB is set to impact
heavily on Sapa Building Systems' business in the UK. The addition of
Remi-Claeys, renowned throughout much of Europe for its strength and expertise
in the fenestration sector, means that Sapa Building Systems can now offer
a greatly extended product range to the European and more specifically,
the UK markets.
Sapa Building Systems' Sales & Marketing Director, Jon Palethorpe
explains: 'Remi-Claeys' building systems division, RC System, is already
established in the UK and, by combining our product ranges, we believe
this places us in a unique and very strong position. Our collective products
and technical capabilities will not only elevate our position in the top
end specification market, but will ensure our continued competitiveness
in the public and residential sectors'.
Neil Garner of RC System added: 'The RC System range is a highly sophisticated
and unrivalled range that is proven in practice in countries across Central
and Eastern Europe. Our impressive portfolio of projects has generated
a great deal of interest in the UK amongst specifiers and fabricators
alike.'
Sapa AB in Sweden has created a new Europe-wide 'Building Systems' division
that will enable Sapa Group companies to work far more closely together.
It was just such co-operation between group companies that led to the
rapid and successful introduction and launch of Sapa Building Systems'
new MRV curtain walling system last year.
Tel: 01684 853500
Absolute
Power: Bolton Fabricator Takes Another Step Up with New Trade ‘Cash
& Carry’
Trade
and commercial fabricator, Absolute Windows Ltd of Bolton, has opened
a Cash and Carry superstore for window installers. Based in Manchester,
the new 12,000 sq ft unit will hold ready-made frames in stock, offering
an ideal service for the smaller installer and builder.
Absolute
Windows started life in 1988, with partners Jim Dance and Tony Marsden
already having worked within the glass and glazing industry for many years.
The two men honed their skills and experience to build up the company.
From humble beginnings in small garage premises in Salford, Absolute Windows
developed quickly and, in 1995, found itself operating from 4000 sq ft
premises in Bolton.
By 2001, the company occupied 15,000 sq ft premises and employed 35 staff.
However, the last two years have represented some of the most successful
for the company: Following careful investments in staff, IT solutions
and machinery, Absolute Windows increased its weekly output from around
400 frames per week to around 700 within that period. The company now
employs 50 staff in total and is expected to reach a £5 Million
turnover by the end of 2004, with the Absolute fabrication plant in Bolton
due to increase weekly output to over 1000 frames.
The new Cash & Carry store, called Classic Trade Frames and open from
March 1st, will be run by a third Director, Richard Goodwin, a long-time
colleague of Jim and Tony. Classic Trade Frames will offer a loyalty trade
card registration service for installers, providing discounts for regular
customers. Windows and doors will be manufactured from the Synseal Shield
system and a number of ready-made styles will be kept in stock for rapid
turnround.
A significant investment has been made in machinery, including a state-of-the-art
new Kombimatec automatic door router, and Classic Trade Frames aims to
sell around 500 frames per week within 12 months. The company has also
formed a partnership with another local outfit supplying trims, panels
and glazing consumables, providing a ‘one stop shop’ service
for installers.
Says Director Jim Dance:
‘We want to provide smaller installers and builders with what is
most appropriate for their needs. Building extensions represent a big
growth area for local builders and installers at present, and we want
to be able to deliver a product and service that allows them to maximise
the business opportunities around. Speed is really of the essence.’
Absolute Windows has also enjoyed success with its conservatory and commercial
divisions. The company recently invested £100,000 in a Stuga Ecoline
centre to further improve its conservatory service, and has switched to
using Synseal’s Global roofing system. Director Tony Marsden also
won a commercial contract at the end of 2003 that is worth up to £5
million to the company over 5 years.
Absolute will also shortly be adopting lean manufacturing principles which
make good use of up-to-the-minute information technology in order to give
customers the best possible service: Orders will be emailed in from customers,
purchase orders automatically raised and suppliers alerted in one smooth
process.
The address for the new Cash & Carry store is: Classic Trade Frames,
Unit 7 Priestly Road, Wardley Industrial Estate, Worsley, Manchester M28
2LY. Tel: 0161 793 1166, Fax: 0161 793 1177.
Muskita
Aluminium to Cover the Athens Olympic Stadium
The
contract to supply aluminium glazing profiles for the roof of the Athens
Olympics stadium has been awarded to Cyprus based Muskita Aluminium Industries.
The roof – locally nicknamed ‘the jewel in the crown’ –
will cover an area of 10,000 square metres, meaning that almost 95% of
the 75,000 seated spectators will be covered.
The design of the roof is not solely aesthetic; the materials have been
carefully selected by Spanish architect Santiago Calatrava to absorb most
of the sun’s heat to protect the spectators from ultraviolet rays
– an important factor considering the sweltering conditions in Athens
during summer.
When completed, the roof will have two giant arches having a span of 304
metres and a height of 80 metres. These will provide support for the cables
holding Plexiglass panels. The total weight of the roof will be some 16,000
tons.
Muskita – which is the parent company of Bristol based Universal
Architectural Aluminium Systems – was involved in developing a bespoke
aluminium glazing system in conjunction with the architect and Nicosia
contractor Gallop Engineering.
The Olympic stadium is part of the Athens Olympic Sports Complex in Maroussi
(a northern suburb of Athens). Many events of this summer’s Olympic
Games will take place there, including the opening and closing ceremonies.
Email: mailto:sales@universal-aluminium.co.uk