NEWS INBRIEF
Mayor launches new London boiler scheme
£10m is available for smaller London companies to replace their old, inefficient boilers with modern, energy-efficient models under Mayor of London, Sadiq Khan’s, Cleaner Heat Cashback scheme. The offer is for SMEs based in London with old, inefficient heat- ing system to apply for between 30% to 40% cashback towards a modern, cleaner heating system. It is a first-come, first-serve offer available to building owners, tenants responsible for property maintenance, or who receive per- mission from landlords to change
heating systems. Cleaner Heat Cashback will run until 31 March 2020 - or the £10m has been al- located - whichever comes first. The BMF was involved in discus- sions prior to the announcement with City Hall staff and other heating industry partners to con- sider working arrangements such as eligibility and practicalities. John Newcomb, BMF Chief Executive, said: “We welcome and support this announcement that builds on earlier residential schemes by successive Mayors. The fact that Cleaner Heat is now aimed at commercial premises
signals not only a political deter- mination to tackle poor air quality, but seeks to change the thinking of SME owners towards their day- to-day running costs”. “Significant savings can be made in business costs by upgrad- ing to a modern heating system that BMF members make and supply. The 30% rate is generous and ought to entice companies to act. Although his offer is con- fined to the capital, the Mayor has moved to help London firms to cut bills, reduce emissions, improve air quality and encourage further investment”.
DIY blues cost Travis Perkins dear
Travis Perkins posted a £123m pre- tax loss for the first half of 2018, thanks to its DIY-chain Wickes. Across the group as a whole
revenue grew by 4.4% to £3.36bn in the six months to June 30 2018, compared with the same period a year earlier.
In the general merchanting division, total revenue rose by 0.9% to £1,065m, with oper- ating profits down by 11% at £86m. The plumbing and heating division grew like for like sales by nearly 20% to £774m, con- tinuing to reap the rewards of its cost-cutting and transformation programme. The performance was ahead of expectations, with volume growth coming from online channels, the branch network and the lower margin wholesale business.
The Contracts division grew ahead of their markets and took market share with revenue for the first half of £718m, up 6.4%. After a slow start, like-for-like growth rates accelerated through- out the first half, reaching 9.5% for Q2. Five Keyline branches were closed, consolidated or switched to the Travis Perkins brand with over 90% of sales retained within the business.
The consumer division saw total
revenue fall 1.8% to £807m. Toolstation performed well, with total sales growth of 17.6%, and 10.7% on a like-for-like basis. 22 new stores opened in the half taking the total network to 317. Wickes’ sales fell by 5.8% in the eriod, and by 7.7% on a like-for- like basis. Gross margin was down due to competitive pressures
and operating profit declined by £14m. As a result, the Group posted an impairment of £246m in relation to goodwill. CEO John Carter said: “Our businesses in General Merchant- ing, Contracts, Toolstation and Plumbing & Heating achieved good sales growth despite a volatile first half. They ended the period with encouraging momen- tum and, supported by a contin- ued focus on cost, they remain on track to deliver modest profit growth for the full year. Wickes has had a far more challeng- ing period as weaker consumer spending trends, combined with a difficult competitive environ- ment, have held back profitability. Consequently, the Wickes team is executing a significant cost reduc- tion programme.”
Minister opens new Ibstock factory The Rt Hon James Brokenshire
MP Secretary of State for Housing, Communities and Local Government has opened Ibstock Brick’s new factory in Leicestershire. The brickmaker currently produces more than 850 million bricks a year at 20 factories across the UK.
The new factory, which has been named Eclipse, will more than double brick production at the company’s Leicestershire headquarters to 190 million soft mud bricks a year. The new factory alone provides sufficient volume to build 10,000 to 15,000 additional new homes each year.
August 2018
www.buildersmerchantsjournal.net
BMF shortlisted BMF has been nominated for the Trade Association Awards in the Association of the Year category as well as the Conference, Website and Leadership categories.
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George Clarke to speak at YM event Architect and TV presenter George Clarke will be a Keynote Speaker at the BMF’s Young Merchants Conference in October. Clarke is both a campaigner and an educator and in 2017 founded MOBIE – the Ministry of Building and Innovation and Education.
SCA Timber grows new name
SCA Timber is changing its name to SCA Wood integrating all six business areas: wood products, forestry, pulp, paper, energy and logistics into a unified SCA Group. SCA Timber Supply will therefore become Building & Supply Solutions and SCA Timber Mill Sales will become Industrial Solutions.
Stamco joins H&B Hastings independent Stamco has joined the H&B merchant group. With a turnover in excess of £30 million, Stamco have grown rapidly and now trade out of five branches.
Md John Cornelius said: “We are tremendously excited to be joining the H&B Group.” Nick Lander, md of H&B, added: “Stamco combine state-of-the art branches with superb customer focus. They are a credit to the merchant industry and we are delighted to have them with us.”
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