NEWS NEWS IN BRIEF


n Kelkay Ltd has been selected as one of Yorkshire’s fastest growing companies at a business awards event organised by leading law firm, Ward Hadaway. Kelkay Ltd chief executive, Antony Harker, commented “It’s such an honour for our business to be recognised as one of Yorkshire’s fastest growing businesses. This accolade is thanks largely to the dedication, skills and sheer hard work of my fantastic team together with the support from our loyal garden market customers.” n Japan’s influence on Vincent van Gogh is the subject of a major new exhibition in Amsterdam which has been designed with the help of AkzoNobel’s color experts and Sikkens paint brand. “Color is our core business at AkzoNobel and we know how much it matters in people’s daily experiences” said the company’s COO of Paints and Coatings, Ruud Joosten. Running until June 24, Van Gogh and Japan follows the museum’s recent Dutch in Paris 1789-1914 exhibition, which was also staged in collaboration with AkzoNobel. n The UK domestic garden products distribution market was worth an estimated £4.9bn in 2017 at retail selling prices (RSP), representing an increase of 3% compared to the previous year. The DIY sector and garden centres account for the majority of sales of garden products, reflecting their diverse product range, especially in garden equipment and leisure products, but these are facing increasing competition from other channels - in particular online specialists, but also discount chains and grocery stores” said Fiona Watts, Editor at AMA Research. n A very successful draw was held at Home Hardware Southwest’s Spring Trade Show, which raised £400 to be split equally between Cancer Research and The Rainy Day Trust. Home Hardware Southwest extended its thanks to all members, suppliers and staff who generously contributed towards these charities.


4 DIY WEEK 23 MARCH 2018


Softer sales across B&Q & Screwfix reflect “uncertain” UK outlook


Despite Screwfix posting a robust performance for the year, with LFLs up 10.1%, “softer sales patterns” were reported by the chain and B&Q in Q4, as demand for big-ticket lines slowed. Sales across Kingfisher UK &


Ireland operations were up 0.4% (+0.6% LFL) to £5,003million, bolstered by a continued strong performance by Screwfix and modest


price increases inflation. The posted by Screwfix


were offset by the impact of last year’s B&Q store closures and the “disruption” of the transformation of the business, said Kingfisher. The results for the year ended January 31, 2018 mark


to deliver a £500m sustainable annual profit uplift by the end of FY 20/21.


During Q4, however, the UK &


Ireland businesses experienced softer sales patterns, with B&Q reporting declines of -5.1% on a like-for-like basis and Screwfix up just 7.1% LFL. The business has attributed this to a slowdown in demand for big ticket categories, such as kitchens. Gross margins were also down 30 BPS and a focus on cost control continues, says the company. Meanwhile, retail profit grew by 5% to £375 million. B&Q


total the


second year in Kingfisher’s five- year transformation plan that aims


sales its completed declined


by 5.3% to £3,488million, which reflected annualisation of


store closure programme. LFL sales declined


by 2.8% after a 0.7% benefit from sales transference


associated


with the store closures. LFL sales of seasonal products were down 2.8% while sales of non-seasonal products, including showroom, were also down 2.8%. Screwfix total sales increased by 16.7% (+10.1% LFL)


to


Carpetright set for closures ahead of CVA announcement


Carpetright have announced it is considering a company voluntary agreement in a bid to rescue the business with a restructuring plan.


Carpetright chief executive Wilf


Walsh said: “I am pleased that we have secured this additional support from one of our major shareholders as we continue to explore the feasibility of a CVA and a conditional equity issue. These further cash resources will enable us to make the necessary decisions free from short-term funding pressure.


“The company has worked


hard over recent years to address this legacy issue and reduce the size of its property estate, however many of these poor performing stores still have long leases to run, which has limited our ability to exit a meaningful


“The board is therefore exploring the feasibility of a CVA in order to expedite the rationalisation of its property portfolio, with the clear objective of establishing a right- sized estate of contemporary stores, on economic rents, complemented with a compelling online offer. “The


conditional


number in the short-to-medium term.


Mr Walsh continued: “While the board is confident that its brand investment and store refurbishment


strategies


have been, and will continue to be, successful in enabling Carpetright to respond to increased


competition, it


believes additional measures are necessary to directly address this legacy property issue.


Number of homeowners renovating over moving increases five-fold in five years


The number of homeowners choosing to stay put and invest in their existing property instead of moving has soared in the past five years, according to a new report from specialist insurer Hiscox.


In 2013 just 3% of homeowners took the decision to improve instead of move, but fast-forward five years and this figure has increased to 15%, to one in


further four rising (26%) amongst


millennial homeowners (those aged 18 – 34).


The subdued and costly property


market has been a clear catalyst for this trend. When questioned,


homeowners cited prohibitively high property prices (25%), stamp duty (13%), a sluggish property market (15%), potential interest rate rises (8%) and even the uncertainty caused by Brexit (8%), as reasons for investing in their current home instead of looking elsewhere. UK local councils have seen a near one third (29%) rise in the number of


planning permission


requests made by homeowners over the last ten years, followed by living room extensions (113%). Overall, bathroom and kitchen renovations are still the most popular, but garden renovations are now the third most common home


improvement, and the renovation type that’s seen the most growth. Head of direct home insurance


at Hiscox UK & Ireland, Phil Thorn, commented: “The decision to improve instead of move is a new normal for homeowners whose lifestyles are evolving. People are looking at ways to adapt their existing


homes to meet their


changing needs, whether that’s a growing family or the beginnings of a new home business.”


equity


issue, which is intended to follow a successful CVA, would recapitalise the group and we believe provide the necessary funds to accelerate its turnaround and address the competitive threat from a position of financial strength.”


He said it would be “business as usual” for stores during Easter trading and it would remain in “close contact” with staff over its restructuring plans.


Staff at one of the UK’s leading nurseries is celebrating this month (March, 2018) after winning two awards from two garden centre groups it supplies plants to.


Wyevale Nurseries in Hereford was awarded Plant Supplier of the Year 2017 from Klondyke Group and also the Most Innovative Plant Supplier Award from Wyevale Garden


Centres, which is a


separate company under different ownership.


Retail sales manager at Wyevale Nurseries, Colin Stanley explained: “We were delighted to be awarded the Plant Supplier of the Year 2017 Award at the recent Klondyke Group’s annual plant show. “In our first three years of supplying the group we have thoroughly enjoyed working with the centres and head office team. It’s always great to see plants taking centre stage in a retailer’s offering. We are looking forward to continuing to build an even stronger relationship going forward.”


www.diyweek.net


£1,515million driven by strong growth from its specialist trade desks, strong digital growth (e.g. mobile +86%; click & collect +38%); and the continued roll out of new outlets. Screwfix opened 60 net new outlets during the trading period, taking its portfolio to 577.


Wyevale


Nurseries staff celebrate two award wins


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