NEWS
Wesfarmers buckle under shocking performance from Bunnings UK&I
Bunnings UK and Ireland (BUKI) is expected to report an underlying loss before interest and tax of £97 million ($165 million) for the first-half of the 2018 financial year.
“It is clear that a significant amount of change has been driven through Homebase since the acquisition and the disruption caused by the rapid repositioning of the business has contributed to greater than expected losses across the Homebase network,” said Bunnings group MD Mr Schneider.
Following an unscheduled
review of the performance and strategic plans for BUKI, parent company Wesfarmers advises of a number of significant items that are expected to be included in the group’s 2018 half-year financial
Screwfix opens new store in Burntwood
Screwfix opened its first store in Burntwood on February 1 at Burntwood Business Park. The new branch will create 13 new jobs in the area and will help local tradespeople get what they need as quickly as possible to get the job done. Screwfix’s new Burntwood
store manager, Andrew Figgitt is proud of the contributions the new store has made to employment figures in the region, he said: “We’ve created 13 new jobs and employed people from around the Burntwood area. “Our new team includes people with all different levels of experience, focused on providing superb customer service to meet the needs of our busy trade customers. Everyone here is really looking forward to the store opening.”
Mr Figgitt believes the store’s convenient location, extensive product range and ability to provide a Click & Collect service in as little as one minute from ordering, will be a real bonus to local tradespeople and DIY enthusiasts who need to get back to their jobs.
“I’m confident we’ve got a great location here in Burntwood. My team and I have already been getting to know local businesses and tradespeople and look forward to working with these hardworking, friendly people.”
4 DIY WEEK 9 FEBRUARY 2018
Carpetright has announced an update on trading for the 11 weeks ended January 13, 2018. Despite reporting sales growth in the third quarter, trading in the important post-Christmas period
results, subject to completion of Ernst & Young’s review of the financial statements. These are: Non-cash impairment of £454 million ($795 million) before tax, with £444 million ($777 million) to be recorded against goodwill recognised on the acquisition of Homebase and £10 million ($18 million) against the remaining book value of the Homebase brand name.
Stock write-downs of £37 million ($66 million), relating to excess, unsuitable and display stock, and store closure provisions of £40 million ($70 million). A write-down of BUKI deferred tax assets of £53 million ($92 million), reflecting a more conservative outlook for the business, to be reflected in the group’s income tax expense. In
addition to the significant items detailed above, BUKI is expected to report an underlying loss before interest and tax of £97 million ($165 million) for the half year, reflecting the “poor trading performance of Homebase”. Wesfarmers MD Rob Scott said the group is focused on delivering satisfactory returns to shareholders by improving its underperforming businesses, proactively managing its portfolio and investing in value-accretive growth opportunities. “The Homebase acquisition has been below our expectations which is obviously disappointing. In light of this, a review of BUKI has commenced to identify the actions required to improve shareholder returns,” Mr Scott said.
Bunnings opened its first pilot
store in February 2017 and now has 19 trading. The most recent openings include Warehouses in High Wycombe, Newmarket, Walthamstow and Hanworth, which were all opened for business within the same day.
Carpetright issues profit warning with trading “behind expectations”
has been significantly behind expectations, the company has said. Total group sales were
reported as down by 2.3%, and sharp deterioration in the UK trade has had a “significant impact on profitability”. Carpetright issued a profit
warning in its trading update, with a revised full year profit guidance in the range of £2.0million to £6.0million. UK trading was impacted by lower customer footfall, with transaction numbers down significantly year-on-year, and like-for-like sales saw a decline
Houzz Shop launched in the UK
US home renovation and design platform, Houzz has brought its home products marketplace to the UK with the launch of Houzz Shop, making more than 100,000 products and materials available to British consumers.
The launch – the first for the company outside of the American market – means that UK homeowners, design enthusiasts and home professionals can buy thousands of products and materials from over 2,500 sellers from across Europe, directly on the Houzz site and app. The company says Houzz UK’s
product catalogue is growing daily and boasts items for major renovation projects and self
builds, including a vast range of DIY and garden products, as well as furniture and small decor items, from paint, tools and tiles, to rugs, lighting, and bathroom ranges. Houzz co-founder and CEO Adi Tatarko said: “Since day one, we have been focused on creating the single best home renovation and design experience by bringing everything people need to improve their homes together under one roof. We’re delighted to bring the Houzz Shop to the UK so that people can discover, learn about, and now buy all the products and materials to complete their home projects directly on Houzz.” Houzz introduced its home
of 3.6% in the 11 weeks, with a decrease of 1.4% within the flooring category, and a further material decrease in bed sales. Carpetright continues to implement its strategic investments with four stores opening and 14 closing in the year to date, giving a net reduction of 10.
Chief executive Wilf Walsh, said: “While average transaction values were up year on year, the number of customer transactions since Christmas was sharply down, which we believe is indicative of reduced consumer confidence.”
Meanwhile, it was confirmed this week that Bunnings UK & Ireland MD PJ Davis, who initially announced a three-month break in January, has retired and will not be re-joining the business after all.
Rustins back in production within week of fire
Woodcare and specialist paint manufacturer, Rustins’ facilities are already up and running, working to replenish the stock that was destroyed in huge blaze that devastated the warehouse and offices at its site in North London. Nearly 100 firefighters and
officers attended the major fire, which broke out on the evening of Monday, January 8 at Rustins on Waterloo Road, Staples Corner. The company confirmed that the blaze “destroyed the majority of our finished goods and our administrative offices”. However, manufacturing facilities were not damaged and the factory was back in operation by Monday, January 15, working to replace the stock that was lost.
products marketplace in the US just over three years ago. The UK is the first country to launch the Houzz Shop outside of North America, prompted by a huge growth in Houzz’s UK community, which now totals more than two million monthly unique users and over 65,000 active home renovation and design professionals.
Rustins said last month: “Shortly after the fire we restored our IT systems and our administrative activities are back and functioning. We will take orders and despatch products as stocks are replenished.”
The company added that it is grateful for the response from the industry. “We are grateful for the messages of support from our customers, suppliers and others in the industry.
Thank you all for your continued support.”
www.diyweek.net
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