This Week's News

Eurocell launches £175m stock market flotation …with hints of future acquisitions

Eurocell is to float on the main market of the London Stock Exchange following an announcement on 4 March that shares would be made available as part of an Initial Public Offering (IPO).

Previous outright owners H2 Equity Partners will be retaining a significant shareholding in the business moving forward, an indication of its confidence in the strength of Eurocell.

As part of the IPO, a number of key external people have been appointed to bring significant additional plc and construction industry experience. This includes Robert Lawson, former chairman of housebuilder Barratt Developments and recruitment firm Hays, who becomes Chairman.

The move makes Eurocell the first PVC-U extrusion company to launch such a flotation.

Patrick Bateman, Chief Executive Officer of Eurocell plc, said: “We have been delighted by investor demand throughout the IPO process and now look forward to life as a quoted company.

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Network Veka hosts another fantastic AGM and Awards Evening

Around 240 people attended Network Veka's ever-popular AGM and Awards Evening in Stratford-upon-Avon.

Attendees were able to visit the day's specially-built 'Business Centre' where numerous companies and industry bodies were on hand to answer questions and give suggestions on all aspects of business; from finance and training to marketing and more. Visitors were particularly interested in Network Veka's new training offering - the Network Veka Academy.

Network Veka's MD John Ogilvie was joined on stage by Compere John Meredith to present the official AGM. John was quick to praise the many successes of the membership: “It was a record year on a number of measures... £64 million pounds worth of products fitted, in almost 18000 installations, which is up 9% over the previous highest registration total. That’s £1.25 million fitted per week!

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Major trophy haul for Glazerite installers at Network Veka awards

Glazerite installers have beaten all-comers yet again, scooping half of all the Regional trophies in the annual Network Veka awards plus the all-UK customer satisfaction trophy once again.

Customers of the trade fabricator took no fewer than five of the ten Regional awards, plus the national trophy and Fitter of the Year, as well as numbering 12 of the total 30 finalists and gaining three new entries into the organisation’s elite 100% Club.

Overall champion this year was last year’s Best Newcomer, Frames Conservatories Direct of Bury St Edmunds, also winning top Regional for the East of England. Shane Howells held the West of England and KJM Windows retained the South – both for the sixth time – while Goliath Homeworld had a fifth win for the Midlands and Cheadle Glass won a second time for the North West. Fitter of the Year went to Ronnie Pym and Mark Barnfield of Frames Conservatories Direct.

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Government must treble apprenticeships to tackle skills shortages – survey

Most tradesmen want the next government to raise the number of apprenticeship places from 110,000 to 400,000 to boost the availability of skilled workers – and a majority believe this is even more important than policies on immigration, according to a new survey published this week.

Just as the Chancellor announced a 20% minimum pay increase for apprentices to £3.30, the survey revealed that only 14% of tradesmen have taken on an apprentice in the last year, many citing cost as the biggest barrier and saying low pay is discouraging potential apprentices.

The research, carried out by multi-channel retailer Screwfix, also revealed that nearly three quarters of tradesmen believe the amount of tax their business pays is of great importance, 89% support current commitments to continue freezing fuel duty and 84% want the personal income tax allowance to increase to £12,500, believing that such measures would have a positive impact on their business and encourage growth.

Screwfix CEO Andrew Livingston, said: “As a key supplier to the trade, we wanted to give tradesmen a voice by gathering feedback and submitting it on their behalf to the Government. Many of our customers are busier than ever right now and it’s important we work closely with wider industry and Government to consider new ways to help them and to encourage growth in their businesses.”

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Budget 'uninspiring and empty' says GGF

The GGF has reacted to Chancellor George Osborne’s Budget by describing it as “uninspiring and empty”.

GGF Group Chief Executive Nigel Rees said: “It’s hard to find anything of great significance to our Members in this Budget and we’re disappointed that incentives to homeowners to make their properties more energy efficient are non-existent. On the manufacturing front, we hope the updated Enhanced Capital Allowance for designated energy-saving technologies will include glass and glazing products. The only other possible positive on energy efficiency is the proposal to bring forward the compensation for indirect costs for small scale feed-in tariffs by one year. This may assist our energy intensive flat glass manufacturers, but is a relatively tenuous benefit in what is sadly an empty and uninspiring Budget for our industry.”

He continued: “One positive announcement in the Budget was the Government’s proposal for “housing zones” to build more affordable housing by regenerating brownfield sites. Of course we welcome any initiative to increase new build but this one is fairly limited – looking at the South West and South East only. Aligned to this, another proposal that may help our industry is the plan for a “Help to Buy ISA” scheme which could stimulate new house buying and carry through to replacement windows and conservatories.

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February sees boom in commercial and retail construction

Commercial and retail construction contracts increased by almost 70 per cent in February according to figures released by Barbour ABI .

The value of projects awarded topped £1.1bn in February which is 67.9 per cent higher than this time last year and over a third (35.4%) higher than in January 2015.

Contracts for key projects such as the Pinnacle Building in the City of London were a major contributor to the surge and led to office projects accounting for a sizeable 70 per cent of all commercial and retail contracts awarded in February. Last month also saw a marked increase in the food-retailing sector, with projects making up 19 per cent of works handed out – a 10 per cent increase on February 2014.

Barbour ABI lead economist Michael Dal said: “It’s good news that commercial and retail construction is on the up as, sector-wise, it is the second biggest contributor to the overall industry in the UK after housebuilding.

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“A budget for votes, not business,” says BWF... but FMB approves apprenticeship initiative

The British Woodworking Federation has dismissed last week’s Budget as: “More about hunting for votes from Middle England and pensioners than backing business and growth.” 
Iain McIlwee, chief executive of the BWF, said: “If the Chancellor wanted to secure the votes from the 100,000 people working in the £3.8 billion wood products manufacturing sector in the UK, he needed to show better recognition that construction and manufacturing will be the key drivers for future growth.

He complimented the Chancellor on some initiatives such as the Help to Buy ISA and the 20 new housing zones, but continued: “Where was the support for the smaller builder? Where was the incentive for councils to invest more intensely in building in their regions? 

 “Our members will welcome the reduction in corporation tax, but tax remains complex and comes in many guises – for example, pushing up the minimum wage for apprentices above the recommendation of the Low Pay Commission doesn’t walk hand-in-hand with driving growth in apprentice numbers. Today the Chancellor spoke of a doubling in the number of apprenticeships, but we need to be careful that we are comparing like with like.

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A ‘short term budget’ but with much good news for building - Glenigan

The Chancellor has, predictably, focussed on short-term political priorities rather than long term investment needs, according to Glenigan Economics Director Allan Wilén, though the forecast faster growth in the economy and household incomes should bolster private housing and non-residential construction.

He said “Inevitably 50 days before the general election, the Chancellor’s attention has been on short-term. However, there has been no big pre-election give away, with the government choosing to use better than expected public revenues to tackle the deficit more quickly than previously planned.

 “The Chancellor’s Budget proposals are centred upon supporting and encouraging private sector investment and economic growth. This includes his ‘surprise’ move to create a Help to Buy ISA that will include a government contribution of up to £3,000 for savers to help bolster their deposit. Additional support for increasing new housing supply is being provided though the creation of the first 20 housing zones outside London, with the potential to deliver 34,000 new homes.

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