Horticultural company, William Sinclair Horticulture Limited, has been fined for two separate incidents that occurred at their sites in Lincoln and Ellesmere Port. The Ellesmere Port incident resulted in one of the firm’s workers sustaining serious injuries after he fell from a ladder that was not secured properly. Darren Taylor,
Screwfix has launched a new guide to help tradespeople understand how easy it can be to hire apprentices, in conjunction with Jamie Hepburn, the Scottish Minister for Employability and Training. Earlier in the week, Hepburn visited the Edinburgh Screwfix store to launch the guide, entitled ‘Your Guide to Hiring an
Parliament has started consulting with contractors on the £650 million refurbishment works to the UK parliamentary estate. The UK parliament has started an exercise of market engagement to talk about plans for procuring a main works contracting partner to support its northern estate programme. The scheme will consist of the
Horbury Safe (The Following is a Promoted Article) Health and safety has never been so pivotal to operational approach. In the construction industry today we are increasingly seeing businesses tailor their strategy to health and safety best practice. That’s because it not only ticks the boxes of legislation but
Savills development team has picked up the award for Residential Property Consultancy of the Year at the Midlands Residential Property Awards. The real estate services provider scooped the prize at the first ever Midlands Residential Property Awards ceremony last week at Birmingham’s Metropole Hotel. The gala dinner celebrated the achievements
A Mature Approach to Health and Safety (The Following is a Promoted Article) Good health and safety practice starts at the very beginning. Long before a project hits the construction site, risks must be limited and potential hazards documented and flagged. Hoare Lea, which enjoys an international presence providing expert
An Aberdeen-based cargo handling firm has been fined after one of its workers sustained a serious injury. The Aberdeen Sheriff Court heard that the cargo handling group North East Stevedoring Company Limited (NESC) was carrying out work at Clipper Quay, Aberdeen Harbour. It was revealed that on the morning of
The Oil Firing Technical Association (OFTEC) has responded to requests throughout the industry by extending what it offers with the launch of a new course. The new scheme will cover the commissioning and servicing of bigger multi-stage burners, as fitted in several medium and light commercial appliances. The course is
G A Smith – Reputable in Construction (The Following is a Promoted Article) Undoubtedly, one of the greatest – if not the greatest – challenges faced by plant hire firms is managing health and safety. Owing to its power and size, plant equipment is intrinsically dangerous and thus proper risk
Builders’ merchant group Travis Perkins saw its profits nosedive in 2016 after reorganisation of its plumbing & heating operations. Above: PTS – a Travis Perkins brand Travis Perkins’ 2016 revenue was up 4.6% for the year to 31st December 2016, reaching £6,217m. Pre-tax profit was down 67% to £73m (2015:
Horticultural company, William Sinclair Horticulture Limited, has been fined for two separate incidents that occurred at their sites in Lincoln and Ellesmere Port. The Ellesmere Port incident resulted in one of the firm’s workers sustaining serious injuries after he fell from a ladder that was not secured properly. Darren Taylor, aged 40, was working on a deep clean of conveyor belts on January 8, 2015, and used a ladder to remove guards for access but on his ascent the ladder moved and caused him to fall to the ground from a height of 1.75 metres. The investigation by the Health and Safety Executive (HSE) found that the company did not have a safe system of work or risk assessment in place for the work to be carried out, nor for the proper use of ladders. On the day of the incident, none of the other workers who were involved in cleaning the conveyor belts had received adequate training on how to use ladders safely. In February 2014, Bolton Magistrates’ Court heard that William Sinclair Horticulture Limited had previously received two formal warnings from the HSE that were was an issue on the site about work being carried out from an unsafe height, though the firm did not take the action that was required. The court was also told that William Sinclair Horticulture Limited did not listen to the HSE Inspector’s advice by not giving the necessary guarding on machinery at their site in Lincoln. After a proactive visit in January last year by the Inspector, the firm was served with an Improvement Notice to improve the guarding of the conveyors that fed products into the machinery. A further visit in March last year found that another Improvement Notice has been served relating to guarding on the sand line, while a third visit in June last year revealed that the company still had major issues with guarding of machinery, despite formal enforcement action taken previously.
Screwfix has launched a new guide to help tradespeople understand how easy it can be to hire apprentices, in conjunction with Jamie Hepburn, the Scottish Minister for Employability and Training. Earlier in the week, Hepburn visited the Edinburgh Screwfix store to launch the guide, entitled ‘Your Guide to Hiring an Apprentice’, which is a free booklet and available online as well as in Screwfix stores throughout Scotland. The national skills body, Skills Development Scotland, developed the booklet, and the group also contributed financially towards the cost of training apprentices. The booklet was released by Screwfix in conjunction with the Minister in response to a study that showed tradespeople want more skilled workers through encouraging apprenticeship schemes, along with guidance on how to take apprentices on. The free, easy to use information pack is intended to address a number of the myths associated with apprenticeships and given its small size, the guide will feature bite sized chunks of what employers need to know, from the benefits of apprenticeship schemes, to where they should go to find them. The guide was released by Screwfix in response to trade customer feedback, with a number of carpenters, builders, electricians, plumbers and other tradespeople who took part in the Screwfix poll having little or no experience of taking on apprentices, with just 14% having employed one in the last year. Screwfix Operations Director, Graham Bell, said that as a key trade supplier, the company is always looking at new ways to support tradespeople in growing their businesses, from making sure they get the right products at the right time, to addressing the key issues of the industry. He added: “We understand how vital apprentices are as the future lifeblood of the trade, but it’s clear from what our customers are telling us that more needs to be done to simplify the process of hiring one.”
Parliament has started consulting with contractors on the £650 million refurbishment works to the UK parliamentary estate. The UK parliament has started an exercise of market engagement to talk about plans for procuring a main works contracting partner to support its northern estate programme. The scheme will consist of the essential refurbishment and repair of several historic office buildings on the parliamentary estate in the area of the Palace of Westminster. Included in the work is a full refurbishment of the Palace of Westminster parliament building itself, which is reported to cost at least £1 billion, although it could include some early elements of the Palace of Westminster Restoration & Renewal Programme. The northern estate programme works will be made up of the renewal of electrical and mechanical services, along with the restoration of the fabric of the listed buildings. It is expected that the work will cost in the region of £150 million to £160 million and will be complete in around three or four years. The buildings that will be refurbished are: Norman Shaw North, Norman Shaw South, 1 Derby Gate, Canon Row residences, 1 Parliament Street and other decant buildings as required and potentially certain early elements of the Palace of Westminster Restoration and Renewal Programme. Parliament is seeking the views of contractors in order to assess the market interest and capability to deliver and manage the programme, while it is also a chance to talk about the programme more generally and inform Parliament’s approach to procurement. Parliament’s Strategic Estates department is seeking advice on: contract shape and size, procurement strategy and any significant risks that could impact on the delivery of the works and the success of the procurement. Any contractors who are interested in the works have been invited to fill out a questionnaire and return it by August 3, 2016.
Horbury Safe (The Following is a Promoted Article) Health and safety has never been so pivotal to operational approach. In the construction industry today we are increasingly seeing businesses tailor their strategy to health and safety best practice. That’s because it not only ticks the boxes of legislation but facilitates the development of a working environment where staff want to be; where its expertise, as well as its wellbeing, is valued. Importantly, more and more companies in the industry are witnessing the commercial potential of these vital foundations. Horbury Joinery, which is part of the multi-disciplined national service provider Horbury Group, is one such example. Indeed, it has taken its reputation for the highest standards of craftsmanship and applied this to the safety and wellbeing of its staff. The Group has worked tirelessly to improve policies and procedures, analysing where incidents occurred, why they occurred and what could be changed to reduce the risk. Taking a holistic approach, the Group established Environ Safety Management Ltd, a dedicated company specialising in training and consultancy. This has brought huge benefits to the Group as a whole, with key members from each of the company’s divisions applying their knowledge in order to influence policy, find areas of improvement and promote best practice. This has helped, for example, to alleviate challenges deriving from having different trades on site at the same time. Policy dictates basic principles of health and safety but depending on the nature of the project, the lead trade will see a dedicated contracts manager, skilled in the relevant trade, write the method statement and risk assessment. This ensures they are fit for purpose. When divisions work collaboratively, contracts managers from each trade will come together to develop a method statement that encompasses the exacting standards demanded by the Group. The health and safety committee meets regularly to identify strengths as well as areas of weakness to inform policy and drive standards. For instance, through analysis of accident statistics within the joinery division, data showed that the majority of incidents involved the trapped or cut fingers of agency workers during their first thirty days of employment. Horbury Group aimed to reduce this risk at its source. It worked with its provider of agency labour to ensure the right sorts of people – with relevant experience or qualifications – were being put forward for work with Horbury. For any vulnerable people, the company would provide extended training and support. Within three months of this initiative going live, accident rates to fingers were reduced significantly. Contracts Director David Bastow, who also heads Horbury’s health and safety company Environ, says it’s the moral duty of a construction business to take care of its workforce. “We’ve turned health and safety from a blocker into an aid. What we’ve learned over the years is that health and safety is very behavioural and we’ve found that if you can instil high standards at the top level and filter it down to the sites, operatives understand that is the standard you must work towards. We call it Horbury Safe – and that not only meets legislation but goes above it, to develop levels of competency that ensures the working environment is as safe as possible. “Each quarter we look at accidents and near-misses and analyse them – are there any trends we can identify and target for improvement? Of course, it’s easy to target the RIDDOR’s because they are by definition far more significant but by analysing minor incidents we can make dramatic improvements to our overall health and safety procedure.” One of the changes the Group made was to only accept staff if their CSCS cards were gained for the trade in which they planned to work. “Some companies are happy for staff to have any CSCS card to get on site. We see that as wrong,” adds David. Horbury’s approach is complemented by an incentivised system. “Each site gets audited by our health and safety company. The site’s competency is scored and those points go on a leaderboard. Human nature means you don’t want to be at the bottom. That’s seen our teams really buy into the initiative; you can see them looking after each other and that’s very pleasing.” Another recent initiative has been the launch of the “Workforce Forum” which invites site-based operatives from each division to sit down with the directors to discuss day to day challenges. Honesty is encouraged and where Horbury can improve it will. Recently David was able to reveal at the company’s bi-annual seminar that accident severity rates were down to 0.06, well below the company’s target of 0.25. Accreditation to certified bodies such as CHAS identifies the competencies evidenced by the Group. David acknowledges that since the company embraced health and safety through its dedicated company, it has worked more closely with CHAS to enhance its policies. “Before we developed the health and safety committee I’ll admit we used to wait for the email reminder to say the CHAS audit is coming up. We’d quickly rally around to check if our policies were up to date. Now it’s an ongoing appraisal of our policies and procedures.” And the relationship between CHAS and the Group is now far more developed than simply passing the annual audit. “Organisations like CHAS are now more supportive and we can tap into that support and develop our policies further. Certain customers won’t let us tender unless we have a CHAS accreditation against us. But it’s not just about getting on tenders, it’s because we truly believe it benefits us as a business. Additionally, when we present to prospective clients and they ask about health and safety, which is always on the agenda, we can highlight our accreditations.” Looking ahead, the company is eager to make its initiative “Horbury Safe” a recognised symbol of excellence. “If you’ve worked with us as a client or you’ve worked with us as a subcontractor, you’ll know what health and safety means because of the value and
Savills development team has picked up the award for Residential Property Consultancy of the Year at the Midlands Residential Property Awards. The real estate services provider scooped the prize at the first ever Midlands Residential Property Awards ceremony last week at Birmingham’s Metropole Hotel. The gala dinner celebrated the achievements of the residential sector in the Midlands and was hosted by former politician Gyles Brandreth in front of a packed house. The award for Residential Property Consultancy of the year went to the Savills Midlands development team, coming out on top above rival firms Bilfinger GVA and Knight Frank. The firm’s superb joint ventures particularly impressed the judges, along with its expertise in both urban and rural projects. Savills Nottingham Development Director, Ben Glover, collected the award on behalf of the Midlands team and commented: “We are delighted to have won Residential Property Consultancy of the Year, demonstrating our strength and unity as a team. For Savills, it’s not just about development, but about creating aspirational places where people want to live and gaining recognition for our efforts makes it all even more worthwhile.” Head of the Midlands development team, Barry Allen, said that the award was a great testament to the dedication and hard work of their Midlands team which covers the breadth of the West and East Midlands from their offices in Birmingham and Nottingham. “I would like to take this opportunity to congratulate them all on this success,” he added. Meanwhile, last month Savills strengthened its UK management team with the acquisition of Chainbow Ltd, a specialist residential management business. The company’s Chairman and Chief Executive Officer, Roger Southam, established Chainbow in 1989 and now employs 28 staff members, all of whom will now move to Savills with immediate effect. Chainbow specialises in the build to rent, private rented and residential block management sectors, and provides consultancy services and property management services to a number of clients including Westrock, Englander Group and Taylor Wimpey.
A Mature Approach to Health and Safety (The Following is a Promoted Article) Good health and safety practice starts at the very beginning. Long before a project hits the construction site, risks must be limited and potential hazards documented and flagged. Hoare Lea, which enjoys an international presence providing expert mechanical, electrical and public health engineering design, acknowledges that its role prior to a project breaking ground is vital in the management of risk. That’s why a significant proportion of its work is to design-out risk in accordance with CDM regulations to aid the health, safety and welfare of staff when construction begins. Hoare Lea’s successful national and international growth is testament to its ability to provide solutions that not only meet the exacting standards of its clients’ needs but enables projects to be delivered safely. It’s part of the firm’s rewarding combination of knowledge, experience and attention to detail that continues to distinguish it amongst its peers. This is highlighted by a long-established holistic approach to quality, health, safety and environmental management which remains compliant with ISO 9001, ISO 14001 and BS OHSAS 14001. It’s evidence of a very mature system, says Head of Compliance Gwyn Davies, who oversees the firm’s ongoing management of health and safety internally. While Hoare Lea ensures its staff have a safe working environment in which to operate within its offices, much of the business’s risks derive from its work outside of these carefully controlled workspaces. This includes travel between offices and client bases and, of course, site visits where staff may be located during active construction works. It is this aspect of Hoare Lea’s work that demands the most attention. “We have to focus on our staff when they go to site because the environment in which they inhabit outside our offices is out of our control. We support this focus through our Site Visit Risk Assessment, which takes into account site-specific hazards in order to mitigate risk,” explains Gwyn. “It’s about making sure we discharge our obligations under the Health and Safety at Work Act in order to provide our staff with a safe environment in which to work and that includes work in our office, travel between offices and out on site.” While the firm doesn’t provide a supervisory role onsite, engineers may be tasked to monitor or inspect an installation to check the development is being carried out in accordance with the design and specification produced by Hoare Lea. At these times, it is critical to have completed a site-specific risk assessment. The value placed upon health and safety within the organisation is obvious. Certification to BS OHSAS 18001 is a clear status of intent as well as an indication of the compliance levels achieved by the business. Accreditation to CHAS, a prerequisite when tendering for many projects these days, is another example. Hoare Lea also recognises health and safety at the very top of its management structure with representation at executive level, while a culture of communication, led by regional representation provides a voice for the grassroots level. “We will soon have 12 offices throughout the UK and each has a health and safety representative,” explains Gwyn. “We meet every quarter to review the effectiveness of our policies, share ideas, air concerns and ultimately seek ways to enhance our management system. These meetings also give us a chance to prepare for external audits as part of our commitment to BS OHSAS 18001, for example, and apply any changes where needed.” Regular review is key to remaining proactive and supporting an approach bred on continuous improvement. This is complemented by ongoing training. “Just yesterday I was at our London office delivering awareness training on the CDM regulations,” adds Gwyn. A Chartered Engineer, he himself has now acquired the NEBOSH National General Certificate in Occupational Health and Safety. Meanwhile, the regional representatives overseeing health and safety all complete a RoSPA two-day training course. The challenge of compliance has been compounded by the company’s increasing work overseas. Hoare Lea now boasts offices in the Middle East and India with its presence continuing to increase on the international stage. To mitigate risk, the business’s Integrated Management Group has worked collaboratively with Human Resources to develop systems that safeguard the welfare of staff when working abroad. There are also legislative challenges in remaining compliant in each of the jurisdictions in which Hoare Lea operates. It is more difficult to navigate the intricacies of the legal systems employed in Abu Dhabi and Qatar, where the firm has bases, as compared to the common law system operated in India (where the business is based in Pune), which has more in common with our own jurisdiction here in the UK. Thankfully, says Gwyn, “our robust system means that if we apply those principles internationally we will remain compliant with local laws.” Ultimately, health and safety is embedded throughout Hoare Lea – from senior executive level to grassroots. Training is ongoing and co-ordinated through the firm’s equally mature Professional Development and Human Resource Groups. The business has also ensured workforce welfare is ingrained within its professional development scheme where young engineers are nurtured towards Chartered status. With a sizeable budget allocated to continuous improvement, it is obvious that no short cuts will ever be taken. After all, Hoare Lea has understood for a significant amount of time the value of health and safety to a successful, sustainable and profitable business. http://www.hoarelea.com/ Tel: 020 3668 7100 (London)
An Aberdeen-based cargo handling firm has been fined after one of its workers sustained a serious injury. The Aberdeen Sheriff Court heard that the cargo handling group North East Stevedoring Company Limited (NESC) was carrying out work at Clipper Quay, Aberdeen Harbour. It was revealed that on the morning of June 13, 2013, that a forklift truck operated by an NESC employee was transporting stows (containers) which held loose pipes from Clipper Quay to the quayside within reach of a crane. One of the Euroline Shipping Company Limited’s shipping agents who oversaw loading operations, Christopher Smith, was on his way to the vessel which the pipes were to be loaded onto when the cargo being transported struck him on the lower back. As a result of the accident, he suffered fractures of several vertebrae, as well as a left elbow fracture and has not gone back to work since the incident. The Health and Safety Executive’s (HSE) investigation revealed that NESC had neglected to make sure that the required separation between pedestrians and vehicles was in place. They failed to provide pedestrian routes and as a result they were not excluded from the work area. The report found no evidence of a safe working system in place at Clipper Quay. The court heard how NESC must take ultimate responsibility for the safety of its workers and the arrangements of their work site. NESC, based at the Streamline Terminal in Aberdeen’s Blaikies Quay, was fined £12,000 after it pleaded guilty to a breach of Section 17 (1) of the Workplace (Health, Safety and Welfare) Regulations 1992. Following the hearing, Sarah Liversidge, HSE inspector, commented: “The law states duty holders must ensure the workplace is organised in such a way that pedestrians and vehicles can circulate in a safe manner. “NESC failed in that undertaking, there was insufficient separation between vehicles and pedestrians within the loading area at the Quay that resulted in Mr Smith sustaining serious injury that has prevented him from returning to work.”
The Oil Firing Technical Association (OFTEC) has responded to requests throughout the industry by extending what it offers with the launch of a new course. The new scheme will cover the commissioning and servicing of bigger multi-stage burners, as fitted in several medium and light commercial appliances. The course is called ‘OFT10-201 Servicing & Commissioning of Multi-Stage Burners’ and offers a variety of both practical and theory based assessments for two and three stage pressure jet burners connected to water heating and space appliances. Along with commissioning and servicing, the course will also cover the topics of appliance installation, knowledge of oil storage and supply, OFTEC procedures, safe electrical isolation, regional requirements, fire valve installation and health and safety. David Knipe, Training Manager at OFTEC, said that they have already received extremely positive feedback from technicians who have attended the course. Knipe commented: “Those new to commercial appliances have said it’s equipped them to confidently tackle the servicing and commissioning of light commercial appliances, whilst experienced commercial technicians have found the details on commercial oil storage, risk assessment and procedures very helpful.” OFTEC says that they are able to offer more support to their technicians’ business growth by covering both domestic and commercial applications through their assessment offering. The group says it will continue to listen to and respond to the ever-changing industry needs as they strive to provide the top level in advice and progressive services in the future. Currently, there are nine centres throughout the UK and Ireland which offer the OFT10-201 course, which is set to be introduced in more centres across the country over the next few months. Last month, OFTEC’s Director General, Jeremy Hawksley, said that the industry has enjoyed a period of sustainable growth thanks to falling heating costs over the last three years and as a result sales in oil condensing boilers have reached their highest point in almost 10 years.
G A Smith – Reputable in Construction (The Following is a Promoted Article) Undoubtedly, one of the greatest – if not the greatest – challenges faced by plant hire firms is managing health and safety. Owing to its power and size, plant equipment is intrinsically dangerous and thus proper risk management is a fundamental part of haulage business’ operations. Beginning with just one wagon in 1987, G A Smith has since grown into specialist plant hire firm of multiple vehicles and multiple areas of expertise. Operating out of three depots in Birtley, Cramlington and Felton, and with four core areas of business – plant hire, bulk haulage, bulk handling and earthworks – the firm functions as a one-stop-shop in loading, conveyance and handling. Through diversification, the firm has established a leading reputation with its construction industry clients and is favoured for its technically-competent and professional services. Although the weight G A Smith places on health and safety is then perhaps unsurprising, the firm’s success in managing risk is somewhat remarkable. Training has been key for the firm; by providing operatives with the most up-to-date advice, knowledge and skills, risk of injury by human error or misdemeanour can be mitigated. With several SMSTS-trained site managers, a number of SSSTS-trained site supervisors and all operatives having undergone CPCS training or an equivalent, G A Smith leaves nothing down to chance and has built up a level of competence that, for the most part, prevents accidents from happening altogether. More than simply providing opportunities for training however, G A Smith has taken the decision to carry out some specialist training in-house rather than sourcing courses from an external supplier. Claire Trusty, Health and Safety Officer at G A Smith, says the benefits of internal training are manifold: “Taking a hands-on approach to training has enabled us to provide operatives with exactly the qualifications and skills they needs for each specific job. What’s more, we’re also able manage operatives’ practice more attentively and make sure not only that they have the right knowledge and the right skills to perform but, equally, that they’re effecting what they’ve learned in training on a day-to-day basis.” Conducting training in-house is also well-suited to the often unpredictable schedules and working hours of G A Smith’s operatives, and thus prevents the company from having to take time away from either site works or the customer. Training provided includes: manual handling, basic working at height and fire awareness. In addition, all operatives have recently benefited from a Self-Study Environmental Awareness with a view to easing G A Smith’s transition to a ISO 14001-accredited firm. Indeed, following recent audits, the company is now accredited with ISO 14001, ISO 18001 and ISO 9001, the successful achievement of which, Trusty highlights, will prove invaluable during tendering in the future and, more generally, reinstates G A Smith’s commitment to quality and corporate responsibility. ISO accreditation is just another seal of approval for the company which also possesses a number of highly-regarded industry accolades, including SafeContractor, Constructionline and CHAS accreditation. In respect of just what CHAS membership provides the business, Trusty echoes her sentiment on ISO accreditation as well as stressing that the principles of CHAS are, in many ways, commonsense. “When we first started to invest in health and safety, changing the business in line with the requirements CHAS, it was actually much more simple and much more intuitive than it first seemed. Ultimately, CHAS mandates that businesses recognise their responsibility to provide a safe working environment for operatives and mitigate risk to the public. When you look at it like that, there’s very little to dispute.” In terms of how those ambitions are actualised on site, G A Smith issues all operatives with an up-to-date health and safety policy and PPE during induction, reviewing potential risks and hazards on a site-by-site basis and making amends as necessary. Risk assessments, method statements and COSHH assessments are all completed internally and, likewise, reviewed regularly so as to identify any changes or emerging matters of address. With profound emphasis on health and safety, G A Smith continues to excel in the bulk haulage and handling industry, proving that the – whilst the industry may be characterised by risk – it need not be defined by accident or injury. And with express commitment to maintaining such high standards evident in the company’s recent successful audit for ISO accreditation, G A Smith can only grow in prominence.
Builders’ merchant group Travis Perkins saw its profits nosedive in 2016 after reorganisation of its plumbing & heating operations. Above: PTS – a Travis Perkins brand Travis Perkins’ 2016 revenue was up 4.6% for the year to 31st December 2016, reaching £6,217m. Pre-tax profit was down 67% to £73m (2015: £224m), primarily due to an impairment charge of £235m recognised against goodwill and other intangible and tangible assets in City Plumbing, PTS, F&P, bathrooms.com, Solfex and Tile Giant. The plumbing & heating market (which contributed £1,359m to Travis Perkins revenues in 2016) has been flat over recent years, Travis Perkins said, with declines in the social housing sector offset by growth in private new build and more modest growth in repair & maintenance work. “Both the contract and local installer markets are increasingly competitive, with the traditional plumbing merchant channels under pressure from the significant expansion of online, fixed price multichannel operators and strong local and regional independents,” Travis Perkins said. “As a result of these market changes, conditions may worsen in 2017.” The company’s plumbing & heating division has already been reorganised in the past couple of years and further restructuring is ahead. The social housing boiler and heating replacement market has remained difficult with traditional merchants competing aggressively on price for business impacting PTS. The PTS management team developed a lower cost branch operating model in the year and trialled the model in a small number of locations. Chief executive John Carter said: “2016 was another solid year for the Group, with continued strong performances from the Consumer, Contracts and General Merchanting divisions, which together contributed 90% of Group adjusted operating profit. These businesses continued to benefit from the investments made in the branch network and customer propositions over the last three years, which provides a strong base for future growth. “It was a much more difficult year for the Plumbing & Heating division driven by structural challenges for traditional merchant businesses in this segment. Whilst the network restructuring work carried out in 2014 and 2015 created a more focused branch network, further work is required and over the next six months we will be exploring all routes to enhance returns. There are improvements we can make to the ranges we offer to our customers, our availability, our online presence and our service proposition. “The macro-economic outlook of the UK is mixed. The sharp decline in the value of sterling since June 2016 has created cost pressures on imported goods and materials, and the expectations for secondary housing market transactions and growth in the RMI market have weakened. We have a proven track record of managing our cost base and took decisive action in October 2016, announcing a restructuring programme to close underperforming branches and improve supply chain efficiency. We enter 2017 with a strong balance sheet and will continue to invest selectively in our leading businesses to further strengthen our competitive advantages which will enable us to continue to outperform and drive shareholder value over the medium term.” This article was published on 2 Mar 2017 (last updated on 2 Mar 2017). Source link
