Heywood Williams has reported losses of £71.8m for the financial year 2003, £61m of which relates to goodwill write-offs. The group has taken drastic action to reverse the slide: the DIY window and door businesses and the composite door operations have been closed, the UK head count has been reduced by 15%, and Coldseal, Creation, Cestrum and Coastal have been sold off.
Although share prices did not move much on the announcement, no final dividend has been recommended. On the positive side, Robert Barr is due to join as group chief exec in the summer and the company has announced a new system - the Elite 63 - and enhancements of the Elite 70 suite with the introduction of a tilt-turn.

Discontinued operations comprise: the Creation Group (US), Coldseal (UK) and Cestrum Building Products (UK) which were disposed of during July, August and December 2003 respectively; - the remaining UK fabrication operations Cestrum Conservatories and Coastal which were disposed of subsequent to the year end.

The 2003 operating exceptional item related to the implementation of the action plan announced on 31 October 2003, the purpose of which was to create the right platform for the UK business to build on its UK PVC windows, doors and conservatory market position and enter 2004 at a much improved run-rate of profitability. The plan focused on three areas:

  • discontinuation of a number of unprofitable and under-performing initiatives;
  • significant reduction in employment costs involving approximately 15% of the UK workforce; and
  • a write-down of assets in Plastic Systems following the previous restructuring and related supply chain issues.

The 2003 non-operating exceptional items related to the disposal of Creation, Coldseal and Cestrum Building Products, and includes goodwill of £23.6m previously written off to reserves.

Source

Glass Age