|
  |
|
|
|
|
|
Introduction |
|
|
|
Financial highlights |
|
|
|
Routes to market |
|
|
|
Chairman’s statement |
|
|
|
Chief executive’s review |
|
|
|
Operating review |
|
|
|
Finance director’s review |
|
|
|
Directors |
|
|
For a printer friendly version of this Annual Report website plus PDFs of the rest of the document please visit the PDF download section . |
|
North & Western Europe
|
|
|
|
|
|||
| Building materials | 2000 | 1999 | % increase |
|
|||
| Turnover (£m) | 398.8 | 327.4 | 22 |
| Operating profit (£m) | 80.8 | 64.1 | 26 |
| Margin (%) | 20.3 | 19.6 | |
|
|||
The region benefited from the full year effect of our Scandinavian acquisition, buoyant market conditions in the UK and Ireland, and the delivery of cost efficiencies throughout the operations. In addition, manufacturing sites in the UK and Finland benefited from exports to the oversold North American plasterboard market, principally in the first half.
UK construction activity was modest but strong growth for group products was achieved in the commercial and renovation sectors and our position was improved in the residential sector, resulting in significant improvements in both turnover and operating profit. Plasterboard volumes increased by over 10% but higher value, higher specification fire protection and sound insulation products advanced at twice this rate.
The customer base for our products concentrated further during the year, and price improvements were tempered by the commercially more vigorous trading environment. This year saw the commissioning of a Casoprano ceiling tile line at our East Leake factory and the launch of the product range in the UK after its successful introduction in mainland Europe.
1998/99 had seen some disruption of UK desulphogypsum supply which had to be replaced by more expensive imports from Spain. Continuity of supply was resumed during the year under review and this, together with high activity levels and further efficiency improvements from our benchmarking and cost reduction programmes, boosted operating sales margins. The strong volume performance continues and prospects are encouraging.
In Ireland housing starts were up 10% and the remarkable growth story continued, with gypsum product volumes at record levels. Following union acceptance of the Labour Courts’ recommendations last year on the company’s development plan, a fundamental restructuring has been undertaken to ensure our business is able to service the local market growth, which appears set to continue despite fears of higher interest rates and labour shortages.
The first full year of our Scandinavian operation saw plasterboard volumes increase by almost 8% with construction growth driven by new housing demand, particularly in Sweden which had been flat for some time. Some recovery of demand was experienced in the Baltics and the St Petersburg region in Russia. A major restructuring of the business was undertaken during the year, including the closure of the former head office. Plant operating performances have been quickly brought into line with BPB standards, and sales margins (before redundancy and goodwill amortisation) were well ahead of the previous year. The Nordic economic outlook is generally positive. We expect competition to remain strong but intend to maintain leadership through BPB Gyproc’s expanding product offering.
Southern Europe
|
|
|
|
|
|||
| Building materials | 2000 | 1999 | % increase |
|
|||
| Turnover (£m) | 471.0 | 463.7 | 2 |
| Operating profit (£m) | 74.1 | 68.4 | 8 |
| Margin (%) | 15.7 | 14.8 | |
|
|||
The region experienced strong volume growth across all key markets, resulting in turnover and operating profit, before the effect of sterling translation, up 9% and 16% respectively.
In France the upturn in construction activity was led by new housing demand, with plasterboard volumes growing around 10%. Prices for plasterboard, after weakening in the middle of the year, increased at the end of the period and revenues were maintained by greater sales of higher value products and systems. Sales of Casoprano ceiling tiles continued to grow and tighter environmental regulations had a positive impact on demand for expanded polystyrene products. A major up-grade of the plasterboard plant at Chambery resulted in a near doubling of capacity. This, and significant cost reductions, contributed to the improved results in France.
The Iberian market enjoyed a year of strong construction growth leading to plaster sales volumes increasing by over 12%. Further progress was achieved in the migration from traditional low value plasters to higher value modern products. While this quiet revolution progressed, plasterboard continued to gain acceptance as the technical solution for commercial interior linings, with volumes increasing by over 30%. Selling price improvements were made for most products and this, together with the high activity levels and manufacturing efficiencies, resulted in a 25% increase in profitability.
Our Italian business also experienced a year of strong growth with profits almost doubling. Construction activity was buoyant, led by strong renovation demand and some upturn in commercial activity. While plaster volumes ran just ahead of overall construction growth, plasterboard and ceiling tile volumes advanced by almost 15%, demonstrating the growth characteristic of the product in markets where per capita consumption still has considerable headroom for development. The north west was supplied from new capacity available at Chambery but future growth in Italy will be met from a new plant to be built at Termoli to the east of Rome.
Growth in renovation demand was responsible for increased plasterboard sales in Holland and Belgium, where prices are now increasing.
In a standard-setting example of the UK construction industry’s focus on improved building methodologies, Andy Hyde, British Gypsum’s northern specification manager (right) led a team including Ingrid Haraldsson, systems manager at BPB’s Building Test Centre, and Shane Torrens (below), British Gypsum’s project support manager. Working with contractors, the team developed lightweight internal lining solutions for a new hospital in Calderdale, West Yorkshire.
Geographic analysis of turnover %
99/00 changes compared to prior year
| << previous page | [ 1 | 2 | 3 | 4 ] | continued >> |
[ back to top ]