24 minute read
Glass News Interview: DGCOS
DGCOS PROVIDES INVALUABLE SUPPORT TO BOTH CONSUMERS AND INSTALLERS
Faisal Hussain tells Glass News’ Editor, Chris Champion, about the benefits the Double Glazing and Conservatory Ombudsman Scheme (DGCOS) offers both consumers and installers.
The Double Glazing and Conservatory Ombudsman Scheme (DGCOS) is an organisation dedicated to protecting consumers, raising industry standards and supporting glazing installers. It’s an ethical scheme and Faisal Hussain returns to the organisation as its Chief Executive, determined to drive the organisation forward. It’s interesting to hear how Faisal sets about reinvigorating DGCOS and building a team that share his passion in creating a new proposition for window and door installers.
DGCOS is not new: it has been around and supporting the industry and consumers for many years and there are many installers who both swear by the benefits it provides them and relish the fact that the consumer, their customer, knows they can trust any company sporting the DGCOS brand. There is little doubt that hundreds of thousands of consumers have benefitted by the coverage provided by the scheme, and also fenestration businesses that have received a very valuable and critical point of difference that has set them apart from competitors. It is interesting and significant that George Clarke, the architect, TV presenter and home improvement champion has agreed to be an ambassador for DGCOS. Cynics amongst us may say that he is being paid to do it but with his profile, both in the trade and amongst consumers, he wouldn’t agree to taking on this role lightly. After all he has a high reputation to uphold. With such a name behind the organisation you can understand how this may help installers during the sales process. However, that is not all. The seemingly endless list of benefits that installers enjoy can take a new company through every stage of setting up to being a successful installation business. Is DGCOS going to do all the work for a business? Of course not. In fact, there is a very vigorous due diligence process that takes place before an installer is accepted into the scheme and Faisal explains the importance of this. You may think that the help would consist of just marketing collateral and some insurance – think again. There is much help in registering a business, introduction to manufacturers and advising on all kinds of software solutions that the business needs, even model terms and conditions are available to ensure compliance with the Consumer Rights Act 2015. Moving into the marketing side, there’s website and social media advice as well as an opportunity for leads from DGCOS’ own website. Sales training is available as is advice on consumer government schemes and grants. When it comes to installing there is technical and product support, introduction to sub-contractors to help cope with consumer demand and DGCOS pay for the competent person scheme notifications saving installers approximately £1.65 per notification.. The customer service and satisfaction side is very important and advice and support is there to handle complaints, feedback from customers is available through DGCOS customer satisfaction surveys and there is also access to a Primary Authority, West Yorkshire Trading Standards, for legally backed advice.
The section on an annual review may sound daunting but, in fact, it provides an annual health check on keeping up with insurances, legislation and the waste management licence. It looks over the documentation an installer provides, and can advise on budgeting and cashflow and even look at grants and benefits that may be available to the business.
Faisal Hussain is passionate about both his job and the service DGCOS provides to both installers and consumers. Membership of the scheme is reasonably priced for the many benefits on offer and longstanding members of DGCOS have obviously found it very worthwhile.
THE WINNING FORMULA
The Selecta success story continues to go from strengthto-strength with record numbers across all areas of the business. Sales Director, Andy Green, talks about the ‘winning formula’ at Selecta and the huge opportunities of being part of the UK’s only independent, family owned and award winning PVCu systems company.
As newly crowned winners of PVC Company 2021 at the National Fenestration Awards, we are extremely proud to be recognised by our industry peers for our achievements, especially after what has been a demanding 18 months for everyone in the industry. It’s our third win at the muchcoveted awards ceremony, after picking up Systems Company in 2017 and PVC Company in 2018. This is even more gratifying when you consider it was a year fraught by supply chain issues and rising costs with 2021 certainly being a challenging, yet prosperous year for many involved in our industry. With consumer demand at levels not seen for many years, it has pushed many of a business to their limits and beyond. Indeed, Selecta have been caught up in the torment of supply chain issues. However, I believe we have come out of this far more
Andy Green
quickly and respectfully than the majority in the industry, in-turn making us stronger, more focused and determined to continue to provide not just a quality range of products, but also a first-class service and personal support package to our customers. Quality, reliability and trustworthiness have and continue to be of paramount importance to ourselves, just as they are to our customers, when we talk about the products, services and support of which we provide. It’s definitely a winning formula and one we have honed and personally developed with our customers over a number of years. It is often said we go above and beyond on what other systems companies do, but it is what we
do and again that is down to the flexibility, knowledge and longstanding experience within the business.
During our record-breaking year, we have grasped the opportunity with both hands to bring forward our expansion and growth plans with new silo’s, extrusion machines, lamination machine and delivery vehicles, coupled with a staff recruitment drive. These investments demonstrate our ongoing commitment to our customers and employees, or Selecta family as they are fondly referred to. These kind of expansion and growth plans are a big statement to the industry as a whole and clearly shows our intent to support and grow with our customers. support package. Our flexible and engaging approach to providing a personalised marketing support package has been greeted with great positivity, with more customers than ever taking advantage of our free graphic design service for re-branding, logos, flyers and vehicle graphics. To support this even further, we have some very exciting plans well underway to stay ‘connected’ with our customers in 2022 and we are confident of taking our service and support package to a completely new level. For us, winning PVC Company 2021 at the National Fenestration Awards has certainly put the icing on the cake, as we look back on a record year at Selecta. We’re certainly looking forward to a positive 2022, where we will be celebrating 40 years of helping fabricators build and grow their businesses!
STERNFENSTER. NOT JUST A PVCU AND ALUMINIUM FABRICATOR BUT A BONA FIDE MANUFACTURER
Joining an Editor’s Day at fabricator Sternfenster, Glass News’ Editor, Chris Champion, got an insight into how the company is following through on their stated mission to develop and maintain a highly motivated and committed team who share the Starglaze/ Sternfenster family values, to enhance their customers by delivering continual improvements to become their supplier of choice. Achievable aims?
It may seem strange to call a fabrication business with 240 employees a family business but Sternfenster, based in Lincoln, undoubtedly has that family feeling. Perhaps the fact that they have so many employees who have been with the company for 20, 30 and even 40 years is evidence of this, but I think it goes much deeper. The company’s commitment to Investors in People is indicative of the importance that the current generation’s owner, Mike Parczuk, puts on both the scheme and the people within the Sternfenster ‘family’. I mention family in this context, and the current generation, as Mike has simply followed on as current custodian of Sternfenster and will, in time no doubt, pass it on again. I suspect that may be a long time in coming as Mike shows no signs of slowing down and will be at the helm in the foreseeable future. Investors in People is close to his heart and he has set a goal of achieving Gold status in this scheme by October 2022 and, if he achieves this, it is almost unheard of in the timescale since adopting the scheme he only achieved the silver standard earlier this year! The involvement of everyone in the company is both valued and recognised: anyone can have an idea that may develop a product or improve manufacture, or simply make the environment that much more pleasant to work in or, importantly, safer. And they are rewarded for their input. Signs of staff input abound. Most memorable for me, following my guided tour of the manufacturing facility, is the simple PVCu scuff plates that attach to the bottom of an aluminium window or door frame. Moving heavy frames, and particularly aluminium that can easily mark, around from station to station is made easier by being able to drag the component with no risk of damage. Ingenious, and effective. A Perkbox, whereby colleagues can nominate others for their performance or help and they can win discounts or
Mike Parczuk
“I use SFPlus on a daily basis. The capacity feed is extremely useful, especially at the moment when demand is so strong. I can tell from the minute I place an order if the factory is running at high capacity and if the lead time might be affected, and the news feed keeps me up to date if there are any other issues, such as delays on material supply.”
James Trotter, MD, Select Window Systems
prizes of various sorts, and a brand new Employee Assistance Programme offering such things as free confidential counselling helpline, 24-hour GP services, financial and legal assistance are in full operation, as is a ‘buddy’ system to help starters to the company. The encouragement to help each other fosters real teamwork and, I daresay, negates that killer for small and medium sized businesses, the dreaded office politics. I don’t believe anyone within Sternfenster would throw a colleague under the proverbial bus! Another impressive introduction is how the whole company has taken on board the issues of mental health and general wellbeing. Being of a certain age, weaned on prep school cold baths, board dusters being thrown at your head and corporal punishment inflicted on 7 year olds at boarding school, one is inclined to just say ‘get a grip’ when all this reference to the effects of mental health is mentioned. Well, I’ve listened to Mike and his reasoning on the whole subject and have been converted to taking the subject seriously. Introducing Mental Health Champions and initiatives such as the Starglaze Wellbeing Week is not just paying lip service to the issues but facing them head on and doing something constructive about it. This manifests itself in a specialist Employees Web Site and looking after staff, monetarily. No promising ‘triple locks’ then backsliding like our government, or waiting for inflation to hit a specific number before offering pay increases….how many companies have handed out 4 pay rises across the board during 2021? Rewarding the whole ‘family’ and sharing the success of Sternfenster and the retail arm, Starglaze, bonds the workforce together. The whole company knows what the aims are. They know the turnover target: they know that a 10% retained profit is the ongoing aim. Is it all a pipe dream and a way to manipulate people to work harder? Certainly not. The proof it works is in the figures. A 26.9% increase in business since 2019, 78 new accounts during 2020 and already 79 new accounts in 2021 with a projected turnover of £23.6m and a projected EBITDA of 13.4%. These results don’t simply come from staff motivation but also serious investment for both the present and the future. A six figure investment in aluminium production, a new PVC cutting and machining centre, and £500K on new delivery trucks. However, investment isn’t restricted to the manufacturing facility and it has manifested itself in a whole range of assets to assist installer customers and make buying from Sternfenster, and selling on to their own customers, easier and more profitable. It is all about customer service and although Sternfenster has supported their customers through three price increases, they have invested in the marketing that has generated 700 leads per month across all platforms and, in Q2 alone, generated 3,556 consumer leads for their Approved Installers. Recognising the importance of keeping the customer appraised of production, especially during times of raw material shortage, the company has invested and brought online a live production feed that operates across the PVCu and Aluminium lines. Customers can check the status of orders, contracts and deliveries, see a live newsfeed and download training and marketing material. This is all part of the Sternfenster Plus scheme that signifies a stepchange in customer service. Of their 583 customers, some 244 are already using the Sternfenster Plus scheme with an average of 115 daily users. This has all translated into an increase in page views from just over 46K to over 94K pageviews between January and May of 2021. Technology is playing a big part in providing this new standard in customer service and requires significant 3D CGI work to animate the entire range of products which will then be used in a brand new Proposal Builder Quotation System. Although this technology is the future the support Sternfenster gave to their customers after lockdown shows very real support for them during difficult times. They have sent out 131 Stenfenster Plus news stories and 58,656 emails to customers since the end of lockdown; planned, built and deployed the real time capacity planning system and offered the EasyAdmin CRM, free-ofcharge, during Covid so customers could quote and order product remotely. Visiting the Lincoln premises is an experience. Neat, tidy and efficient and, seemingly, self sufficient. PVCu and Aluminium manufacture of windows, doors, lift ‘n’ slide and bifolds including their own powder coating line for aluminium and their own Forel line manufacturing IGUs. What strikes you is that this manufacturing and the flow efficiency could be for any products and not just fenestration and that’s exactly what Mike has been aiming for – a manufacturing unit that could be manufacturing, well, anything. Luckily for Sternfenster’s customers he’s quite happy to stick with PVCu and aluminium fenestration products at the moment!
“I would say that we definitely feel like part of the Sternfenster ‘family’! From the customer service and sales team to Mike [Parczuk, Managing Director], they will always do absolutely everything they can for us. That level of support is invaluable, and it’s enhanced by the quality of the digital systems they have developed, such as Sternfenster Plus. I like to be organised, so I use Sternfenster Plus on a daily basis.”
Georgie Andrews, TWR
2022: OPPORTUNITY AHEAD
With a year of greater economic certainty ahead, Gary Hyem – Director at FRP Corporate Finance – explains how business owners can maximise the opportunities presented by market consolidation.
Ushered in by a wave of optimism and the now long forgotten ‘Boris bounce’, the past two years have been extremely challenging for businesses, the glazing sector included, with many having to reduce or cease production while managing supply uncertainty and rising material costs. A new year brings renewed optimism though – and not without reason. The UK’s economic outlook for 2022 and beyond paints a positive picture, with underlying market fundamentals for the glazing industry providing good reason to be confident. More specifically, there are three key growth drivers underpinning the positive outlook for the glazing sector. The commercial sector, for one, is seeing positive growth thanks to sustained infrastructure investment – driven in part by the public sector, with schools and hospitals a priority. The race to net zero is also picking up pace, meaning an increased need for smart glass products that meet evolving regulation and reduce carbon emissions. Meanwhile, homeowners continue to sustain the DIY boom stimulated by the pandemic.
M&A BACK ON THE AGENDA
Given this positive outlook, many management teams are now thinking about acquiring a business. Equally the attritional effects of the pandemic have led more and more business owners to consider selling up, with many realising how much of their family wealth is tied up in their business. Some of the typical reasons for selling a business – including age, health, lack of succession and other family-related issues – have only been exacerbated by COVID-19. As such, M&A activity rallied strongly during 2021, with dealmakers returning to the market after navigating the initial wave of COVID-19 disruption and uncertainty in 2020. Indeed, M&A deal volumes in the first half of 2021 climbed 59% year-on-year. With a diverse pool of funders keen to deploy investment capital, these high levels of activity are expected to be at the very least maintained in the next 12 months as firms pursue ‘buy and build’ strategies and the market de-risks through consolidation. As a result, highly sought-after businesses are likely to continue to attract interest from key strategic acquirers and financial investors while commanding a premium price.
Gary Hyem, Director at FRP Corporate Finance
MARKETING FOR SALE
Whether seriously exploring a sale or tentatively assessing strategic options for the future, it is a good time for business owners and shareholders to think about their objectives and consider their future exit options – be they full or partial. For privately owned businesses, there are a plethora of options available for owners to realise their objectives, including a sale to a strategic acquirer or private equity; a management buyout or buy-in; flotation; and the increasingly popular route of establishing an employee ownership trust. A lighter touch de-risking strategy could involve an owner selling a share of the business to a corporate partner or the management team - this route is known as either a two-stage exit or a vendorinitiated management buy out (“VIMBO”) depending on the purchaser. Alternatively, an owner can use private equity and / or debt funding to inject funds into the business that can then be withdrawn by the owner as part of a “cash-out” deal.
Whatever the owner’s objectives, there are a wide variety of alternatives that can be explored with the support of professional advisers. For those preparing to exit their business to consider, there are some key points to consider: • Build your business exit strategy and
team. Although many business owners wish for prospective buyers to knock on the door, buyers typically must be sought out and evaluated. Relying on someone with the network and experience to oversee the sales process can help you get the best deal.
• Know your priorities and values.
Do not discount the emotional side of selling a business. For one business owner, the right buyer may be the organisation with the deepest pockets.
For another, it may be the group that understands the business and will sustain it. Many owners desire a combination. You should clarify your
priorities and values before you are faced with the decision of choosing a buyer. • Protect what’s yours. Intellectual property can be a company’s most significant asset. It differentiates you from your competition, is an important marketing tool, and is your knowhow.
It is also a major driver of value. Any intellectual property that belongs to your business (proprietary technologies, copyrights, patents, design rights, and trademarks) should be legally protected in advance of a sale.
• Get your house in order. Before taking your company to market, you will want to compile all of the required records and have them organised and ready to share. It also means that you should seek to resolve any outstanding issues where possible and renegotiate contracts that are near to renewal before trying to sell. Look for ways of enhancing profitability without cutting away at the core of your business. • Maintain business as usual. Going through the lengthy process of selling a business will certainly provide distractions. No matter how easy it is to become consumed in the details of the sale, it is more important than ever that you stay focused on the daily operations of the business and ensure that it is running at its best possible level. • Think like a buyer. Think about why they would want to buy your business and what opportunities it affords them in the future. If you can improve your business and develop it as a strategic asset before you try to sell, you can increase its value.
• Predetermine your role. To what extent do you plan to relinquish control of the company? Do you wish to remain an employee or a member of the board? You should think these options through before going to market so that you can find a buyer that supports your intentions. • Have a post-sale plan. Consider what life will look like following the sale. Think about what your financial picture will look like. How will you invest your posttax proceeds to maintain your financial health? How much cash will you take at closing? What about stock options? While the prospect of selling a business may seem overwhelming, taking these points into consideration in advance of going to market will put business owners on the path towards achieving their ultimate objectives while maximising the value they can achieve. In a future article we will look at funding options and how to acquire a business.
For a confidential discussion about your business and your plans, please email gary.hyem@frpadvisory.com.
THE LUMI
This is the look that confirms we’ve got a sale way before any words are exchanged, says Lumi Windows’ Asa McGillian
As it has been on sale now since 2015, the same year that it won the G Awards’ Product of the Year trophy, the highly distinctive Lumi Window has sold steadily in its various incarnations, from the original triple glazed ‘Passivhaus’ model, through to the current torch-bearer, Lumi Aluminium. It’s easy to see why: the distinctive edge-to-edge glass, ‘frameless’ style that instantly distinguishes Lumi from every other window, is perfectly at home in aluminium framing and sits well with homeowners and professional designers seeking a contemporary glazing solution for residential installations. Even though the aesthetics of Lumi make it difficult to distinguish between the GRP, GRP/PVC-U hybrid and aluminium framed versions, the mindset that insists upon the ‘architectural purity’ of aluminium framing, is satisfied by this new version. It is, arguably, what Lumi should have been all along. Thus, Lumi Aluminium is making life easier for the brand’s network of dealers spread throughout the UK and Ireland by simplifying its sell: the Lumi window is now what buyers assume it to be. Lumi creator Asa McGillian explains: “When we designed the original Lumi window we wanted it to be the best in terms of performance as well as aesthetics. Manufactured using GRP for all framing for strength and insulation, it was and still is heavily over-engineered – we still sell the window in significant numbers for high-end specifiers. For the home improvement market we produced the GRP/PVC-U double glazed version which has done very well, and which has given us a very good footing. But throughout, there has always been this thing about Lumi being aluminium.
“Every version of Lumi has looked similar,” continued Asa, “as the external edge-to-edge glazing hides the sub-frame anyway. But many buyers expected it to be aluminium. So when we launched Lumi Aluminium early in 2021 we were pushing against an open door.” Asa says this is part of what he means by the ‘Lumi Glazed Expression: “Buyers of conventional sash windows tend to have a good idea what they are looking for and it is just the detail that changes,” suggests Asa. “But with Lumi the response when seeing the window or door for the first time ‘in the flesh’, is more profound. Our salespeople say that they know immediately when they have a customer on board because of that initial reaction to the look of Lumi – because there is nothing else like it. And after that it is about securing the sale, not losing it for any reason – customers love it or don’t, from the first time they see it. “But, in the past we have lost sales because the frame was not aluminium. Homeowners especially love the window because of its strong architectural aesthetic, and we have sold a significant number when paired with Lumi sliding doors, which have always been aluminium framed.
“Now of course we can cover all the bases,” adds Asa, who is disarmingly frank about the window into which he and the company has put so much energy and investment. “We have the original ‘ultimate’ Lumi; Lumi 2 that we manufacture for the home improvement sector, which has driven up volumes significantly, is simple to fit and has enormous appeal amongst a wide spread of homeowners; and Lumi Aluminium, which is fast becoming the most successful Lumi window yet.” All Lumi windows look similar, despite the difference in specification and framing materials and in acknowledging the potential for confusion the company has produced literature and clarification on the website to highlight the differences and pricing. Similarly, the ease with which Lumi Aluminium and its Lumi 2 stablemate are handled and fitted, including the bonded glazing and its robustness, are also shown in a new video (https://youtu.be/ jsLwzZtzpmw). That aluminium provides the ideal framing material for Lumi is confirmed by what turns out to be a quirky chance: “Now that we have launched Lumi Aluminium nobody believes that the Lumi name, that it is part of the word ‘aluminium’, is a coincidence,” says Asa. And that is a story that he is sticking to.
For further information go to: https://lumiwindows.com
