Real estate consultancy giant Jones Lang LaSalle (JLL) has acquired Bluu in a further expansion of its Tétris design and fit-out business to create one of the the UK’s largest fit-out providers based on market share and turnover
JLL acquired the UK-based design and fit-out company Bluu as part of its continuing strategic investment plan for growing its Tétris design and fit-out business. The combination of Bluu’s 120-strong team with the existing 30-strong Tétris UK operation will create a market leader.
Since JLL acquired Tétris in 2007 the business, which has 23 offices in 16 countries across Europe, the Middle East & Africa and Brazil, delivered over 4,000 global projects for corporate, investor, retail and hotel clients. In 2014, turnover hit £151M ($236M).
After a transitional period, Bluu will move fully under the Tétris brand next year.
Guy Grainger, JLL UK Chief Executive, said: “We are delighted to welcome the Bluu team to our existing Tétris business. Both businesses share the same core commitment to client service excellence and innovative high quality approaches to design and fit-out in what is a fast-moving and rapidly evolving sector. This is an exciting and mutually beneficial combination. We will be able to draw on the strengths of our global scale operation and Bluu’s 15 years’ heritage and leading position in the UK to provide an unmatched design and fit-out service across the UK.”
Richard Harris, Managing Director, Tétris UK, added: “This is another significant step in our growth strategy for the Tétris business. We have long admired and respected Bluu and I am thrilled that we can now call them colleagues. Our combined team will be a major force enabling us to offer a comprehensive service, with the same values, under one umbrella.”
Robb Simms-Davies, CEO Bluu, commented: “This is the coming together of two great companies who are strategically aligned and we fully believe that both will benefit from the partnership. Bringing together our leading teams of designers, market knowledge and high quality delivery, along with Tétris’ global platform and corporate client base will ensure we are the market leaders in multi-disciplinary fit-out. This is a key moment for our business and a decisive move to take it to the next level.”
The acquisition takes immediate effect, with the Tétris UK team set to relocate into Bluu’s London offices later this year.
CCF has launched a new passive fire protection range in partnership with ROCKWOOL, Promat, and TBA Textiles.
With the introduction of CE Marking and amends to the Regulatory Reform Order, the market has seen an increase in demand for compliant and effective fire protection products. In recognition of this, CCF now offers everything required for a complete protection system, including fire stopping solutions, for service penetration in both new-build and retrofit projects, flexible barriers, and fire boards.
Annemarie Shotton, Category Manager for Insulation at CCF, said: “This is a strategic partnership with fire protection specialists TBA Textiles, ROCKWOOL, and Promat which allows us to offer exclusive fire canopies and fire protection boards, plus a wider range of market leading solutions for service penetration.”
Locate your nearest branch at www.ccfltd.co.uk/store-finder and receive the latest news by following them on Twitter @CCF_UK.
Despite years of austerity measures, education is set to benefit from a pickup in activity and wider opportunities, aimed at fulfilling the sector’s rising demand from the nation’s growing population. Amandeep Bahra, an economist at the Construction Products Association, reviews market changes.
According to the Department for Education (DfE), the number of pupils in state-funded schools across England is projected to rise to 8.0 million by 2023 from 7.1 million in 2014. Inevitably, growing demand for school places will put schools under increased pressure to meet capacity, which is already a basic issue for the education sector.
Another issue involves addressing the conditions of existing schools. According to the Property Data Survey Programme in January 2015, around a third of schools were graded C, which suggests they were exhibiting major defects and/or not operating as intended, and 9.0 per cent of all buildings surveyed were graded D, meaning life-expired and/or at serious risk of imminent failure. The government established a Priority School Building Programme (PSBP) in 2011 which outlined a pipeline of activity to begin addressing this issue.
Between 2011 and 2013, output in the education sector contracted in each year largely due to falls in both publicly-funded and privately-funded education. However, in 2014, output rose by 15.4 per cent compared to a year earlier and the sector was valued at £9.0 billion. Growth was mainly supported by the first batch of PSBP in addition to the backlogs of repairs. In addition, the UK higher education sub-sector is also currently benefiting from increased investment and will boost activity going forward. Also, more recent data suggest new orders rose by 9.9 per cent in 2014 compared to 24.2 per cent in 2013, which is likely to feed through into activity for the sector over the next 12–18 months.
Current schemes
In 2013, the PSBP began its first projects to address those schools in the worst conditions and requiring urgent repair. Through the programme, 260 schools will be rebuilt or refurbished across England. Of the total number of schools, 214 schools will be funded through a capital grant and 46 via a £700 million private funding initiative.
Four years after the programme’s inception, as of June 2015, only 25 of 260 schools have been completed and 138 have construction contracts approved. Despite schools being developed at a much cheaper cost under the PSBP compared to the previous school building initiative (Building Schools for the Future), primarily owing to smaller buildings and more standardised designs, progress has been slow. Activity has been held up by delays with procurement and achieving private finance. The first three of five batches under Private Finance 2 (PF2) secured funding in March, with the remaining two delayed until August. Construction on all schemes under the first batch started earlier this year with the first due for completion in August 2016. Construction on most of the other batches is currently underway with the fourth batch expected to begin in June 2016. Potential delays have been flagged, however, which could move PSBP activity beyond its initial target completion date of 2017.
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- First batch: seven schools in Hertfordshire, Luton and Reading worth £150 million
- Second: 12 schools in the North East worth £160 million
- Third: 12 schools in the North West worth £110 million
- Fourth: seven schools in Yorkshire worth £120 million
- Fifth: eight schools across the Midlands valued at £190 million
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In addition to the existing PSBP, the government announced in May an additional £2.0 billion funding for a second programme, PSBP2, which will undertake rebuilding and refurbishment projects across 277 schools between 2015 and 2021.
Higher education
Despite higher tuition fees and a 1.7 per cent fall in the total number of students over the 2013/14 academic year, according to the Higher Education Statistics Agency (HESA) the demand for student accommodation and investment into university facilities has risen. Student accommodation is mainly a derived demand from full-time students, which increased over the academic year 2013/14, whilst foreign student numbers have continued to rise. While this trend is expected to continue, the removal of the student number cap for UK universities this year is likely to provide a boost to student numbers.
According to Savills, the first five months of 2015 experienced record institutional investment levels in the purpose-built student accommodation sector mainly due to investment from overseas. High-profile accommodation continues to attract wealthy international students, and with increased competition for accommodation the overall demand for good quality accommodation has risen. Supply in the capital is already limited and faces pressure from the residential market. As a result, major developments in universities have been seen in regions outside London.
The largest development currently underway in the higher education sector is the £1 billion campus transformation at the University of Manchester, which will see construction span over eight years. The £1 billion North West Cambridge development is another major project which includes 3,000 new homes and 100,000 square metres of research space and a range of community facilities. Construction on the first phase is expected to begin this autumn and complete by 2017.
Other schemes include a new campus development at the Olympic Park for University College of London, a £120 million 2,000-bed student accommodation at the University of Sussex which will incorporate new facilities, and an £80 million Automotive Innovation Centre at the University of Warwick. In addition, a major regeneration project worth £80 million at Roehampton University is currently underway which includes a student accommodation block, and at Queen Mary University a conference suite and a new graduate facility worth £27 million is due for completion by late 2016. The University of Edinburgh has also invested in major renovation works covering ceiling repairs, new service installation and basement extensions which is expected to complete by 2017.
Overall, the Construction Products Association expects the sector to expand 3.7 per cent in each year between 2015 and 2017 before expanding further by 3.8 per cent in 2018. While schemes such as the PSBP are aiding the relief of capacity problems, the pace of the UK’s growing population could increase the challenges for the education sector given that the government has already announced further cuts in the budget this year. Prior to the budget, the government announced a £450 million cut in non-schools education as measures to reduce public sector debt.
Planned capital funding for the education sector also fell to £4.7 billion in 2015/16 compared to the initial planned £4.9 billion funding. Nevertheless, over the medium-term, activity is likely to be supported by ongoing work on higher education schemes and repairs and maintenance.
The Heradesign range of acoustic ceiling tiles from Knauf AMF has been installed at the new Post Office head office in Finsbury Dials, London. Heradesign ceilings in bold colours were installed in a concealed grid system in the two main entrance areas, which lead to striking ‘touchdown’ zones that wrap around the main atrium.
To create defined spaces with a sense of vitality and enclosure about them, Heradesign panels were colour matched to the floor and wall colours. The panels, which are manufactured from wood-wool for an attractive, naturally textured surface, can be specified in a wide variety of colours including pastels, solid and metallic using popular colour systems such as RAL, NCS and StoColor. They are available in a choice of fibres ranging from 1–3mm thick and in a number of sizes and edge details.
Senior Designer Mustafa Afsaroglu of architects HLW International explained what attracted him to Heradesign, commenting: “I liked the depth in texture of the panels – it added another layer to the ceiling. Acoustic control in the open area was key and Heradesign provides the necessary Class A sound absorption.”
One of the criteria for the project was to achieve SKA rating, an environmental assessment method, benchmark and standard for non-domestic fit-outs. Explaining its importance for the new HQ, Mr Afsaroglu said: “Sustainability was one of the big aspects of the process. Our aim was to achieve SKA Gold. Knauf AMF was particularly helpful in proving that the product was SKA compliant.”
The environmental credentials of Heradesign helped support the application for SKA rating as the wood-wool is sourced from sustainable forests which are FSC and PEFC certified and, when the time comes, the panels can be recycled or disposed of without any detrimental impact on the environment.
www.amfceilings.co.uk
Construction output growth has slowed from June’s four-month high according to the latest Markit/CIPS Construction Purchasing Managers’ Index (PMI).The survey found that while house building expansion was slowing commercial activity continued to rise. Subcontractor prices are continuing to rise.
July PMI data signalled a slight overall loss of momentum across the construction sector, with business activity and incoming new work both expanding at slower rates than in the previous month. The pace of job creation at construction companies nonetheless remained strong in July, while ongoing skill shortages across the sector contributed to a further steep reduction in subcontractor availability. Moreover, subcontractor charges once again rose at one of the fastest rates since the survey began in 1997.
Companies that reported an increase in business activity mainly cited strong inflows of new work. Anecdotal evidence also suggested that improving domestic economic conditions had created greater opportunities to tender, especially for commercial projects, while some construction firms noted that the resumption of delayed projects had provided support to business activity levels in July. However, measured overall, new order volumes expanded at a slightly slower pace than the eight-month high recorded in June.
In line with the trend for output and new orders, July’s survey data pointed to an overall slowdown in employment growth across the construction sector. However there were widespread reports of skill shortages across the sector. As a result, subcontractor availability dropped for the twenty-fifth month running in July, which is the longest continuous period recorded by the survey for over a decade.
Chris Temple, engineering and construction leader at PwC, said: “The ongoing skills shortage is an area of concern. The sector has serious skills gaps, and while the government’s plan to create three million more apprentices by 2020 will help in the long term, the situation will get worse before it gets better, as older skilled workers retire. The shortage is also driving up subcontractor bills and this, combined with continuing rises in the prices of construction supplies, means firms may continue to feel pressure on margins.”
Strong underlying demand for construction materials and low stocks at suppliers continued to drive up input prices in July, with the overall rate of cost inflation reaching its highest level since March.
Looking ahead, UK construction companies are highly upbeat about their growth prospects over the next 12 months, with more than half (55%) expecting an increase in business activity and only 4% forecasting a reduction.
Tim Moore, senior economist at Markit and author of the PMI survey, said: “July’s growth slowdown is the first for three months and perhaps a sign that the post-election impact on construction confidence has started to diminish. Commercial activity was a key growth driver during July, however, residential activity expanded at one of the slowest rates for over two years, highlighting that the house building sector is struggling to gain momentum despite supportive demand conditions.”
David Noble, chief executive at the Chartered Institute of Procurement & Supply, said: “New business wins were less in evidence as backlogs were tackled. Meanwhile, suppliers scrabbled to meet demand for a number of materials in short supply. The performance of suppliers continued to be muted, but the decline in performance was the least serious since May 2012. And though buying resumed at a slower pace, the response to new work and ongoing activity endured at a healthy rate.
Travis Perkins, parent company to CCF, has reported that revenue increased by 7.8% with like-for-like revenue up 5.7% in the first half year of trading in 2015.
The Group’s revenue increased by £212m, or 7.8%, to £2,943m. Like-for-like sales grew by 5.7% with additional growth through opening of 49 new branches. Adjusted operating profits increased by 5.7% to £185m.
In Travis Perkin’s Contracts Division revenue grew by 17.9% due to very strong growth in CCF and Keyline with both businesses taking significant market share. BSS maintained its position as the market leader in the industrial plumbing market in a more competitive operating environment.
Optimising the Contracts Division footprint is a key focus of Travis Perkins. The Group has been relocating and redesigning branches to improve operational efficiency. CCF added two additional branches and has plans to open further branches.
John Carter, Travis Perkins chief executive said: “The Group has delivered a strong underlying performance in the first half. Our key strategic priorities are unchanged; modernising General Merchanting, transforming Wickes and completing the Plumbing & Heating re-segmentation programme. We continue to anticipate a full year result in line with expectations and delivering against our targets including low double-digit profit growth and sales outperformance of our markets.”
Interior building products distributor CCF has introduced a range of DIN gauge metal tracks and studs to its exclusive Tradeline offering.
The new range provides an all-round solution to contractors fixing heavy-duty board and extends the already comprehensive selection, which includes galvanised metal sections, drywall fixings and anchors, paper joint and metal corner tape, sanding paper, intumescent, acoustic sealant, access panels and timber products.
Tradeline also offers a full-system warranty on selected products from the metal sections range, which is tested in third party accredited facilities to required standards for fire, mechanical, and acoustic performance while being flexible with the leading board brands.
www.ccfltd.co.uk
Adjacent to St Paul’s Cathedral is Wren-designed Chapter House, used by the Cathedral over the years for many purposes. The building has a rich history and narrowly avoided being destroyed during the Second World War.
With an important role as the administrative heart of the Cathedral, Chapter House was refurbished during the 1950s into offices and has recently been undergoing a major revamp to bring it up to 21st century office standards.
Secondary glazing specialist Selectaglaze has been contracted to improve the thermal insulation throughout the building, which will help to retain the building’s heat and reducing energy bills. Selectaglaze was specified because its products can reduce heat loss by up to 50 per cent, achieved by the bespoke fitting of the secondary glazing alongside the use high-performance seals.
Over 120 units have been installed in six different colour finishes to match the existing frames. Most were chosen from the slim-line range which is particularly appropriate for heritage buildings as the windows are unobtrusive and accepted as a reversible adaptation by heritage agencies across the UK.
www.selectaglaze.co.uk
The government has unveiled plans to establish a small business commissioner to help firms tackle the issue of late payment for goods and services.
The government say that proposals for the new commissioner will lead to a culture change in how small businesses resolve disputes with larger companies.
The government is publishing a discussion paper on the small business commissioner and is asking businesses for views on its proposals.
The commissioner would help small businesses handle disputes over late payment and other supply chain practices that hit them especially hard. It would help small firms access advice, support, mediation and conciliation services, and have the power to look into complaints and report on its findings.
This move is part of the government’s pledge to deliver a small business conciliation service and goes further to ensure we fundamentally tackle unacceptable payment practices that hit small firms.
Small business minister Anna Soubry said:”The government is backing small businesses to grow and create more jobs and opportunity. Small businesses are owed £26 billion in late payments and spend millions more chasing down money they have already earned through hard work. This is simply unacceptable – it limits their growth and productivity, and can put an otherwise successful business at risk.
“The small business commissioner will tackle the imbalance of bargaining power between small suppliers and large customers, and encourage them to get round the table and sort out disputes at a fraction of the cost of going to court. It will also provide advice, investigate complaints and see where further action is needed to clamp down on unfair practices.”
This is one of a number of measures to tackle late payment. The Small Business, Enterprise and Employment Act 2015 introduced a reporting requirement for the UK’s largest companies to report on their payment policies and practices.
The small business commissioner will be able to use this data to name and shame those behaving badly and celebrate those leading the way by paying promptly.
The consultation will close on 21 August 2015. To find out more CLICK HERE
The Glasgow’s Queen Elizabeth University Hospital is the largest contract to featuring Armstrong Ceilings’ bespoke Axiom perimeter solutions. The project has also been a recycling success with more than 10,000m2 or 35 tonnes of mineral ceiling tile off-cuts being diverted from landfill.
Two Armstrong Green Omega specialist contractors, recognised for their recycling expertise, were required on the project – Roskel Contracts and PFP.
Roskel Contracts installed the first laboratory phase: 30,000m2 of Armstrong’s Dune Supreme Tegular mineral tiles on a Prelude 24mm grid. Armstrong worked with the subcontractor to create 800m2 of exemplar mock-up areas of two sizes (600mm x 600mm and 1200mm x 600mm) of the square-edged Bioguard Acoustic.
For two and a half years, PFP had up to 60 men on-site installing 110,000m2 of Armstrong’s Bioguard Acoustic mineral tiles and a variety of wall-to-wall suspension and transition systems.
The colourful cantilevered pods incorporate a 100mm Axiom profile coupled with a bespoke 225mm Axiom profile, riveted together to create a 325mm bulkhead/upstand at a custom length of 3.6m.
A variety of Armstrong suspension systems were also used, including 70,000 linear metres of drywall grid systems, 12,000 linear metres of Axiom plasterboard-to-tile transition trims, 10,000 linear metres of Axiom profiles and 40,000 accessories, including connecting brackets, clips and hanging brackets.
James Bailey, from main contractor Brookfield Multiplex, said that the Armstrong wall-to-wall ceiling systems had met the requirements of the Scottish Health Technical Memorandum.
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