Heiton bids to reverse UK fortunes with appointment

The building materials group Heiton, owner of the Atlantic Homecare DIY chain, has appointed the president of the British Construction Federation to its board of directors in an effort to reverse the fortunes of under-performing UK subsidiary Cooper Clarke.

Mr John Gains (57), who is also chief executive of London-based John Mowlem & Co, will serve as a non-executive director, acting as adviser to Heiton's British division as it attempts to establish a significant presence in the UK's €5 billion building merchandise sector.

Bolton-based Cooper Clarke has struggled to realise its potential since it was acquired by Heiton in 1998.

With the Cooper Clarke operation failing to meet targets, Heiton posted a 10 per cent drop in profits to €19.9 million and an 11 per cent decline in earnings per share to 35.9 cents in the year to April 30th last. 2002. Net cash-flow from operating activities slumped to €24m from €27m in 2001.

The appointment of Mr Gains follows a recent overhaul of Heiton's British operation which saw Mr Grahame Hall named UK chief executive.

The group is confident that Cooper Clarke in particular will benefit from Mr Gain's intimate knowledge of the British construction market , said chief executive Mr Leo Martin.

He said: "Mr Gain's feel for the British market is second to none. His expertise will help the group's UK operation make further progress. We are disappointed with Cooper Clarke's performance to date and believe it can be turned around."

Concern over a sudden slow-down in the DIY market - which accounts for 40 per cent of Heiton's business - prompted a €4 million cost-cutting programme last year. The company hopes continued buoyancy in the Irish housing sector will boost profits next year.

Heiton has made no secret of its desire to become a significant player in the UK. But despite investing huge resources in its British subsidiaries, the bulk of turnover continues to be generated in the Republic.

Earlier this year, the group consolidated its Irish presence with the acquisition of Cork Builders Providers Ltd for €23.75 million. Heiton also took a 55 per cent holding in the Westmeath-based Wright Window Systems for €5.45 million.

Since becoming Mowlem chief executive in 1998, Mr Gains has presided over the transformation of the company from a building and civil engineering contractor to a construction support provider with an annual turnover of €30 billion.