Distribution

The Distribution business, PlaceMakers, reported operating earnings up 47 percent to $25 million.

Sales rose 3 percent despite the interruption to trading activity in the Canterbury region due to the earthquake in September 2010 and recurrent seismic activity.

The result was driven by an ongoing programme to reduce costs right across the value chain and improve margins at each branch.

Activity by DIY customers was also subdued but this was able to be offset by the re-launch of PlaceMakers’ customer loyalty programme. The Know How Card rewards DIY customer loyalty, and 31,000 new cards were issued in the 6 months to take active cards to 182,000.

There was a substantial lift in roofing sales with the launch of a residential installed solution in Christchurch and this initiative will be extended to other regions.

A number of branches are undergoing refurbishment (including Hawera, Albany, and Pakuranga) to ensure brand standards are maintained. A new branch will open in Pukekohe in April 2011 and several more locations will be finalised in 2011.

A new integrated trade operating platform is being launched across three Christchurch branches which will provide for full digital plan take off, materials estimating, pricing job management and delivery. This unique trading platform will provide a significant competitive advantage once it has been fully developed at a trade level.