GGF Annual Report 2016for the year ended 31st December 2015

Glass and Glazing Federation

01 President’sReport 402 ChiefExecutive’sSummary 6 03 TechnicalMatters 804 ConsumerIssues 1005 MarketingActivity 1206 FinancialReport 1407 GGFGroups,RegionsandCommittees 1608 GGFStaff 18

Contents

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The GGF will continue to lobby Government to support energy efficiency and ensure inclusion of glass and glazing products within any future schemes.

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2015couldbedescribedasayearofchangeonmanyfrontsbuttheGlassandGlazingFederationremainedfairlystablefrombothafinancialandanoperationalperspective.

ThechangestothetradingenvironmentsawnewlegislationaffectingconsumerfacingbusinesseswiththeConsumerRightsActbecominglawinOctober2015.Alignedtothisnewlaw,theGGFsimultaneouslyrevisedandrelauncheditsConsumerCodeofPractice–whichgainedCharteredTradingStandardsInstituteapprovalinearly2016.Duringtheperiod,theGGFHomeImprovementandMarketingdepartmentsworkeddiligentlytoimprovetheoverallconsumerpackagetosupportMembers,includinganimproveddepositindemnityscheme,anewarbitrationprocess(TheGlazingArbitrationScheme)andanewconsumerwebsite(MyGlazing.com)toofferconsumeradviceandtopromoteGGFMembers.InadditiontheGGFalsolaunchedanewonlinebookshopwhereconsumersandnon-MemberscanpurchaseGGFpublications.

In2015,thegeneralelectionsawtheUKvoteforamajorityConservativeGovernment.ThepreviousCoalitionGovernment(2010-2015)initiallyhadastronggreenagendawhichsawtheintroductionofseveralenergyefficiencyschemesaimedathelpinghomeownerssavemoneyonenergybillswhilstreducingcarbonemissions

tosubsequentlyhelptheoverallenvironment.However,during2015,wesawcutstogreenlevies,thescrappingofthezerocarbonnewhomestargetandthegovernmentwithdrawaloffundingfortheGreenDealFinanceCompanywhichineffectfinishedtheflounderingscheme.

Followingthecutsandaclearlackoffinancialorpoliticalsupportforenergyefficiency,thereisageneralfeelingthatthecurrentGovernmentissteeringawayfromgreenissuesandfocusingmoreontheeconomy.Thatsaid,in2015,theGovernmentdidcommissionanindependentreviewofallitsexistingenergysavingschemesandtheGGFhasbeeninvolvedinthisprocess.ThereisuncertaintyaroundtheGovernment’splansandpoliciesonenergyefficiencybuttheGGFonbehalfofitsMemberswillcontinuetolobbyGovernmenttosupportenergyefficiencyandtoensuretheinclusionofglassandglazingproductswithinanyfutureschemes.

InMay2015,theFederationalsohelpedformanewindustrybodycalledTheGlazingSupplyChainGroup.ThisnewGroupconsistsofallthespecialisttradebodiesrepresentingmaterialsinourindustrywiththeoverarchingobjectivebeingtocreateastrongerpoliticalvoicefortheindustrytoGovernment.TheGroup’sfirstcompletedprojectwastheNationalEnergyFoundation(NEF)

independentresearchreportontheenergyefficiencyofwindows/glazingandtheircontributiontotheoverallenergysavingandreductionincarbonemissionsfrombuildingsintheUK.ThisreportwaslaunchedonthenewGlazingSupplyChainGroupwebsite,www.glazingsupplychaingroup.org.uk.

Duringtheperiod,theGGFBoardbegantoassesstheFederation’sstrategy,governanceanddirectiontoimproveservicelevelsandMembers’benefits.AnindependentconsultancywascommissionedtoreviewtheGGF’sstructure,operationsandoutput.Bythesummerof2016,anewstrategicdirectionandgovernancewillstarttobeimplementedandwearesureMemberswillseeadifferenceandbenefitfromsmootheroperationsin2016.

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01President’s Report

Brian Baker President

We have continued to prosper and grow with 34 new Member companies joining the Federation.

Thetoughtradingconditionscontinuedthrough2015butGGFMemberswereabletoholdtheirowninthemarketplace.ThestatisticsfromFENSA(thepredominantCompetentPersonSchemeforEnglandandWales)showedthatdomesticinstallationsforWindowsandDoorsweredown6.6%onthefiguresfor2014.Thatsaid,theGGFhascontinuedtoprosperandgrowwith34newMembercompaniesjoiningtheFederation,withonly18resignationsand3liquidations-astrongpositivepositionbothnumericallyandfinancially.

TheGGFperformedwellfinanciallyacrosstheGroup-whichconsistsoftheFederationandsixcommercialcompanies(whollyownedsubsidiaries)-andthedetailsarehighlightedlaterinthisAnnualReport.ThesubsidiarycompanieswithintheGroupprovidedthenecessarydividendstoallowtheFederationtocontinuetoprovidefirstratebenefitsforitsMemberswhilstkeepingMembers’subscriptionsatanaffordablelevel.

WehavecontinuedwithourMembershipLiaisonprogrammetoensurethateveryMemberiscontactedeveryyeartoensuretherecordsweholdareuptodateandthatwecanbeawareofanyissuesorconcernsthatMembersmayhave.

WorkcontinuedthroughtheyeartoreviseourRulesandnewConsumerCodeofPracticetohelpusproceed

towardachievingCodeapprovalfromtheTradingStandardsConsumerCodesApprovalScheme.Byyearendeverythingwasoncourseforfullapprovalearlyin2016.

InHealthandSafety,weappointedanewHealthandSafetyManager,PhilPinnington.HisfirsttaskwastosetaboutreviewingGLASSCharterandtheMeritSchemetoproduceamorebeneficialScheme.TherewasalsoagreatdealofworkwithintheHealthandSafetyCommitteetooverseethereviewofallhealthandsafetypublications.

TheTechnicalDepartmentalsohadanotherverysuccessfulyearintheirstandardisationworkandthereviewingofthelibraryofGGFDataSheetsandTechnicalPublications.AllofthetechnicalworkduringtheperiodishighlightedlaterinthisAnnualReport.

TheMarketingsectionofthisReportwillalsohighlighttheresultsofsomeexcellentpromotionalstrategiesthatweimplementedduring2015withthelaunchofthreenewwebsites,includingMyGlazing.com,thenewconsumerwebsite,deliveryofahighprofileeventsscheduleandanincreaseinPRactivitycreatinggreaterawarenessoftheGGFanditsMembership.

Duringtheyear,theUKheldaGeneralElectionwhichsawtheendoftheCoalitionGovernmentandamajorityvictoryfortheConservativePartyand

anewCabinetformed.WecontinuetoworkwithGKStrategy,ourpoliticaladviserstogainaccesstothedecisionmakersofWestminsterandalsoraisetheprofileoftheGGFwithMPsandmembersoftheHouseofLords.

TheGGFanditssubsidiarycompanieswillbemovingtonewpremisesin2016aswehaveoutgrownAyresStreet.Workcontinuedthrough2015,followingthepurchaseofthenewbuilding,tosourcetherightcompaniestomanagethefit-out.AswithAyresStreet,theaimistohaveaHeadOfficethatisashowcaseofthestrengthsandexcellenceofourIndustry.WewillbeutilisingasmuchglassasispossibletoprovideafirstclassworkingenvironmentforourStaffandamodernvenuethatourMemberswillenjoywhentheyvisitformeetings.

Thankyouagainforyourcontinuedsupportandlet’salllookpositivelytothefuture.

02Chief Executive’s Summary

Nigel Rees Chief Executive

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ThenewGGFHeadOffice,RushworthSt,London.

Steve Rice Director of Technical Affairs

InAugust2015,IwasappointedGGFDirectorofTechnicalAffairs.Bringingtotheroleover25yearsoftechnicalexperienceincludingthelast8yearsasDirectorofGlazing,IsetoutthreekeyobjectivestoimprovethedepartmentforthebenefitoftheGGFMembership.

ThefirstaimwastoimprovecommunicationsandtheinterfacebetweentechnicalstaffandGGFMembersandthiswasachievedbyintroducingnewsystemsinthedepartmentandpromotingtheGGFTechnicaldepartmentcontactdetailsinseveralways.

Secondly,weundertookafullreviewoftheFederation’stechnicalpublicationsandtheproductionprocess.ThefinalobjectivewastorestructurethedepartmenttoensurethemostappropriatememberoftheGGFtechnicalstafffocusedtheirindustryexperienceonspecifictechnicalissuesandGroups.

TheperiodwasthereforeverymuchaboutpreparingtheTechnicaldepartmentandourMembersforamoreproductivefutureworkinginharmonyforthebenefitforallourMembers.

Duringtheyear,thedepartmentworkedonkeyareassuchas:

• ConstructionProductsRegulation(CPR)andCEmarking,providingupdatesandofferingnewguidanceonusingsharedtypetestingevidencetoachievecompliance.

• FireResistantGlazingwiththelaunchofthenewvideoandauniquetrainingcoursewhichwasanominatedfinalistintheindustryG15Awards,plusco-exhibitingattheFIREXshow.

• WindowFilm–includingresearchworkwithBREontheenergyefficiencybenefitsofwindowfilmandapresentationatTheEnergyManagementExhibition.

• SecurityGlazing–presentationsandtechnicalguidanceatTheCounterTerrorExpoplusrevisionoftheGGF“SafetyandSecurityGoodPracticeGuide”.

• GlassRepair–launchofthenewGGFDataSheet“GlassRepairRemovalofSurfaceDamagefromGlass”,whichcomplementstheGGFGlassRepairbrochure.

• Attendanceandtechnicalconsultationattheinternationalconference-GlassPerformanceDays(GPD)2015.

• Acoustics–inJanuary2015,theGGFlaunchedanewtechnicalguideonhowglassandglazingcanreducenoise.

• BuildingRegulationsandStandardsincludingupdates,requirementsandtheimplicationsfromApprovedDocumentQ(ADQ)SecurityDwellings(2015Edition).TheTechnicalteamalsoundertookanewprojectforaCertifiedContractorsSchemewiththeScottishGovernment.

• Conservatories–newprocessdevelopedwithWaterUKforbuildoveragreementsandareviewoftheGGF“GuidetoGoodPracticeintheSpecificationandInstallationofConservatorieswithintheUnitedKingdom”.

• WindowsandDoors-includingafullreviewoftheGGF“GuidetoGoodPractice:InstallationofReplacementWindowsandDoors”inanticipationofanychangesmadeintheBritishStandards2016.

2015wasayearofpreparationaheadofwhatisexpectedtobeahighlyproductive2016whenwewillseethelaunchofmanynewtechnicalpublications,astrongertechnicalvoiceatkeymeetingsofindustrygroupsbutmostimportantlyadedicatedandfocusedteamofin-housetechnicalexpertsonhandtohelpGGFMemberswithtechnicalissues.

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Our focused team of in house technical experts are on hand to help GGF Members with technical issues.

03Technical Matters

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The GGF expects the new Consumer Code to enhance the offering by its Member companies to consumers.

04Consumer Issues

Brian Smith Director of Home Improvement and Membership

CONSUMER CODE OF PRACTICE

In2015,theGGFaimedtosetafirstfortheglazingindustrybyobtainingfullCharteredTradingStandardsInstitute(CTSI)approvalforitsnewConsumerCodeofPractice.TheConsumerCodestipulatesthehighstandardsthatMembercompaniesmustadheretowhendealingwiththeircustomers.

ThenewcodewaslaunchedinJuly2015andwasrevisedtotakeaccountofallnewconsumerlegislationin2015andtoenhancetheconsumerprotectiongivenbyMembers.ThenewCodewassentouttoMembersalongwithGGFGuidanceondealingwithvulnerableconsumers,andthelatestversionoftheRulesoftheGGF.

AspartofthenewCodeandtoenhancethebenefitstoconsumersofdealingwithGGFMembercompanies,attheendoflastyeartheGGFincreasedthedepositandstagepaymentprotectionto50%ofcontractvalueor£12,500,viatheGGFDepositIndemnityScheme.

TheGGFexpectsthenewConsumerCodetoenhancetheofferingbyitsMembercompaniestoconsumers,andcontributetoagrowthintheirsales.Inparticular,thenewCodefitsinextremelywellwiththenewGGFconsumerwebsite,MyGlazing.com,launchedinearlySeptember2015.

TheGGFConsumerCodegainedfullapprovalfromtheCharteredTradingStandardsInstituteConsumerCodesApprovalBoardinSpring2016whenBaronessChristineCrawley,PresidentofCTSI,presentedtheGGFwithitsprestigiouscertificateattheHousesofParliament.

Monitoring Performance of Members in the Code

Therearethreemethodsbywhichconsumer-facingGGFMembers’performanceswillbemonitoredundertheCode:complianceaudits,consumercomplaintsandconsumerreviews.

AllCodeMemberswillbeauditedeachyeartoensurecomplianceandtheGGFexpectstocompletethefirstyearauditbytheendof2016.

CustomersatisfactionofGGFMemberswillbemeasuredthroughindependentreviewspostedbyconsumersviaMyGlazing.com(theGGF’sconsumerwebsite).Thesereviewsarepoweredbymylocalservices.co.uk,whichalsooperatestheCTSIConsumerCodesDirectory,whereGGFMembersarealsolisted.

Conciliation Scheme

Inlate2015,theFederationappointedanewConciliationOfficer,SteveLipscombewhohasmanyyearsofindustryexperience.Duringtheyear,approximately1,000consumerquerieswerereceived,ofwhich334werecomplaintshandledthroughtheGGFConciliationScheme.Themaincauseforcomplaintwasthecategoryofworkmanshipinstallation,accountingfor22%ofallcomplaints.Theaverageresolutiontimewas6.8weekswith50unresolvedcomplaintscarriedoverto2016.Inaddition,21lettersfromconsumerswerereceivedthankingtheGGFConciliationDepartmentfortheirassistanceinresolvingtheircomplaintorquery.

AlignedwiththenewConsumerCodeandimprovedConciliationScheme,theindependentTGAS(TheGlazingArbitrationScheme)wasintroducedforanydisputeswheretheGGFConciliationSchemeisnotabletoreacharesolution.ItispleasingtoreportthatonlyoneunresolvedcomplaintwasreferredtoTGASin2015.Thiscasewasfoundinfavouroftheconsumer.

ComplaintswhichrelatetothehighpriorityareasoftheConsumerCodearenowcategorisedseparately.Therewerejust3complaintsregardingtelesalesin2015andjustonecomplaintregardingcoldcalling.Themajorityofothercomplaints,251werefromcustomersofcompaniesover£30mturnover,55ofcompaniesbetween£3mand£30mturnover,and28ofcompaniesunder£3mturnover.

Summary

AlandmarkyearwhichsawtheGGFprovidetheessentialinformationandguidancetohelpMemberscopewiththenewConsumerRightsActin2015.TheimprovementoftheGGF’sconsumerschemes,revision,relaunchandsubsequentapprovaloftheGGFConsumerCodeofPracticeaswellasthedevelopmentofstrongrelationshipswithkeyinfluencersinGovernmentandtheCharteredTradingStandardsInstituteclearlyshowstheGGFisleadingthewayforourindustryandmostimportantlyhelpingGGFMembershandleconsumerissues.

Baroness Crawley presents Brian Smith with Code Approval Certificate

TherewasaseachangefortheMarketingDepartmentin2015,whentheGGFBoardsanctionedthedecisiontomarketdirectlytoconsumers.ThiscouldhavebeendeemedanunusualstepforaTradeFederation,butitwastakenfollowingtherevelation-viaGoogleAnalytics-thattheexistingGGFwebsite(www.ggf.org.uk)wasattractingmorethan100,000homeownerslookingforguidanceandinformation.

Asaresultofthevisitingconsumeraudiencetoitstradewebsite,theGGFinSeptember2015,launchedMyGlazing.com-anewonlineplatformofferingconsumeradviceandcontainingasearchdirectoryofconsumer-facingGGFMembercompanies.

Longterm,theintroductionofMyGlazing.comshouldprovetobeanimportantandfruitfulchangetotheGGF’soverallmarketingmix.Whenthefullimplementationoftheconsumermarketingplanisunderwayin2016,boththeGGF,itsMembersandconsumersacrosstheUK,shouldstarttofullyexperiencethebenefits.

Events

TheGGFparticipatedandsupportedthefollowingexhibitionsandeventsin2015:

• SecurityandCounterTerrorExpo–promotingsafetyandsecurityglazingandwindowfilm

• FIREXExhibition–promotingfireresistantglazingincludingthenewFireResistantGlazingStandardandtrainingcourse

• TradingStandardsConferenceandExhibition–buildingrelationshipswithTradingStandardsOfficersandcreatingawarenessofandhighlightingtheworktheGGFdoesforconsumersanditsconsumer-facingMembers

• NationalHomeImprovementCouncilAwards(NHIC)–supportingandpromotingGGFMembersoperatingintheHomeImprovementSector

• EMEX(EnergyManagersExhibition)–promotingenergyefficientglassandglazingproductstoenergyandpropertymanagers

• G15Awards–sponsoringandcreatingawarenessoftheGGFbrandandsupportingMembersnominatedfortheindustry’smostprestigiousawards

Members’ Day

Forthesecondconsecutiveyear,GGFMembers’Daywasresoundingsuccesswith130delegatesfillingGlaziersHallinLondonforadayofpresentations,launches,awardsandnetworkingforMembers.TheeventwasopenedbyLordRedesdaleandconsistedofastronglineupofkeynotespeakersfromthefieldsofpolitics,retail,broadcasting,businessandmarketresearch.

GGF Online

AswellasMyGlazing.com,themarketingteamalsocreatedandlaunchedanothertwonewwebsites.

May2015sawtheintroductionofwww.glazingsupplychaingroup.org.uktosupportthenewindustrylobbyingarm“TheGlazingSupplyChainGroup”ofwhichtheGGFisafounderMember.

InJune2015,theGGFshopwaslaunchedcreatinganonlinespacewhereprintedcopiesofGGFpublicationscanbepurchasedwithGGFMembersenjoyinganaverage75%discountacrossallprintedtitles.(MemberscanalsodownloadallpublicationscompletelyfreefromtheMembersAreaoftheGGFwebsite.)

PR Coverage

Over300exclusivearticlesproducedforGGFNewswireandGLASSi72pressreleasesreachinganestimatedreadershipof14macrossalltradeandconsumerprint/onlinemedia.

Summary

TheGGFMarketingandCommunicationsDepartmentdeliveredyetanotherhighlyproductiveyearembracingtheconsiderablechangeinthemarketingstrategy.Withanewfocusonconsumermarketingcoupledwiththeconsistentdeliveryofeffectivetradeandmembershipmarketingactivity,theDepartmentcomprehensivelysupportedGGFMembers.

2016promisestobeanevenbiggeryearonallfrontsfortheGGFMarketingandCommunicationsDepartmentasweaimtoincreaseandimproveMembers’benefits.

We delivered yet another highly productive year and 2016 promises to be an even bigger year on all fronts.

05Marketing Activity

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James LeeDirector of Marketing and Communications

Online Statistics 2015

GGF website growth:

517,302 page views on the GGF website

165,837 sessions

128,284 unique users

15,780 downloads of all technical publications

250 enquiries to join the GGF via the website

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AlthoughtheUKeconomycontinuedtoshowsomepositivesignsofgrowththrough2015,thetradingconditionsremainedchallengingforcompaniesintheGlassandGlazingIndustry.Againstthisclimate,thesubscriptionincomefortheGGFshowedanincreaseon2014.TheFederation'ssixsubsidiarycompaniescontinuetodevelopandgrowinordertosupportMembershipincome,continuethedeliveryofmemberbenefitsandtoensurethesecurityoftheFederationandtheGGFGroupasawhole.

Thecontinuedpositivegrowthstrategyinthesubsidiarycompanieshasseenpre-taxprofitsfortheGGFGroupgrowto£952,503,anincreaseof£492,045over2014.AsaresultofthisgrowththeGGFGrouphasinvestedinlargerofficestoaccommodatethegrowingnumberofstaffinitssubsidiarycompaniesandtogiveGGFmembersimprovedfacilitiesformeetingsandtonetworkwithothermembers.

TheGGFBoardremainscommittedtogrowingallelementswithintheGroupandtoactascustodiansoftheGGFonbehalfofitsmembership.In2015,thiscommitmentisclearlyevidentastheGGFinvestedtoimprovebenefitsandserviceswhilstensuringstabilitywithasoundfiscalstrategy.

TheGGFexistsforitsMembersandassuchwillalwaysmaintainanongoingworkingrelationshipwithitsMembersthroughtheGGFspecialistgroup,regionalandcommitteestructure.

ThisinclusiveapproachensuresthatallMembersregardlessofsize,position,sectorandstatusreceivethecontinuoussupportandexcellentvaluefortheirsubscriptions.

The Board’s commitment is clearly evident as the GGF invested to improve benefits and services whilst ensuring stability with a sound fiscal strategy.

06Financial Report

Jane McCallion Group Finance Director and Company Secretary

Finance Report 2015

2015Restated*2014

Income

NetSubscriptions 970,589 917,645

Otherincome 2,442,921 3,113,766

3,413,510 4,031,411

Less

Administrativeoverheads (2,628,321) (2,975,905)

Operating surplus 785,189 1,055,506

Tax 150,000 225,000

Surplus after tax 935,189 1,280,506

Accumulatedsurplusbroughtforward 6,803,038 5,602,532

Actuarialmovementonpensionschemeliability 17,000 (80,000)

Members' funds 7,755,227 6,803,038

*Restated as per FRS 102.

07GGF Groups, Regions and Committees

GGF Groups and CommitteesGGFBoard

GlazingExecutive

HomeImprovementExecutive

Committees

Co-ordinatingGroupCommittee

ContractsCommittee

EnvironmentCommittee

FinanceandMembershipCommittee

HealthandSafetyCommittee

MarketingandCommunicationsCommittee

RegionalRepresentativesCommittee

StandardsCommittee

TrainingCommittee

Glazing Executive

EmergencyGlazingGroup

FireResistantGlazingGroup

FlatGlassCouncil

GlassRepairGroup

GlazingComponentsGroup

InsulatingGlassManufacturersGroup

LaminatorsGroup

ModifiedGlassSurfaceTreatmentGroup

SafetyGlazingGroup

SecurityGlazingGroup

SpecialistGlassApplicationGroup

ToughenersGroup

WindowFilmGroup

Home Improvement Executive

ConservatoryAssociation

ConsumerManagementGroup

HardwareGroup

HeritageWindowsGroup

RenewableTechnologyGroup

WindowandDoorGroup

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Countries and Regions TheGGFhaspresenceinthefollowinggeographicareas:

Countries

GGFIreland

GGFScotland

MENA(MiddleEastandNorthAfrica)

Regions – England, Wales and Channel Isles

EastAnglia

Kent,SurreyandSussex

London

Midlands

Northern,YorkshireandLincolnshire

NorthWestandNorthWales

WessexandtheChannelIsles

WestofEnglandandSouthWales

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GGF StaffNigel ReesChief Executive and National Secretary

Anne Campbell PA to Chief Executive

Human Resources

Frieda NaharyHead of HR

Finance

Jane McCallion Group Director of Finance & Company Secretary

Asha PyndiahGroup Financial Controller

Paul Mooney Group Assistant Accountant

Mila Guljasko Group Assistant Accountant

Melanie Nesello Group Credit Controller

Veronika Hughes Group Credit Controller

Karen SavageGroup Credit Controller

Technical

Steve Rice Director of Technical Affairs

Russell Day Senior Technical Officer

Ben WallaceConsultancy and Technical Officer

Richard Kells Consultancy and Technical Officer

Michael Sulston Technical Officer

Stephen LipscombeConciliation and Technical Officer

Training

Sarah Herbert Training Manager

Membership and Home Improvement

Brian SmithDirector of Home Improvement & Membership

Bridie Joyce Home Improvement Secretary

Jamila HowardConsumer Code Administrator

Paul EwensMembership Administrator

Regions

Peter Stuttard Regional Manager

Ann-marie WaughRegional Executive

Ian Young Regional Executive

Marketing and Communications

James Lee Director of Marketing and Communications

Natasha Erskine Marketing and Communications Executive

James Gilbert Marketing and Communications Co-ordinator

Health, Safety & Facilities

Phil Pinnington Director of Health & Safety

Myrlin Toone Health, Safety and Facilities Co-ordinator

Steve Sullivan Facilities and Post Room

Fatu Jau Receptionist

08GGF Staff

Glass and Glazing Federation

Glass & Glazing Federation40RushworthStreetLondon,SE10RB

Tel: 02079399101Fax: 08700424266

www.ggf.org.uk