Strategy and Performance

Strategy and Performance

Despite the turmoil in the wider economy our strategy has remained  
unchanged; we continue to drive for profitable, cash generative  
organic growth in the existing businesses through superior service  
and continue to deliver good shareholder value

People, Service, Practices

People

Developing the knowledge, expertise and skills of our employees is critical to the success of our Company


Service

Our customers are our priority. Delivering excellent service is our objective and we strive to meet our customers’ needs


Practices

Relationships are key to remaining competitive. If we are sensible in our business practices and do things in the right way, we will succeed

  Non Financial Key Performance Indicators
 

People

    

Service

    

Practices
 

Staff Retention

Minimising staff turnover is essential in retaining knowledge

   

Customer Service

Delivering a sustainable increase in active customer accounts through organic growth is vital

    

Health and Safety

Minimising lost time accidents makes sense from both the business and employee point of view and reduces cost
  2008 : 18.77%; 2009 : 16.98%;     2008 : 3%; 2009 : 2.3%;     2008 : 32%; 2009 : 51%;
 

Workplace

Monitoring the development of a high performance culture through employee opinion surveys is critical to success

    

 

    

Environment

Minimising CO2 emissions is a challenging goal which we measure in tons per employee
 

Surveys carried out

    

Our aim is to create shareholder value through market leadership in the supply of pipe, heating, plumbing, tools and industrial supplies

     2008 : 9.41 tons; 2009 : 10.39 tons;
 

Financial Key Performance Indicators
 

Revenue and Profitability

    

Return to Shareholders
 

Revenue Growth

Sustainable increase in revenue
2008 : 27.4%; 2009 : 4.0%; 		   

Operating Margin

Sustainable increase in margin
2008 : 4.92%; 2009 : 4.80%; 		   

Dividend

Sustainable dividend
2008 : 7.43p; 2009 : 7.43p;

Strategic Objectives 2008

Progress

Strategic Objectives 2009

Financial Target

Growth in revenue, profitability and cash flow		    

 

Revenue increased 4% to £1,340m
PBT decreased 0.9% to £57.8m
EPS remained at 33.3p
Net debt decreased by 17.5% to £86m

    

Financial Target

Meet our 2009/10 financial targets and the three year business plan

Customer Focus

Raise customer service standards throughout the Group		    

 

PTS – Best National Builders Merchant 2008
PTS – Environmental Initiative award
BSS – AMS Pumps Distributor of the Year award

    

Customer Focus

Consistently deliver excellent customer service

Partnering

Raise inter-Group awareness of products and channels of distribution 		   

 

Establishment of different inter company groups such as Cross Selling group, Olympic Team group, Common Products group and Web Trading Action group

    

Partnering

Demonstrate a commitment to partnering across the business to maximise opportunities

Develop new and existing markets

Developing new and existing growth opportunities		    

 

Focus on spares, renewable and drainage markets 		   

Develop new and existing markets

Maximise development and growth in existing and new markets

Leadership

Provide effective and reliable leadership		    

 

Realign latest acquisitions to Group culture and direction		    

Leadership

Demonstrate leadership at all levels achieving a high performance culture