Annual Report and Accounts - Hemscott IR

More documents

Recommendations

Info

Our Strategy The statements of Mission, Vision, and Values on page 6 of this annual report set out what we exist to do, the direction we aim to take the Group, and the way in which we believe we should work. The strategy we are following to achieve these aims is designed to maximise, over the long-term, shareholder returns through innovation, organic self-help initiatives and targeted expansion. It involves: • Creation, acquisition and development of businesses that seek to serve all the segments for the distribution of building materials in the UK; • Continuously improving the customer and supplier proposition in all our businesses to become the highest rated in each segment, as measured by customers, and as tested by seeking to outperform markets on a like-for-like basis; • Exploit the economies of scale this creates through the centralisation of common activities and common purchasing into low cost, highly efficient and powerful central functions; • Sustaining an organisational model that devolves authority to operating managers and allows them to compete with the most effective competitors with minimal constraints, but always maintaining very strong controls; • Operating a performance management system, closely matched to arrangements for incentives, that encourages the right economic behaviour and allows all colleagues to participate in the financial success of the Group; • Recruiting and developing people whose personal characteristics are consistent with a culture of customer sensitivity, continuous improvement and a drive for performance; • Cautiously, with a low-risk and low-capital approach that does not adversely affect profits and debt reduction, exploring the prospects for expansion in new markets. Management, at Executive Director, Executive Committee, Division and individual business levels, are held to account on both current performance and the delivery of improved capabilities on each of these aspects of strategy via a balanced scorecard. This scorecard forms part of the metrics for incentives for Executive Directors and the Executive Committee. The balance of measures is designed to ensure that management are focussed on both current performance and the long-term improvement and quality of the Group. 14
T R A V I S P E R K I N S A N N U A L R E P O R T A N D A C C O U N T S 2 0 1 2 Delivering our Strategy STRATEGIC DIMENSION People The table below shows how we approach the various dimensions of our strategy, how we judge progress and how our strategy is integrated with our management of the principal risks faced by the Group, which are set out on pages 44 and 45. Successful execution of our strategy is dependent upon maintaining our IT capabilities, purchasing and APPROACH Devolving authority to managers to allow them to compete in the market, but without weakening our control environment. Recruiting and developing people with attributes that support our core values. Operating a performance management system closely aligned to incentives. Coaching, guiding and holding people to account for their attitude as much as their performance. Meeting our corporate social responsibilities in areas such as health and safety, environmental and community relations. distributing goods effectively and recruiting and retaining the best people. We operate a strong and well-resourced shared service model, which enables branches to concentrate on delivering excellent customer service, whilst allowing the central teams to concentrate on innovation and leadership across the Group. KEY PERFORMANCE INDICATORS Colleague retention. Colleague engagement. PRINCIPAL RISKS AND UNCERTAINTIES Colleague recruitment, retention and succession. OVERVIEW Sales and margin management Exploiting economies of scale from growth to improve our proposition, gain further market share and improve operating margins. Centralising purchasing to increase the benefits of common purchasing. Improving our supply chain capabilities. Expanding our global sourcing activities to support our own brand proposition. Continuously improving our customer and supplier proposition. Harmonising product specifications across our businesses. Like-for-like revenue growth. Like-for-like sales outperformance. Gross margin gains from sourcing projects, less margin investment in proposition. Adjusted operating profit/margin. Competitive pressures. Information technology failure. Supplier dependency and direct sourcing operational difficulties. Cost control and asset management Exploiting the economies of scale delivered by growth and centralisation to improve our operating margins. Centralising most support services. Operating a well resourced and innovative property function to improve asset turn, lower property costs and realise surplus assets. Group overheads to sales ratio. Colleague productivity ratio. Adjusted ROCE. Information technology failure. Defined benefit pension scheme funding. Expansion Using our superior financial performance to expand our branch network so ensuring we penetrate all catchments in the UK. Extending our multi-channel capabilities. Adding additional channels or creating businesses to serve all segments of the UK building materials market where we can achieve synergies. Shareholder Value created from expansion projects (at individual site and whole business level). Information technology failure. Developing and owning trade parks and multiple brand sites. Financial Achieving market leading returns on sales and returns on capital employed. Reducing debt through cash generation. Increasing adjusted earnings per share. Optimising our dividend cover. Lease adjusted net debt to EBITDAR. Free cash flow. Adjusted ROCE. Adjusted EPS. Adjusted PBT. Adjusted Dividend cover. Market conditions. 15
Page 1 and 2: TRAVIS PERKINS PLC Travis Perkins T
Page 3 and 4: T R A V I S P E R K I N S A N N U A
Page 15: T R A V I S P E R K I N S A N N U A
Page 20 and 21: Chairman’s Statement FOR THE YEAR
Page 22 and 23: Chief Executive’s Review of the Y
Page 24 and 25: C H I E F E X E C U T I V E ’ S R
Page 30 and 31: Post year end acquisition We expect
Page 32 and 33: Deputy Chief Executive’s Review o
Page 34 and 35: D E P U T Y C H I E F E X E C U T I
Page 40 and 41: Finance Director’s Review of the
Page 42 and 43: F I N A N C E D I R E C T O R ’ S
Page 44 and 45: F I N A N C E D I R E C T O R ’ S
Page 46 and 47: Statement of Principal Risks and Un
Page 48 and 49: Environmental Report FOR THE YEAR E
Page 50 and 51: E N V I R O N M E N T A L R E P O R
Page 52 and 53: Health and Safety Report FOR THE YE
Page 54 and 55: H E A L T H A N D S A F E T Y R E P
Page 56 and 57: Directors Robert Walker Geoff Coope
Page 58 and 59: Corporate Responsibility Statement
Page 60 and 61: Corporate Governance Board committe
Page 62 and 63: Corporate Governance Audit committe
Page 64 and 65: Audit Committee Report • The effe
Page 66 and 67:
Directors’ Remuneration Report FO
Page 68 and 69:
Directors’ Remuneration Report ta
Page 70 and 71:
Directors’ Remuneration Report Re
Page 72 and 73:
Directors’ Remuneration Report Ex
Page 74 and 75:
Directors’ Remuneration Report Tr
Page 76 and 77:
Directors’ Remuneration Report Ex
Page 78 and 79:
Directors’ Report FOR THE YEAR EN
Page 80 and 81:
Directors’ Report listed on the L
Page 82 and 83:
Statement of Directors’ Responsib
Page 84 and 85:
Income Statements FOR THE YEAR ENDE
Page 86 and 87:
Balance Sheets As at 31 December 20
Page 88 and 89:
Consolidated Statement of Changes i
Page 90 and 91:
Cash Flow Statements FOR THE YEAR E
Page 92 and 93:
NOTES TO THE FINANCIAL STATEMENTS
Page 94 and 95:
NOTES TO THE FINANCIAL STATEMENTS D
Page 96 and 97:
NOTES TO THE FINANCIAL STATEMENTS 4
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Five Year Record Consolidated incom
Page 134 and 135:
Notice of Annual General Meeting No
Page 136 and 137:
Notes to the Notice of Annual Gener
Page 138 and 139:
Directions to the Annual General Me
Page 140 and 141:
Other Shareholder Information recei
Page 142 and 143:
140 Shareholder Notes
Page 144:
TRAVIS PERKINS PLC Travis Perkins p
show all

Annual Report and Accounts - Hemscott IR

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?