Market Leader

• 26 years of operations and expertise
• Significant scale and dense coverage, with multiple businesses and touch-points
• Broadening overall industry position with room for growth

Relationships

• Long-established supplier and customer relationships
• Partnership with 199 suppliers in 22 countries
• Broad and diverse customer base, with 71,384 active accounts and over 5.3 million orders processed in 2018

Distribution Network

• Significant warehousing network and inventory positions, supporting the customer service proposition
• Substantial time and resources required to replicate, creating a significant barrier to entry
• Largely freehold portfolio underpinning value, with property, plant and equipment assets totalling £102.0 million

Financial Strength

• Strong balance sheet and operational cash generation
• Net cash of £36.7 million as at 31 December 2018, and included acquisition spend of £9.1 million during the year
• Strong cash generation, with cash generated from operations 121% of operating profit

Efficiency Initiatives

• Gross margin improved 130 basis points to 32.3% over two years*, with focus on gradual improvement
• Multiple efficiency initiatives underway aimed at improving operating margin
• Initiatives at early roll-out phase and trialling to positively impact coming years

Dividend

• Continued commitment to progressive dividend policy
• Total ordinary dividend of 25.0 pence in 2018
• Intention to maintain 2019 dividend in-line with 2018 reflecting confidence despite lower profit guidance