Market Leader

• 28 years of operations, with market-leading position, people and expertise.
• Significant scale and market penetration, with centralised resources and multiple businesses.
• Increasing sustainability through broadening presence in the industry and growing in underweight product categories, customer groups and market segments.

Financial Strength & Dividend

• Strong balance sheet and cash generation, with cash generated from operations representing 146% of statutory operating profit in 2019.
• Net cash of £27.0 million as at period-end, and following capital expenditure of £18.3 million on new Ipswich regional distribution centre and existing network in 2019.
• Ongoing commitment to a progressive dividend policy.

Long-established Relationships

• Long-established supplier partnerships, working with 190 suppliers in 19 countries during 2019.
• Exceptionally broad and diverse customer base, with 5.3 million orders processed in 2019.
• Modest average order value of £136 reflecting RMI spend towards the lower-end of the range, with little reliance on larger projects and new construction activity.

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.

Operational Improvement Programme

• Comprehensive programme underway to grow revenue and improve operating performance, the customer service proposition and margin.
• Early-stage financial contributions able to offset general non-employee related year-on-year inflationary pressures in 2019, with increasing future contributions able to enhance margin.
• Improvements to customer service already evident through increased product availability and more efficient delivery operations, which additionally reduces carbon footprint.

Extensive Network

• Extensive network and inventory supporting the customer service proposition, with inventory position of £132.5 million at period-end and improved management creating growth capacity.
• Largely freehold property portfolio underpinning value, with property, plant and equipment assets totalling £114.6 million.
• Substantial time and resources required to replicate network and service levels, creating a significant barrier to entry.

Commitment to the highest levels of corporate responsibility and governance further reinforces the Investment Case, see Corporate Responsibility on page 38 and Corporate Governance on page 58 of the 2019 Annual Report.

^{All numbers given are for the financial year ended 31 December 2019 or as at 31 December 2019}