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.

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.

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