-0.50 p
Business directory

Investment case

Significant scale and longevity of operations underpinned by capital efficiency and progressive dividend policy.

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
  • 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
  • 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