Spreadsheet: 866810d1713730795-excel-table-to-word-document-book4
Sheet: Sheet1

S.NO | TEXT | PAGE | YEAR | WORD | CATEGORY | NEWS
1 | Our continuing mission is to deliver sustainable growth through a brand that drives customer specification of innovative product solutions for the Built Environment. | 1 | 2018 | Growth | sustainability | Good
2 | The self help programme to support organic growth is progressing well and we continue to outperform our peers and gain market share | 1 | 2018 | Growth | Growth | Good
3 | Continued progress has been made in the year to deliver our sustainable growth strategy | 2 | 2018 | Growth | sustainability | Good
4 | EBITDA growth continues alongside improved ROCE, strong cash flows and a strengthened brand | 2 | 2018 | Growth | Growth | Good
5 | Focus on innovation, new product development and service to drive sales growth | 2 | 2018 | Growth | Growth | Good
6 | Marshalls seeks to understand the long-term drivers of market and product growth | 4 | 2018 | Growth | Growth | Neutral
7 | Proven record of sustained growth with 5-year CAGR growth in revenue of 10 per cent and PBT of 37 per cent | 4 | 2018 | Growth | Growth | Good
8 | Wide market reach targeting growth areas including New Build Housing, Road, Rail and Water Management. | 4 | 2018 | Growth | Market | Good
9 | The acquisitions of both CPM and Edenhall will enable the Group to offer a broader product choice that complements our offering in targeted growth areas of Water Management and New Build Housing | 4 | 2018 | Growth | Diversification | Good
10 | This is my first report to you as your [NAME] and I am delighted to announce another year of growth, with both strong earnings and cash performance. | 6 | 2018 | Growth | Growth | Neutral
11 | The acquisition of Edenhall Holdings Limited (“Edenhall”) in December 2018 will support the Group’s focus on New Build Housing, which is one of our strategic growth areas. | 6 | 2018 | Growth | Diversification | Good
12 | Group revenue for the year increased by 14 per cent to £491.0 million (2017: £430.2 million). The Public Sector and Commercial end market performance was up 20 per cent during the year and growth in the Domestic end market was up 3 per cent. | has delegated responsibility from the Board to oversee risk management and internal controls; (AR & R p24, 2018) | 2018 | Growth | Financial performance | Good
13 | The payment of a discretionary supplementary dividend is in line with the Board’s objective of maintaining an efficient capital structure whilst retaining capacity to invest in further growth opportunities. | Basic earnings per share of 26.29 pence (2017: 21.52 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, (AR & R p103, 2018) | 2018 | Growth | Strategy | Good
14 | The 2020 Strategy has delivered strong profit growth and has been firmly aligned with the Group’s vision to “Create Better Spaces” for all our customers, socially, environmentally and economically. | 7 | 2018 | Growth | Strategy | Good
15 | The Group is now well advanced in mapping out its ambitions for the next 5 years, setting strategic objectives that continue to support long-term sustainable growth while also building further resilience | 7 | 2018 | Growth | Strategy | Good
16 | The Group delivered a strong result in 2018 and continues to outperform the Construction Products Association’s (“CPA”) growth figures, despite ongoing macro-economic and [NAME] uncertainty | 7 | 2018 | Growth | performance | Good
17 | The CPA’s recent Winter Forecast predicted a decrease in UK market volumes of 0.2 per cent in 2018, followed by an increase of 0.3 per cent in 2019. However, our recent trading has been strong and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive to our growth strategy and plans. | 7 | 2018 | Growth | Market | Neutral
18 | Good progress has been made during the year, notably the successful integration of CPM and the ongoing self help programme to drive organic growth and these have been enhanced by the acquisition of Edenhall. | 7 | 2018 | Growth | Progress | Good
19 | Revenue growth in the second half of the year was particularly strong at 17 per cent | 8 | 2018 | Growth | Growth | Good
20 | Whilst the first half of the year was particularly affected by the severe weather, revenue growth in the second half of the year was up 7 per cent against the prior period | 8 | 2018 | Growth | Growth | Neutral
21 | The strong performance of our Landscape Protection business in the second half of the year and the growth in the sustainable profitability of our emerging UK businesses remain key parts of the Group’s strategy. | 8 | 2018 | Growth | performance | Neutral
22 | The growth of protective security street furniture continues with strong focus on new product development and new target markets | 8 | 2018 | Growth | Market | Good
23 | Marshalls has made continued progress in developing the International business and its trading performance has improved in line with revenue growth | 8 | 2018 | Growth | performance | Good
24 | The Group’s proven strategy has continued to deliver strong profit growth in 2018 | 8 | 2018 | Growth | Strategy | Good
25 | The self help programme to support organic growth is progressing well, with continued focus on New Build Housing, Road, Rail and Water Management, where higher levels of growth are anticipated. | 8 | 2018 | Growth | Growth | Good
26 | Edenhall is a leading UK manufacturer and supplier of sustainable concrete products and the acquisition is in line with our stated strategy to complement our organic growth with targeted acquisitions | 8 | 2018 | Growth | Acquistion | Neutral
27 | We are currently developing our strategic plan for sustainable growth over the next 5 years and this will become the Group’s 2023 Strategy | 9 | 2018 | Growth | Strategy | Neutral
28 | We continue to identify a good pipeline of capital investment projects that will drive future organic growth | 9 | 2018 | Growth | Investment | Good
29 | In addition, increases in research and new product development expenditure continue to be made as part of our growth strategy. | 9 | 2018 | Growth | Innovation | Good
30 | We continue to explore bolt-on acquisitions within our targeted growth sectors of New Build Housing, Water Management, Landscape Protection and Minerals | 9 | 2018 | Growth | Acquistion | Neutral
31 | In the core Landscape Products business, the growth in revenue from new products continued strongly and new product sales represented 12 per cent of total revenue in 2018 | 9 | 2018 | Growth | Innovation | Good
32 | This new technology is generating increased sales, specifically in New Build Housing, which is one of our targeted growth areas. | 9 | 2018 | Growth | Technology | Good
33 | Self help capital expenditure is additional to ongoing replacement spend. It must be “value added”, targeting volume growth areas and cost reduction and efficiency opportunities. | 9 | 2018 | Growth | Investment | Neutral
34 | The joining of the two companies will add real value to our customers and accelerate the growth of Edenhall | 11 | 2018 | Growth | Acquistion | Good
35 | construction output is forecast to remain broadly flat (+0.3 per cent) in 2019 before growth of 1.6 per cent in 2020. | 12 | 2018 | Growth | Forecast | Bad
36 | However, this masks a considerable variation by sector, with growth in private housing, industrial warehouses and many parts of infrastructure offsetting falls in education, health and commercial activity | 12 | 2018 | Growth | Market | Neutral
37 | Maintain focus on the significant growth opportunities in the Greater London area – but also on further developing our strategic relationships with contractors, housebuilders and merchants across the UK. | 12 | 2018 | Growth | Strategy | Neutral
38 | The CPA forecasts that private housing starts will rise 2.0 per cent in 2019 and 1.0 per cent in 2020, as Help to Buy sustains growth outside London. | 12 | 2018 | Growth | Growth | Good
39 | Forecasts for the roads sub-sector show modest growth over the next 2 years, with activity split between smart motorways and traditional road construction. | 12 | 2018 | Growth | Forecast | Neutral
40 | Reinvestment in R&D and capital expenditure to drive sustainable growth | 15 | 2018 | Growth | Investment | Good
41 | We generate value for shareholders by delivering sustainable growth | 16 | 2018 | Growth | sustainability | Good
42 | To explain how we aim to deliver sustainable growth and maximise the growth potential of the business | 16 | 2018 | Growth | Strategy | Neutral
43 | To ensure promotion of staff development and personal growth | 16 | 2018 | Growth | Growth | Good
44 | To ensure that our business practices provide a solid foundation for sustainable growth | 17 | 2018 | Growth | sustainability | Good
45 | Make strategic investments for organic growth and acquisitions | 18 | 2018 | Growth | Investment | Neutral
46 | Deliver sustainable EPS and operating cash flow growth. | 18 | 2018 | Growth | sustainability | Good
47 | To deliver sustainable EPS growth. | 18 | 2018 | Growth | Growth | Good
48 | New product development to drive growth. | 18 | 2018 | Growth | Innovation | Good
49 | Growth in EBITDA of 19 per cent to £80.8 million | 18 | 2018 | Growth | Growth | Good
50 | 21 per cent growth in operating profit driven by sustainable efficiency improvements | 18 | 2018 | Growth | sustainability | Good
51 | Continuing to exceed CPA growth forecasts | 18 | 2018 | Growth | Forecast | Good
52 | To make strategic investments for organic growth and acquisitions | 18 | 2018 | Growth | Investment | Neutral
53 | Our strategic goal is to deliver sustainable growth in shareholder value whilst taking into consideration the interests of all our stakeholders and the wider contribution we make to society | 18 | 2018 | Growth | sustainability | Neutral
54 | To maintain efficient and effective business controls and to ensure that the capital structure remains aligned with the Group’s corporate growth objectives | 19 | 2018 | Growth | Efficiency | Good
55 | Target growth areas of New Build Housing, Road, Rail and Water Management | 19 | 2018 | Growth | Growth | Good
56 | Increase capital expenditure for organic growth. | 19 | 2018 | Growth | Investment | Good
57 | Revenue growth of 14 per cent to £491.0 million | 19 | 2018 | Growth | Growth | Good
58 | Significant growth in key focus areas whilst maintaining operational flexibility | 19 | 2018 | Growth | Growth | Good
59 | Strong growth in New Build Housing revenue. | 19 | 2018 | Growth | Growth | Good
60 | To invest in capital expenditure for organic growth | 19 | 2018 | Growth | Investment | Neutral
61 | Our 2020 strategy has been consistently followed during the last 3 years and has delivered strong growth. | 19 | 2018 | Growth | Strategy | Neutral
62 | The Group is now well advanced in mapping out its ambitions for the next 5 years, setting strategic objectives that continue to support long-term sustainable growth | 19 | 2018 | Growth | Strategy | Good
63 | Group revenue has increased by 14 per cent in 2018. Growth in Commercial revenue was particularly strong at 20 per cent. | 20 | 2018 | Growth | Growth | Good
64 | Sustainable revenue growth is the driver of EPS and operating cash flow (“OCF”) growth. | 20 | 2018 | Growth | sustainability | Good
65 | The Group continues to focus on strategic investment for both organic and acquisitive growth | 20 | 2018 | Growth | Investment | Neutral
66 | A detailed annual review of the Group’s capital structure has been undertaken to ensure it remains aligned with corporate growth objectives and takes full account of the increasing external political and economic uncertainty in the pre-Brexit risk environment | 23 | 2018 | Growth | Alignment | Neutral
67 | Marshalls has strong market positions and a strategy of targeting those market areas where growth prospects are greatest. | 24 | 2018 | Growth | Strategy | Good
68 | The Group continues to target those market areas where growth prospects are greatest, e.g. New Build Housing, Road, Rail and Water Management | 25 | 2018 | Growth | Market | Neutral
69 | The Group’s innovation cycle combines intelligence, innovation and delivery, and is a driver of growth. | 28 | 2018 | Growth | Innovation | Good
70 | Revenue for the year ended 31 December 2018 was £491.0 million (2017: £430.2 million), which represented an increase of 14 per cent. Revenue growth in the second half of the year was particularly strong at 17 per cent. | 29 | 2018 | Growth | Growth | Good
71 | Sales growth in the second half of the year has been strong and revenue was up 22 per cent | 30 | 2018 | Growth | Growth | Good
72 | New Build Housing is a strategic growth area for [NAME] and the acquisition of Edenhall on 11 December 2018 provides a significant extension of the product range. | 30 | 2018 | Growth | Expansion | Good
73 | A new factory in South Wales is to be commissioned in Spring 2019 to increase capacity and drive growth. | 30 | 2018 | Growth | Expansion | Good
74 | Recent growth has been supported by an expansion in production capabilities following the commissioning of a new factory at Mells, in Somerset. | 31 | 2018 | Growth | Expansion | Good
75 | Those businesses that are not large enough to comprise separate operating segments include Street Furniture and Mineral Products and they continue to be a key strategic focus and a positive driver for growth. Marshalls plc Annual Report and Accounts 2018 | 31 | 2018 | Growth | Strategy | Good
76 | The Group has a strong balance sheet with a good range of medium-term bank facilities available to fund investment initiatives to generate growth. | 32 | 2018 | Growth | Strength | Good
77 | Cash outflow on capital expenditure in the year was £29.2 million (2017: £20.7 million). This included self help growth expenditure of £17.0 million and the replacement of existing assets, business improvements and new process technology. Dividend payments in the year were £29.2 million (2017: £24.1 million). | 33 | 2018 | Growth | Expenditure | Neutral
78 | The Group has invested £63.8 million back into the business to generate growth, improve productivity and provide industry leading manufacturing facilities. | 33 | 2018 | Growth | Investment | Good
79 | Our focus on doing business responsibly provides the solid foundations required for sustainable growth | 35 | 2018 | Growth | sustainability | Good
80 | I strongly believe that good governance is a core component of corporate success, and that a well-managed governance structure provides real value in shaping the culture of the Group and driving sustainable growth. | 38 | 2018 | Growth | Governance | Good
81 | A well-managed governance structure provides real value in shaping the culture of the Group and driving sustainable growth | 38 | 2018 | Growth | Governance | Good
82 | The focus on customer experience, stakeholder engagement and digital and technological advancement should enable the Group to deliver further strategic growth over the medium term. | 38 | 2018 | Growth | Strategy | Good
83 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving increased profitable growth in accordance with the Company strategy. | 56 | 2018 | Growth | Strategy | Neutral
84 | The customer metric and health and safety performance conditions reflect our commitment to service and employee wellbeing and the need to ensure that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees | 56 | 2018 | Growth | Health and safety | Good
85 | we have separated out their original value on grant and the additional value generated due to share price growth over the vesting period | 57 | 2018 | Growth | performance | Neutral
86 | The increase in the value of awards due to share price growth over the vesting periods is another demonstration of how our Policy aligns with strategy and the interests of shareholders | 57 | 2018 | Growth | Alignment | Good
87 | These calculations use cash flow projections based on a combination of individual financial 3-year forecasts, containing assumptions for revenue growth and operational gearing, and appropriate long-term growth rates of 2.45 per cent. | 107 | 2018 | Growth | Forecast | Neutral
88 | Focus on increasing profitability of the emerging UK businesses continues | 2 | 2018 | Profit | Financial performance | Good
89 | Revenue up 14% to £491.0 million (2017: £430.2 million) | 3 | 2018 | Profit | Growth | Good
90 | Profit before tax increased by 21 per cent to £62.9 million (2017: £52.1 million). | 6 | 2018 | Profit | Financial performance | Good
91 | 2018 has been another year of good profit growth | 6 | 2018 | Profit | Growth | Good
92 | The 2020 Strategy has delivered strong profit growth and has been firmly aligned with the Group’s vision to “Create Better Spaces” for all our customers, socially, environmentally and economically | 6 | 2018 | Profit | Strategy | Good
93 | The strong performance of our Landscape Protection business in the second half of the year and the growth in the sustainable profitability of our emerging UK businesses remain key parts of the Group’s strategy. | 8 | 2018 | Profit | sustainability | Good
94 | Profit before tax increased by 21 per cent to £62.9 million (2017: £52.1 million) | 8 | 2018 | Profit | Financial performance | Good
95 | Profit before tax up 21% to £62.9 million | 8 | 2018 | Profit | Financial performance | Good
96 | The Group’s proven strategy has continued to deliver strong profit growth in 2018. | 8 | 2018 | Profit | Growth | Good
97 | The Group has delivered an operating profit in 2018 of £64.8 million (2017: £53.4 million), an increase of 21 per cent. | 8 | 2018 | Profit | Financial performance | Good
98 | Edenhall is a profitable business with a strong track record of quality, reliability and service | 11 | 2018 | Profit | Financial performance | Good
99 | To maintain a strong market position and grow the business profitability in all of the Group’s end markets | 18 | 2018 | Profit | Financial performance | Neutral
100 | 21 per cent growth in operating profit driven by sustainable efficiency improvements | 18 | 2018 | Profit | Efficiency | Good
101 | Increase in operating profit percentage to 13.2 per cent (2017: 12.4 per cent). | 18 | 2018 | Profit | Financial performance | Good
102 | To increase sustainable profitability in the smaller UK and International businesses | 19 | 2018 | Profit | sustainability | Good
103 | The delivery of long-term sustainable profitability for shareholders is a strategic priority | 20 | 2018 | Profit | Strategy | Neutral
104 | The sustainable improvement in profitability is a strategic priority | 20 | 2018 | Profit | sustainability | Good
105 | Operating profit has increased by 21 per cent to £64.8 million in 2018 | 20 | 2018 | Profit | Financial performance | Good
106 | Sustainable improvement in profitability | 20 | 2018 | Profit | Financial performance | Good
107 | ROCE provides the control and balance between the profit and cash flow performance targets | 20 | 2018 | Profit | Control | Good
108 | Operating profit was £64.8 million (2017: £53.4 million), which represents an increase of 21 per cent | 31 | 2018 | Profit | Financial performance | Good
109 | operating profit grew by £8.1 million in the Landscape Products business. | 31 | 2018 | Profit | Financial performance | Good
110 | Successful integration of acquisition with positive profit impact | 42 | 2018 | Profit | Acquistion | Good
111 | EPS relates to our strategic objective to grow profits. EPS grew by 22 per cent to 26.29 pence in 2018 | 56 | 2018 | Profit | Financial performance | Good
112 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving increased profitable growth in accordance with the Company strategy | 56 | 2018 | Profit | Strategy | Neutral
113 | The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its sustainability. | 56 | 2018 | Profit | sustainability | Good
114 | The customer metric and health and safety performance conditions reflect our commitment to service and employee wellbeing and the need to ensure that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees | 56 | 2018 | Profit | Commitment | Good
115 | It is the view of the Committee that the targets for the MIP are commercially sensitive as they are primarily related to budgeted future profit and cash levels in the Company and therefore their disclosure in advance is not in the interests of the Company or shareholders. | 61 | 2018 | Profit | Confidential | Neutral
116 | Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of their profit or loss for that period. | 75 | 2018 | Profit | Compliance | Good
117 | the Financial Statements of Marshalls plc (the “Parent Company”) and its subsidiaries (the “Group”) give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2018 and of the Group’s profit for the year then ended; | 77 | 2018 | Profit | Reporting | Neutral
118 | The materiality that we used for the Group Financial Statements was £3.1 million which was determined on the basis of 5 per cent of profit before tax. | 77 | 2018 | Profit | Audit | Neutral
119 | This accounts for 96 per cent of group revenue, 96 per cent of group net assets and 98 per cent of profit before tax. | 77 | 2018 | Profit | Financial performance | Good
120 | In our professional judgement, profit before tax is the principal benchmark within the Financial Statements that is relevant to users of the Financial Statements when assessing performance | 80 | 2018 | Profit | performance | Neutral
121 | The UK components, excluding the Edenhall Group, accounted for 96 per cent (2017: 95 per cent) of Group revenue, 96 per cent (2017: 99 per cent) of Group net assets and 98 per cent (2017: 100 per cent) of Group profit before tax. | 81 | 2018 | Profit | Financial performance | Neutral
122 | Income tax on the profit or loss for the year comprises current and deferred taxation | 98 | 2018 | Profit | Taxation | Neutral
123 | Segment profit represents the profit earned without allocation of certain central administration costs that are not capable of allocation | 100 | 2018 | Profit | Segment | Neutral
124 | The majority of the Group’s profits are earned in the UK with the standard rate of corporation tax being 19.0 per cent for the year to 31 December 2018 | 103 | 2018 | Profit | Taxation | Neutral
125 | The different accounting treatment of fixed assets for tax and accounting purposes is one reason why the taxable income of the Group is not the same as its accounting profit | 103 | 2018 | Profit | Taxation | Bad
126 | The Group’s overseas operations comprise a manufacturing operation in Belgium and sales and administration offices in the USA, China and Dubai. The sales of these units, in total, were less than 5 per cent of the Group’s turnover in the year ended 31 December 2018. In total, the trading profits were not material and no tax was due. | 103 | 2018 | Profit | Audit | Neutral
127 | Basic earnings per share of 26.29 pence (2017: 21.52 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, | 103 | 2018 | Profit | Dividend | Good
128 | The Group holds and uses financial instruments to finance its operations and to manage its interest rate, liquidity and currency risks. The Group primarily finances its operations using share capital, retained profits and borrowings. | 109 | 2018 | Profit | Financing | Good
129 | Edenhall Holdings Limited contributed revenue of £675,000 and profit of £4,000 to the Group’s profit for the period between the date of acquisition and 31 December 2018 | 121 | 2018 | Profit | Growth | Neutral
130 | If the acquisition of Edenhall Holdings Limited had been completed on the first day of the financial year, Group revenue for the period would have been £524,165,000 and Group profit before tax would have been £64,643,000 | 121 | 2018 | Profit | Forecast | Good
131 | Dividends thereon are recognised in the profit and loss account as a financial expense | 126 | 2018 | Profit | Dividend | Good
132 | Income tax on the profit or loss for the year comprises current and deferred taxation | 127 | 2018 | Profit | Taxation | Neutral
133 | A deferred taxation asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised | 127 | 2018 | Profit | Asset | Neutral
134 | The achievement of annual health and safety improvement targets is directly linked to the remuneration of the Executive Directors and senior management | 9 | 2018 | remuneration | Health and safety | Good
135 | The achievement of annual health and safety improvement targets is directly linked to the remuneration of the Executive Directors and senior management, as explained in the Remuneration Report | 37 | 2018 | remuneration | Health and safety | Good
136 | This year we have expanded our Remuneration Committee Report to add more information on our wider workforce pay conditions, our CEO to employee pay ratio, our gender pay statistics and our diversity initiatives. | 38 | 2018 | remuneration | Transparency | Good
137 | Our Remuneration Policy was approved by shareholders in 2017 and it will be reviewed again in 2020. | 39 | 2018 | remuneration | Policy | Good
138 | Group and we encourage opportunities for share ownership. We aim to achieve clarity, simplicity and proportionality in our remuneration policies and procedures, and we were particularly pleased that Marshalls’ 2017 Remuneration Report won a “Building Public Trust” award for transparency in corporate reporting during 2018 | 39 | 2018 | remuneration | Transparency | Good
139 | Senior Independent Non-Executive Director and Chair of the Remuneration Committee of Bunzl plc. Non-Executive Director of Redrow plc. | 40 | 2018 | remuneration | Directorship | Neutral
140 | Director of the Mineral Products Association. Non-Executive Director and Chair of Remuneration Committee at Eurocell plc | 40 | 2018 | remuneration | Directorship | Neutral
141 | Non-Executive Director and Chair of Remuneration Committee of SIG plc and Victrex plc. | 40 | 2018 | remuneration | Directorship | Neutral
142 | The Board recognises that we are accountable to shareholders for good corporate governance, and this report, together with the Reports of the Audit, Nomination and Remuneration Committees | 42 | 2018 | remuneration | Governance | Neutral
143 | The Remuneration Report contains details of our gender ratios and gender pay gap data, and this, together with the Nomination Committee Report | 43 | 2018 | remuneration | Diversity | Neutral
144 | The Board delegates specific responsibilities to the Audit, Remuneration and Nomination Committees. | 44 | 2018 | remuneration | Delegation | Neutral
145 | The Remuneration Report explains how the Group’s Remuneration Policy has been implemented, and shows Directors’ remuneration for 2018. | 44 | 2018 | remuneration | Remuneration | Neutral
146 | The Remuneration Report also provides gender pay and balance information. | 44 | 2018 | remuneration | Diversity | Neutral
147 | Chairs of Committees would expect to meet shareholders to consult on significant matters related to their areas of responsibility, for example in relation to preparation of the Group’s 2020 Remuneration Policy. | 47 | 2018 | remuneration | Engagement | Good
148 | All Directors normally attend the meeting, including the Audit, Remuneration and Nomination Committee Chairs, who are available to answer questions. | 47 | 2018 | remuneration | Attendance | Neutral
149 | Review of current Remuneration Policy and its application for 2019 to ensure it remains appropriate | 53 | 2018 | remuneration | Policy | Good
150 | Executive Director remuneration packages for 2019 set, having taken into account the pay and benefits of the wider workforce and the comparator group, and review extended to senior management remuneration below Board level | 53 | 2018 | remuneration | Remuneration | Neutral
151 | Monitor the success of the 2019 action plan for engagement with employees and other stakeholders on remuneration | 53 | 2018 | remuneration | Engagement | Neutral
152 | Seek shareholder approval to extend the Management Incentive Plan to 2020 to align the incentive plan with the Remuneration Policy under which it operates, and which is due to be tabled for shareholder approval at the 2020 AGM | 53 | 2018 | remuneration | Policy | Neutral
153 | This report is divided into two: an introduction and at a glance “summary” of our activities and our Annual Remuneration Report, showing how our Policy was applied during the year and outcomes for our executives | 54 | 2018 | remuneration | Policy | Good
154 | The consideration of performance against non-financial ESG measures is integrated into our review of overall remuneration. | 54 | 2018 | remuneration | sustainability | Good
155 | In making decisions on executive pay, the Remuneration Committee considers wider workforce remuneration and conditions. | 54 | 2018 | remuneration | Decision making | Good
156 | We have considered the current compliance of our Remuneration Policy and its application with the 2018 Code which applies for financial years beginning on or after 1 January 2019. | 54 | 2018 | remuneration | Compliance | Good
157 | Remuneration Policy received 96 per cent shareholder support. | 54 | 2018 | remuneration | Policy | Good
158 | As Remuneration Committee Chair I remain willing to engage with shareholders on remuneration matters, and will be arranging, with [NAME], to meet and consult with our major shareholders prior to the Policy review in 2020 | 54 | 2018 | remuneration | Engagement | Good
159 | The Company re-appointed external remuneration advisers PricewaterhouseCoopers LLP (“PwC”) after a tender process in 2017 | 55 | 2018 | remuneration | Appointment | Neutral
160 | PwC attends meetings of the Committee by invitation. The Chief Executive attends as appropriate but may not participate in discussions about his own remuneration. | 55 | 2018 | remuneration | Attendance | Neutral
161 | PwC’s fees are agreed by the Remuneration Committee according to the work performed. | 55 | 2018 | remuneration | Audit Fees | Neutral
162 | The Committee is satisfied that the advice from PwC is independent based on the separation of the team advising the Committee from any other work undertaken by PwC and the fact that PwC is a signatory to the Remuneration Consultants Group’s Code of Conduct. | 55 | 2018 | remuneration | Independence | Good
163 | PwC’s work relating to Executive remuneration during 2018 included assistance in the preparation of the 2018 Remuneration Committee Report benchmarking of total remuneration in respect of the Company and its comparator group, and general advice on remuneration trends, regulations and best practice. | 55 | 2018 | remuneration | Assistance | Good
164 | Our Remuneration Report has been prepared in accordance with the Companies Act 2008 and Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 | 55 | 2018 | remuneration | Compliance | Neutral
165 | 94.25 per cent of shareholders voted in favour of the Remuneration Report at the Company’s 2018 AGM. | 55 | 2018 | remuneration | Voting | Good
166 | The Remuneration Policy received a vote of 96 per cent in favour at the 2017 AGM, and a new Policy will be submitted to shareholders again at the 2020 AGM. | 55 | 2018 | remuneration | Voting | Good
167 | It is the Committee’s view that one of the key objectives of equity-based remuneration is to align Executives’ interests and those of shareholders | 57 | 2018 | remuneration | Alignment | Good
168 | It is the Committee’s view that it is important when considering the remuneration paid in the year under the single figure to take a holistic view of the Director’s total reward linked to the performance of the Company | 58 | 2018 | remuneration | Remuneration | Good
169 | The ability for the Directors to gain and lose, dependent on the share price performance of the Company, at a level which is material to their total remuneration is a key facet of the Company’s Remuneration Policy. | 58 | 2018 | remuneration | Alignment | Good
170 | The Company’s policy is to target a remuneration package that is at around median for median performance, and in the upper quartile for exceptional performance, and which is closely linked with the Company’s strategic objectives. | 59 | 2018 | remuneration | Remuneration | Neutral
171 | In setting all elements of remuneration the Company seeks to benchmark itself against comparable companies | 59 | 2018 | remuneration | Comparison | Neutral
172 | The aim of the Company’s policy is to attract, retain and continue to motivate talented employees while aligning remuneration with the achievement of the Company’s strategic objectives | 59 | 2018 | remuneration | Alignment | Good
173 | The Company’s performance-based remuneration framework is linked to the implementation of the Company’s strategy | 59 | 2018 | remuneration | performance | Good
174 | The focus on long-term sustainable performance and share participation is a key part of the Company’s culture. This is supported by the Remuneration Policy | 59 | 2018 | remuneration | Long term | Good
175 | the Committee’s approach to the review of wider workforce pay policies and whether the approach to Executive remuneration is consistent; | 62 | 2018 | remuneration | Consistency | Neutral
176 | comparison metrics relating to executive and employee remuneration | 62 | 2018 | remuneration | Comparison | Neutral
177 | Clearly the levels of remuneration and the packages offered will vary across the Company depending on the employee’s level of seniority and role. | 63 | 2018 | remuneration | Remuneration | Neutral
178 | Once the Committee has conducted its review of the wider workforce remuneration and incentives it considers the approach applied to the remuneration of the Executive Directors and senior management. In particular, the Committee is focused on whether within the framework set out above, the approach to the remuneration of the Executive Directors and senior management is consistent with that applied to the wider workforce | 63 | 2018 | remuneration | Consistency | Neutral
179 | In summary the Committee is satisfied that the approach to remuneration across the Company is consistent with the Company’s principles of remuneration. Further, in the Committee’s opinion the approach to Executive remuneration aligns with wider Company pay policy and there are no anomalies specific to the Executive Directors. | 63 | 2018 | remuneration | Alignment | Good
180 | The Remuneration Committee has always been committed to ensuring that CEO reward is commensurate with performance. | 64 | 2018 | remuneration | Performance | Neutral
181 | It is this element of the package which provides the volatility in CEO remuneration and the variations in the ratio | 64 | 2018 | remuneration | Remuneration | Good
182 | The Committee is satisfied that the underlying picture does not show a divergence trend between the CEO remuneration and employees generally, i.e. excluding share price volatility, the relationship with employee pay is consistent. | 64 | 2018 | remuneration | Consistency | Good
183 | Where the base structure of remuneration is similar, for example between the Executive Committee and the CEO, the ratio is much more stable over time | 65 | 2018 | remuneration | Stability | Neutral
184 | The Remuneration Committee Chair’s engagement programme will support the initiatives in our action plan to eliminate unconscious bias, if it is found, and to ensure our pay and performance policies are fair and transparent with measures to encourage applications from talented and motivated individuals regardless of gender, ethnicity, degree of physical ability or background. | 68 | 2018 | remuneration | Engagement | Good
185 | Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that comply with that law and those regulations | 74 | 2018 | remuneration | Compliance | Neutral
186 | Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of in respect of these matters. Directors’ remuneration have not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting records and returns. | 83 | 2018 | remuneration | Compliance | Neutral
187 | There are no Directors to whom retirement benefits are accruing in respect of qualifying services. As set out in the Annual Remuneration Report on page 69, the Executive Directors receive a salary supplement in lieu of pension equal to their contractual entitlement of 20 per cent of basic salary | 102 | 2018 | remuneration | Pension | Neutral
188 | In addition to their salaries and pension allowances, the Group also provides non-cash benefits to Directors. Further details in relation to Directors are disclosed in the Annual Remuneration Report | 123 | 2018 | remuneration | Remuneration | Good
189 | Our objective is to deliver sustainable growth, whilst maintaining a strong balance sheet with a flexible capital structure and a clear capital allocation policy. | 1 | 2019 | growth | Strategy | Good
190 | Revenue growth of 10% to £541.8 million (2018: £491.0 million) | 2 | 2019 | growth | Growth | Good
191 | Our Continuing Mission is to Deliver Sustainable Growth through a Brand that Drives Customer Specification of Innovative Product Solutions for the Built Environment. | 3 | 2019 | growth | Growth | Good
192 | Proven record of sustained growth with 5-year CAGR growth in revenue of 9 per cent and PBT of 26 per cent. | 5 | 2019 | growth | Growth | Good
193 | Wide market reach targeting growth areas including New Build Housing, Road, Rail and Water Management. | 5 | 2019 | growth | Expansion | Good
194 | The business is now integrated into the Group and, given the great opportunity concrete bricks represent in the future, it has significant growth potential. | 6 | 2019 | growth | Growth | Neutral
195 | Revenue growth of 10% despite challenging market conditions | 6 | 2019 | growth | Growth | Good
196 | The Group has delivered further growth in 2019 despite a period of market slowdown and economic and political uncertainty. | 7 | 2019 | growth | Growth | Good
197 | The Board believes that the Group’s new 5 year Strategy will continue to deliver sustainable growth, whilst maintaining a strong balance sheet and a flexible capital structure. | 7 | 2019 | growth | Strategy | Good
198 | 2019 has seen further growth despite a period of market slowdown | 8 | 2019 | growth | Growth | Good
199 | The Group’s long-term strategy continues to deliver sustainable growth | 8 | 2019 | growth | Strategy | Good
200 | We have delivered further growth and continue to outperform the market | 8 | 2019 | growth | Growth | Good
201 | The Group has delivered further growth in 2019 despite a period of market slowdown and economic and political uncertainty. | 8 | 2019 | growth | Growth | Good
202 | We continue to generate a good pipeline of capital investment projects that will drive future organic growth. | 9 | 2019 | growth | Investment | Good
203 | In the core Landscape Products business, the growth in revenue from new products continued strongly, increasing by 9 per cent during 2019. | 9 | 2019 | growth | Growth | Good
204 | As part of our ongoing digital strategy we are currently integrating artificial intelligence into key business systems in order to create a new artificial intelligence infrastructure that will facilitate the delivery of further growth and efficiency benefits. | 9 | 2019 | growth | Innovation | Good
205 | In June 2019 we set out our new 5 year Strategy, following the successful execution of our 2020 strategy, launched in 2015 to deliver sustainable growth, increase operating margins and improve ROCE | 9 | 2019 | growth | Strategy | Neutral
206 | The Group’s long-term strategy continues to be to deliver sustainable growth with a continued emphasis on organic growth, investment and ESG initiatives. | 9 | 2019 | growth | Strategy | Neutral
207 | The strategy continues to focus on the maintenance of a strong balance sheet, a flexible capital structure and a clear capital allocation policy. These objectives drive both long-term growth and shareholder returns. | 9 | 2019 | growth | Strategy | Good
208 | Our new 5 year Strategy lays the foundation for delivering further growth | 10 | 2019 | growth | Strategy | Good
209 | At the heart of the strategy are 8 priority areas for investment and business focus. We believe that these areas provide significant growth potential for the Group over the next 5 years. | 10 | 2019 | growth | Investment | Good
210 | We have seen 5 years of good growth and the delivery of our successful 2020 Strategy. We have also made significant progress in positioning the business for future growth. | 10 | 2019 | growth | Progress | Good
211 | We will continue to invest heavily in the business and to accelerate growth over the medium term. We will continue to challenge ourselves to be better, faster, smarter, more efficient, cost effective and innovative in order to challenge the market. | 10 | 2019 | growth | Investment | Good
212 | we are well placed to deliver continued growth and operational profit improvements. | 10 | 2019 | growth | Growth | Neutral
213 | The recent period of sustained growth has been supported by real changes in the business, its operational processes and controls. | 11 | 2019 | growth | Growth | Good
214 | Our investments in digital and operational efficiency programmes mean that we are now in the best possible position to benefit from future market growth. | 11 | 2019 | growth | Investment | Good
215 | The Group continues to outperform the CPA’s growth forecasts | 14 | 2019 | growth | performance | Good
216 | construction output will fall by 0.3 per cent in 2020 before returning to growth of 1.2 per cent in 2021 | 14 | 2019 | growth | Forecast | Neutral
217 | Against this background, Marshalls continues to target those areas of the market with the greatest growth potential and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive | 14 | 2019 | growth | Strategy | Good
218 | New housing and infrastructure are key sectors for Marshalls’ Public Sector and Commercial business – the chart highlights continued growth in these areas | 14 | 2019 | growth | Growth | Good
219 | Detailed analysis means we understand the long-term drivers of market growth | 14 | 2019 | growth | Long term | Good
220 | We target individual market sectors – those with sustainable growth | 14 | 2019 | growth | sustainability | Good
221 | New Build Housing is a key strategic growth area | 15 | 2019 | growth | Strategy | Good
222 | Public housing starts have been affected by a recent slowdown in the wider market but a return to growth of 2 per cent is forecast in 2021 | 15 | 2019 | growth | Market | Bad
223 | Water Management, Road and Rail are key strategic growth areas | 15 | 2019 | growth | Strategy | Neutral
224 | We focus on our network of approved domestic installers to drive growth | 15 | 2019 | growth | Growth | Neutral
225 | Housing starts are expected to return to growth in 2021 with support from the second phase of Help to Buy | 15 | 2019 | growth | Growth | Neutral
226 | Reinvestment in R&D and capital expenditure to drive sustainable growth | 17 | 2019 | growth | Investment | Neutral
227 | To explain how we aim to deliver sustainable growth and maximise the growth potential of the business | 18 | 2019 | growth | sustainability | Neutral
228 | We generate value for shareholders by delivering sustainable growth | 18 | 2019 | growth | sustainability | Good
229 | To ensure that our business practices provide a solid foundation for sustainable growth | 19 | 2019 | growth | sustainability | Good
230 | Responsible business provides the foundations for sustainable growth | 19 | 2019 | growth | sustainability | Good
231 | To ensure that the capital structure remains aligned with the Group’s corporate growth objectives | 20 | 2019 | growth | Alignment | Good
232 | Growth in EBITDA of 12 per cent to £90.1 million on a pre-IFRS 16 basis | 20 | 2019 | growth | Growth | Good
233 | Dividend growth of 15 per cent | 20 | 2019 | growth | Dividend | Good
234 | Revenue growth of 10 per cent to £541.8 million. | 20 | 2019 | growth | Revenue | Good
235 | Strong growth in New Build Housing revenue | 20 | 2019 | growth | Revenue | Good
236 | 12 per cent growth in operating profit (pre-IFRS 16 basis) driven by sustainable efficiency improvements | 20 | 2019 | growth | sustainability | Good
237 | Continuing to exceed CPA growth forecasts. | 20 | 2019 | growth | Forecast | Good
238 | To make strategic investments for organic growth and acquisitions. | 20 | 2019 | growth | Acquistion | Neutral
239 | To target growth areas such as New Build Housing, Road, Rail and Water Management | 20 | 2019 | growth | Focus | Neutral
240 | To invest in capital expenditure for organic growth. | 20 | 2019 | growth | Investment | Neutral
241 | To focus on new product development to drive growth | 21 | 2019 | growth | Focus | Neutral
242 | To grow our emerging businesses to help us expand into key growth areas. | 21 | 2019 | growth | Growth | Neutral
243 | We believe that these areas provide significant growth potential for the Group over the next 5 years | 21 | 2019 | growth | Growth | Neutral
244 | Delivering growth is key to the Group’s strategy. | 22 | 2019 | growth | Strategy | Good
245 | Growth in Public Sector and Commercial revenue was particularly strong at 15 per cent | 22 | 2019 | growth | Growth | Good
246 | EPS growth is a strategic target. | 22 | 2019 | growth | Strategy | Good
247 | The Group continues to target those market areas where growth prospects are greatest, e.g. New Build Housing, Road, Rail and Water Management. | 26 | 2019 | growth | Market | Good
248 | The Group continues to target those market areas where growth prospects are greatest, e.g. New Build Housing, Road, Rail and Water Management. | 26 | 2019 | growth | Market | Good
249 | Recent growth has been supported by an expansion in production capabilities following the completion of a new £6 million factory in South Wales. | 32 | 2019 | growth | Expansion | Good
250 | The table illustrates the impact of operational gearing in the core business and shows that growth has continued to be ahead of CPA forecasts. | 32 | 2019 | growth | Growth | Good
251 | Mineral Products and they continue to be a key strategic focus and a positive driver for growth. | 32 | 2019 | growth | Strategy | Good
252 | The Group has invested £72.8 million back into the business to generate growth, improve productivity and provide industry leading manufacturing facilities | 33 | 2019 | growth | Investment | Good
253 | Cash outflow on capital expenditure in the year was £22.9 million (2018: £29.2 million). This included self help growth expenditure of £9.0 million and the replacement of existing assets, business improvements and new process technology | 33 | 2019 | growth | Expenditure | Neutral
254 | Capital investment in growth projects. Plan £20m in 2020 | 34 | 2019 | growth | Investment | Good
255 | The Group has a strong balance sheet with a good range of medium-term bank facilities available to fund investment initiatives to generate growth | 35 | 2019 | growth | Strength | Good
256 | Marshalls has delivered the 2020 Strategy successfully. This has been fuelled by profit growth accompanied by strong cash flow management, | 35 | 2019 | growth | Strategy | Good
257 | Doing business responsibly provides the foundations for sustainable growth | 35 | 2019 | growth | sustainability | Good
258 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving increased profitable growth in accordance with the Company strategy. | 59 | 2019 | growth | Strategy | Neutral
259 | The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability | 59 | 2019 | growth | Growth | Neutral
260 | The customer metric and health and safety performance conditions reflect our commitment to service and employee wellbeing and the need to ensure that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees nor in a way that promotes short-term, high risk behaviour. | 59 | 2019 | growth | Governance | Good
261 | we have separated out their original value on grant and the additional value generated due to share price growth over the vesting period | 60 | 2019 | growth | Growth | Neutral
262 | The increase in the value of awards due to share price growth over the vesting periods is another demonstration of how our Policy aligns with strategy and the interests of shareholders. | 60 | 2019 | growth | Growth | Neutral
263 | Management uses like-for-like revenue growth as it provides a consistent measure of the percentage increase / decrease in revenue year on year, excluding the effect of acquisitions | 113 | 2019 | growth | Growth | Neutral
264 | The long-term growth rate assumption reflects the long-term average growth rate for the UK economy. | 122 | 2019 | growth | Growth | Neutral
265 | Profit before tax up 11% to £69.9 million (2018: £62.9 million) on a reported basis | 2 | 2019 | Profit | Financial performance | Good
266 | The last year has seen record revenue, profit and market capitalisation and the Group continues to outperform the construction market. | 6 | 2019 | Profit | Financial performance | Good
267 | Profit before tax, on a reported post-IFRS 16 basis, was £69.9 million | 6 | 2019 | Profit | Financial performance | Good
268 | Operating profit increased by 12% to £72.6 million on a pre-IFRS 16 basis (£73.7 million on a reported basis) | 8 | 2019 | Profit | Financial performance | Good
269 | Reported operating profit increased to £73.7 million (2018: £64.8 million). | 9 | 2019 | Profit | Financial performance | Good
270 | The impact of IFRS 16, which has been applied since 1 January 2019, has been to increase operating profit by £1.1 million. | 9 | 2019 | Profit | Financial performance | Good
271 | The impact on the Income Statement of transitioning to IFRS 16 has been marginal, with reported profit before tax of £69.9 million | 9 | 2019 | Profit | Financial performance | Good
272 | Management remain attractive markets and we are well placed to deliver continued growth and operational profit improvements | 10 | 2019 | Profit | Market | Good
273 | To maintain a strong market position and grow the business’ profitability in all of the Group’s end markets | 20 | 2019 | Profit | Market | Good
274 | 12 per cent growth in operating profit (pre-IFRS 16 basis) driven by sustainable efficiency improvements. | 20 | 2019 | Profit | Efficiency | Good
275 | Increase in operating profit percentage to 13.4 per cent (2018: 13.2 per cent). | 20 | 2019 | Profit | Financial performance | Good
276 | To increase sustainable profitability in the emerging businesses | 20 | 2019 | Profit | Financial performance | Good
277 | Sustainable improvement in profitability is a strategic priority | 22 | 2019 | Profit | Strategy | Neutral
278 | Operating profit has increased £72.6 million (pre-IFRS 16) in 2019 with operating margin increasing to 13.4 per cent | 22 | 2019 | Profit | Financial performance | Good
279 | Reduction in revenue and profitability | 22 | 2019 | Profit | Financial performance | Bad
280 | Operating profit up 12% to £72.6 million (on a pre-IFRS 16 basis) and £73.7 million on a reported basis | 31 | 2019 | Profit | Financial performance | Good
281 | Reported operating profit increased to £73.7 million (2018: £64.8 million). | 32 | 2019 | Profit | Financial performance | Good
282 | The impact of IFRS 16, which has been applied since 1 January 2019, has been to increase operating profit by £1.1 million. | 32 | 2019 | Profit | Financial performance | Good
283 | Revenue increased by £15.2 million and operating profit grew by £2.5 million in the Landscape Products business | 32 | 2019 | Profit | Financial performance | Good
284 | Consequently, on a reported basis, there has been an increase in operating profit of £1.1 million and a reduction in profit before tax of £0.2 million. | 33 | 2019 | Profit | Financial performance | Good
285 | Marshalls has delivered the 2020 Strategy successfully. This has been fuelled by profit growth accompanied by strong cash flow management, which has led to a continuous improvement in ROCE | 35 | 2019 | Profit | Strategy | Good
286 | The Group has made a number of successful acquisitions, improving all of its key performance measures including market capitalisation (increasing by around two-thirds over the last year), turnover and profit. | 57 | 2019 | Profit | Acquistion | Good
287 | EPS relates to our strategic objective to grow profits. | 58 | 2019 | Profit | Financial performance | Good
288 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving increased profitable growth in accordance with the Company strategy | 59 | 2019 | Profit | Strategy | Neutral
289 | The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability. | 59 | 2019 | Profit | Growth | Good
290 | The customer metric and health and safety performance conditions reflect our commitment to service and employee wellbeing and the need to ensure that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees nor in a way that promotes short-term, high risk behaviou | 59 | 2019 | Profit | Governance | Good
291 | It is the view of the Committee that the targets for the MIP are commercially sensitive as they are primarily related to budgeted future profit and cash levels in the Company and therefore their disclosure in advance is not in the interests of the Company or shareholders. | 63 | 2019 | Profit | Transparency | Neutral
292 | The materiality that we used for the Group Financial Statements was £3.5 million which was determined on the basis of 5 per cent of profit before tax. | 91 | 2019 | Profit | Audit | Neutral
293 | Full scope audits were performed on all UK components. This accounts for 96 per cent of Group revenue, 100 per cent of Group net assets and 100 per cent of profit before tax generated by profit making entities. | 91 | 2019 | Profit | Audit | Good
294 | In our professional judgement, profit before tax is the principal benchmark within the Financial Statements that is relevant to users of the Financial Statements when assessing performance of the Group | 94 | 2019 | Profit | Benchmarking | Neutral
295 | Group revenue, 100 per cent (2018: 99 per cent) of Group net assets and 100 per cent (2018: 100 per cent) of Group profit before tax generated by profit making entities. | 94 | 2019 | Profit | Financial performance | Good
296 | In the current year we have taken controls reliance over the revenue and customer rebates business cycles as these are key accounts that impact the Group profit. | 95 | 2019 | Profit | Control | Neutral
297 | Income tax on the profit or loss for the year comprises current and deferred taxation | 113 | 2019 | Profit | Taxation | Neutral
298 | A deferred taxation asset is recognised only to the extent that it is probable that future taxable profits | 113 | 2019 | Profit | Taxation | Neutral
299 | Segment profit represents the profit earned without allocation of certain central administration costs that are not capable of allocation. | 115 | 2019 | Profit | Segment | Neutral
300 | The majority of the Group’s profits are earned in the UK with the standard rate of corporation tax being 19 per cent for the year to 31 December 2019. | 118 | 2019 | Profit | Taxation | Neutral
301 | The different accounting treatment of fixed assets for tax and accounting purposes is one reason why the taxable income of the Group is not the same as its accounting profit. | 118 | 2019 | Profit | Taxation | Neutral
302 | The Company reported a profit for the financial year ended 31 December 2019 of £190,796,000 | 140 | 2019 | Profit | Financial performance | Good
303 | Non-equity share capital is classified as a liability if it is redeemable on a specific date or at the option of the shareholders or if dividend payments are not discretionary. Dividends thereon are recognised in the profit and loss account as a financial expense. | 141 | 2019 | Profit | Reporting | Neutral
304 | Income tax on the profit or loss for the year comprises current and deferred taxation. Income tax is recognised in the Income Statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. | 142 | 2019 | Profit | Taxation | Neutral
305 | our shareholders a large proportion of management’s remuneration continues to be in shares which must be retained for up to 5 years. | 7 | 2019 | remuneration | Remuneration | Good
306 | The achievement of annual health and safety improvement targets is directly linked to the remuneration of the Executive Directors and senior management, as explained in the Remuneration Report | 41 | 2019 | remuneration | Remuneration | Good
307 | Senior Independent Non-Executive Director and Chair of the Remuneration Committee of Bunzl plc. Non-Executive Director and Chair of the Remuneration Committee of Redrow plc - Vanda Murray | 42 | 2019 | remuneration | Remuneration | Good
308 | Director of the Mineral Products Association. Non-Executive Director and Chair of the Remuneration Committee of Eurocell plc. - Martyn Coffey | 42 | 2019 | remuneration | Committees | Neutral
309 | Non-Executive Director and Chair of the Remuneration Committee of Victrex plc. - [NAME] | 43 | 2019 | remuneration | Committees | Neutral
310 | Non-Executive Director and Chair of the Remuneration Committee of Churchill China PLC. Non-Executive Director and Chair of the Remuneration Committee of Zotefoams PLC. | 43 | 2019 | remuneration | Committees | Neutral
311 | The Board recognises that we are accountable to shareholders for good corporate governance, and this report, together with the Reports of the Audit, Nomination and Remuneration Committees | 44 | 2019 | remuneration | Governance | Neutral
312 | The Remuneration Report contains details of our gender ratios and gender pay gap data (pages 82 and 83), and the Nomination Committee Report | 45 | 2019 | remuneration | Diversity | Neutral
313 | The Board delegates specific responsibilities to the Audit, Remuneration and Nomination Committees. | 46 | 2019 | remuneration | Delegation | Neutral
314 | The Remuneration Report also provides gender pay and balance information. Ad hoc Board Committees are established for particular purposes: for example, during 2019 Board Committees were established to approve preliminary and half-year results | 46 | 2019 | remuneration | Diversity | Neutral
315 | The current Remuneration Policy was last approved by shareholders in 2017, and a revised Policy will be submitted for approval at the 2020 Annual General Meeting. | 48 | 2019 | remuneration | Policy | Neutral
316 | The Directors’ Remuneration Report contains the 2020 Policy, which has been prepared taking into account the UK Code and the views expressed during a detailed consultation process with the Company’s top 20 shareholders and with external voting agencies. | 48 | 2019 | remuneration | Policy | Neutral
317 | The Remuneration Report also gives details of how the current Policy has been applied, how the Remuneration Committee has carried out its responsibilities during the year and the remuneration practices and outcomes | 48 | 2019 | remuneration | Reporting | Neutral
318 | Continue to monitor the success of the action plan for engagement with employees and other stakeholders on remuneration. | 55 | 2019 | remuneration | Engagement | Neutral
319 | Developed the new Remuneration Policy and its application for 2020 | 55 | 2019 | remuneration | Policy | Neutral
320 | Sought shareholder approval to extend the Management Incentive Plan to align with the new 2020 Remuneration Policy under which it operates. | 55 | 2019 | remuneration | Policy | Good
321 | Executive Director and senior management remuneration packages for 2020 set, having taken into account the pay and benefits of the wider workforce and the comparator group | 55 | 2019 | remuneration | Remuneration | Good
322 | Reviewed the success of the 2019 action plan for engagement with employees and other stakeholders on remuneration | 55 | 2019 | remuneration | Remuneration | Neutral
323 | I am writing to you as the Chair of Marshalls’ Remuneration Committee and am pleased to set out in this report how the Committee has carried out its objectives and responsibilities during 2019 | 56 | 2019 | remuneration | Reporting | Neutral
324 | our proposed new 2020 Remuneration Policy, and our Annual Remuneration Report showing how our current Policy was applied during the year and outcomes for our Executives. | 56 | 2019 | remuneration | Remuneration | Neutral
325 | The Committee therefore conducted a comprehensive review of Marshalls’ Executive remuneration arrangements in 2019 | 56 | 2019 | remuneration | Review | Neutral
326 | The latest review of the remuneration of senior Executives and managers at Marshalls, reliably demonstrated to the Committee that, due to a material increase in the scale and complexity of the Group over the last few years | 57 | 2019 | remuneration | Review | Neutral
327 | The resulting salary of £501,000 remains below the lower quartile against comparable companies and on a total remuneration basis results in a package of between the lower quartile and median | 57 | 2019 | remuneration | Remuneration | Neutral
328 | In setting all elements of remuneration the Company seeks to benchmark itself against comparable companies | 57 | 2019 | remuneration | Benchmarking | Neutral
329 | The aim of the Company’s policy is to attract, retain and continue to motivate talented employees while aligning remuneration with the achievement of the Company’s strategic objectives. | 57 | 2019 | remuneration | Alignment | Good
330 | [NAME] was appointed to the Board as a Non-Executive Director and joined the Remuneration Committee on 1 October 2019. | 57 | 2019 | remuneration | Appointment | Neutral
331 | [NAME] has served as a member or Chair of a number of other remuneration committees. | 57 | 2019 | remuneration | Leadership | Neutral
332 | I will be available at the Company’s 2020 AGM to answer any questions in relation to this Remuneration Report | 57 | 2019 | remuneration | Leadership | Good
333 | PwC’s fees are agreed by the Remuneration Committee according to the work performed. PwC were appointed after a tender process by the Committee in 2016, and their terms of engagement are available on request from the Company Secretary | 58 | 2019 | remuneration | Audit Fees | Neutral
334 | The Committee is satisfied that the remuneration advice from PwC is objective and independent based on the separation of the team advising the Committee from any other work undertaken by PwC for the Group and the fact that PwC is a signatory to the Remuneration Consultants Group’s Code of Conduct. | 58 | 2019 | remuneration | Assurance | Neutral
335 | total remuneration benchmarking of Non-Executive and Executive Directors and senior Executives; and general advice on remuneration trends, regulations and best practice.The amount paid to PwC in respect of remuneration advice received during 2019 was £62,500 | 58 | 2019 | remuneration | Benchmarking | Neutral
336 | Our Remuneration Report has been prepared in accordance with the Companies Act 2008 and Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 | 58 | 2019 | remuneration | Compliance | Neutral
337 | The Remuneration Policy received a vote of 96 per cent in favour at the 2017 AGM | 58 | 2019 | remuneration | Voting | Good
338 | It is the Committee’s view that one of the key objectives of equity-based remuneration is to align Executives’ interests and those of shareholders. | 60 | 2019 | remuneration | Alignment | Good
339 | The ability for the Directors to gain and lose, dependent on the share price performance of the Company, at a level which is material to their total remuneration is a key facet of the Company’s Remuneration Policy. The Committee has discretion to adjust remuneration as a result of share price appreciation or depreciation, but has not seen fit to exercise this discretion in relation to 2019 outcomes. | 61 | 2019 | remuneration | performance | Neutral
340 | Base salaries are set taking into account the individual’s scope, role, responsibilities and performance, performance of the Group, wider employee salary increases, remuneration practices in the Group, and the economic environment | 62 | 2019 | remuneration | Remuneration | Neutral
341 | The Remuneration Committee is required to submit its new Remuneration Policy to a formal shareholder vote at the next Annual General Meeting of the Company | 64 | 2019 | remuneration | Governance | Neutral
342 | The Remuneration Committee, having reviewed its current Remuneration Policy and invited shareholder comment, concluded that the current Policy in substance remained fit for purpose to support the implementation of the Company’s strategy over the next 3-year Policy period. | 64 | 2019 | remuneration | Review | Neutral
343 | the Committee considered the Company’s strategy and how the current Remuneration Policy related to and supported the strategy, and formed its own views on the changes (if any) required to the Policy to align with the strategy; | 64 | 2019 | remuneration | Alignment | Neutral
344 | the Committee also consulted with Executive Directors and other relevant members of senior management on the proposed changes to the Remuneration Policy. | 64 | 2019 | remuneration | Collaboration | Neutral
345 | The Committee was mindful in its deliberations on the new Remuneration Policy of any potential conflicts of interest and sought to minimise them through an open and transparent internal consultation process, | 64 | 2019 | remuneration | Procedures | Good
346 | The Remuneration Policy is designed to ensure that incentives do not encourage short-term risk taking at the expense of a long-term sustainable business. | 65 | 2019 | remuneration | sustainability | Good
347 | The Committee’s policy is to target a remuneration package that is at around median, for median performance, and in the upper quartile for exceptional performance, and which is closely linked with the Company’s strategic objectives | 66 | 2019 | remuneration | Target | Neutral
348 | In setting all elements of remuneration the Committee is advised by independent consultants and periodically uses data from external research into the salaries and benefits paid by companies of a comparable size and complexity to the Company | 66 | 2019 | remuneration | Advisory | Neutral
349 | The aim of the Policy is to attract, retain and continue to motivate talented Executive Directors while aligning remuneration with shareholder interests and with the achievement of strategic performance objectives. | 66 | 2019 | remuneration | Alignment | Good
350 | This is achieved by balancing a basic fixed package, which is periodically benchmarked against a comparator group, with the opportunity to achieve upper quartile remuneration from a combination of stretching but achievable incentives. | 66 | 2019 | remuneration | Benchmarking | Neutral
351 | whether a benchmarking exercise is appropriate (using salaries within the ranges paid by the companies in the comparator groups for remuneration benchmarking) | 67 | 2019 | remuneration | Benchmarking | Neutral
352 | Any changes to the comparator groups will be explained in the report on the implementation of Remuneration Policy in the following financial year | 67 | 2019 | remuneration | Transparency | Neutral
353 | Annual performance conditions and targets are set at the beginning of the Plan year by reference to financial, strategic and operational objectives by the Remuneration Committee | 68 | 2019 | remuneration | performance | Neutral
354 | Details of the performance conditions, targets and their level of satisfaction for the year being reported on will be set out in the Remuneration Report for the relevant financial year. | 68 | 2019 | remuneration | Reporting | Neutral
355 | An award under the Plan is subject to satisfying relevant performance conditions and targets determined annually by the Remuneration Committee by reference to financial and non-financial objectives that are closely linked to the strategy of the business | 69 | 2019 | remuneration | performance | Neutral
356 | Any adjustments or discretion applied by the Committee will be fully disclosed in the following year’s Remuneration Report | 69 | 2019 | remuneration | Transparency | Neutral
357 | An award under the Plan is subject to satisfying relevant performance conditions and targets determined annually by the Remuneration Committee by reference to financial and non-financial objectives that are closely linked to the strategy of the business | 69 | 2019 | remuneration | performance | Neutral
358 | The Committee has arrangements in place to receive and review the views of the Company’s employees on Executive remuneration and the application of the Remuneration Policy by means of regular meetings with employee groups attended by the designated Non-Executive Director for workforce engagement, periodic surveys and detailed half yearly reports from the Group HR Director to the Committee. These are regularly and openly communicated to the Board. In setting the Policy, the Company has not used any remuneration comparison measurements. | 71 | 2019 | remuneration | Engagement | Good
359 | Where an existing employee is promoted to the Board, the Policy set out above would apply from the date of promotion but there would be no retrospective application of the Policy in relation to subsisting incentive awards or remuneration arrangements | 72 | 2019 | remuneration | Promotion | Neutral
360 | Executive Directors are permitted to hold one external plc Board appointment, and may retain any remuneration received in that capacity. | 73 | 2019 | remuneration | Directorship | Neutral
361 | The Remuneration Committee’s normal policy is that a variable bonus will be pro-rated depending on the proportion of the measurement / vesting period in which the Executive remained in employment. | 73 | 2019 | remuneration | Policy | Neutral
362 | It is the Remuneration Committee’s intention to use discretion not to pro-rate in circumstances where there is an appropriate business case which will be explained in full to shareholders. | 73 | 2019 | remuneration | Policy | Neutral
363 | the Remuneration Committee’s normal policy is that it will not pro-rate. The Remuneration Committee will determine whether to pro-rate based on the circumstances of the Executive’s departure. | 73 | 2019 | remuneration | Policy | Neutral
364 | The Remuneration Committee’s normal policy is that it will not pro-rate. The Remuneration Committee will determine whether to pro-rate based on the circumstances of change of control. | 75 | 2019 | remuneration | Policy | Neutral
365 | The Remuneration Committee’s normal policy is that it will pro-rate for time. It is the Remuneration Committee’s intention only to use discretion to not pro-rate in circumstances where there is an appropriate business case which will be explained in full to shareholders | 75 | 2019 | remuneration | Policy | Neutral
366 | The Board is responsible for setting the remuneration of the Non-Executive Directors | 76 | 2019 | remuneration | Remuneration | Neutral
367 | The Remuneration Committee is responsible for setting the Chair’s fees. | 76 | 2019 | remuneration | Remuneration | Neutral
368 | Non-Executive Directors and the Chair do not participate in any variable remuneration or benefits arrangements. | 76 | 2019 | remuneration | Remuneration | Good
369 | The Committee’s approach to the review of wider workforce pay policies and how it has taken these into consideration in setting remuneration; | 76 | 2019 | remuneration | Alignment | Neutral
370 | Comparison metrics relating to Executive and employee remuneration. | 76 | 2019 | remuneration | Remuneration | Neutral
371 | Reporting is prepared on a six monthly basis to show details of all elements of remuneration for all members of the workforce | 76 | 2019 | remuneration | Transparency | Good
372 | General positioning of remuneration packages (benchmarking); | 76 | 2019 | remuneration | Benchmarking | Neutral
373 | As Senior Independent Director, Chair of the Remuneration Committee and designated Non-executive Director for workforce engagement | 76 | 2019 | remuneration | Leadership | Good
374 | this forum, the Employee Voice Group (“EVG”), meets on at least a quarterly basis and provides valuable input into new policy development around a range of topics including reward and remuneration policy. | 76 | 2019 | remuneration | Engagement | Good
375 | whether the element of remuneration is consistent with the Company remuneration principles | 77 | 2019 | remuneration | Consistency | Neutral
376 | The Committee uses its review of the wider workforce remuneration and incentives to inform the approach applied to the remuneration of the Executive Directors and senior management. | 77 | 2019 | remuneration | Alignment | Neutral
377 | In summary, the Committee is satisfied that the approach to remuneration across the wider workforce is consistent with the Company’s Remuneration Policy and the wider principles of fairness and sustainability that are fundamental to the Group’s culture | 77 | 2019 | remuneration | Alignment | Good
378 | Further, in the Committee’s opinion the approach to Executive remuneration aligns with wider Company pay policy and there are no anomalies specific to the Executive Directors | 77 | 2019 | remuneration | Alignment | Good
379 | he Remuneration Committee has always been committed to ensuring that CEO reward is commensurate with performance. The chart shows a clear alignment between shareholder returns and CEO single figure pay. | 79 | 2019 | remuneration | Alignment | Good
380 | The Committee is satisfied that the underlying picture does not show a divergence trend between the CEO remuneration and employees generally, i.e. excluding share price volatility, the relationship with employee pay is consistent. | 79 | 2019 | remuneration | Consistency | Good
381 | Where the base structure of remuneration is similar, for example on comparison between the Executive Committee pay and that of the CEO, the ratio is much more stable over time | 79 | 2019 | remuneration | Stability | Neutral
382 | Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that comply with that law and those regulations | 89 | 2019 | remuneration | Compliance | Neutral
383 | In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. | 97 | 2019 | remuneration | Audit | Good
384 | Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of Directors’ remuneration have not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting records and returns. | 97 | 2019 | remuneration | Compliance | Neutral
385 | Further details of Directors’ remuneration, share options, long-term incentive plans and Directors’ pension entitlements are disclosed in the Remuneration Committee Report | 117 | 2019 | remuneration | Reporting | Neutral
386 | positioned well for sustainable growth | 1 | 2020 | Growth | sustainability | Good
387 | Our mission is to deliver sustainable growth through a brand that drives customer specification of innovative product solutions for the built environment. | 1 | 2020 | Growth | Innovation | Good
388 | Maintained focus on innovation, ESG priorities, sales opportunities and sustainable growth over the medium term | 2 | 2020 | Growth | Focus | Good
389 | Progressive growth in sales over the second half of 2020 – sales in quarter 4 ahead of prior year | 2 | 2020 | Growth | Growth | Good
390 | Strong growth in Domestic sales – growth of 9% in H2 2020 | 2 | 2020 | Growth | Growth | Good
391 | We have a good pipeline of capital investment projects that will drive future organic growth. | 3 | 2020 | Growth | Investment | Good
392 | A strategy driven by organic growth, digital investment and selective acquisitions | 4 | 2020 | Growth | Strategy | Good
393 | Wide market reach targeting strong growth areas, e.g. New Build Housing, Road and Rail, Infrastructure and Water Management | 4 | 2020 | Growth | Market | Good
394 | At the heart of the strategy are eight priority areas for investment and business focus. We believe that these areas provide significant growth potential for the Group | 6 | 2020 | Growth | Strategy | Good
395 | Our mission is to deliver sustainable growth through a brand that drives customer specification of innovative product solutions for the built environment | 6 | 2020 | Growth | sustainability | Good
396 | To grow our emerging businesses to help us expand into key growth areas | 7 | 2020 | Growth | Expansion | Good
397 | We have restructured the reporting channels to provide additional focus and have continued to invest to promote the introduction of new products and fuel growth | 7 | 2020 | Growth | Investment | Neutral
398 | In the second half of the year, the strong sales growth was better than expected and continued to improve throughout the period. | 8 | 2020 | Growth | Growth | Good
399 | Since the half year, the trend of sales growth has progressively increased and in the second half of the year sales were just slightly down against the comparative period for 2019 | 8 | 2020 | Growth | Growth | Bad
400 | this year we have refreshed our 5 year Strategy which continues to be supported by our goals and growth objectives which are set out within the Group’s eight strategic growth pillars. | 9 | 2020 | Growth | Strategy | Good
401 | Each area of the business has a range of improvement plans to drive growth. | 9 | 2020 | Growth | Growth | Neutral
402 | Although market demand remains uncertain, we remain focused on developing future growth opportunities and delivering the strategic objectives in our 5 year Strategy. | 9 | 2020 | Growth | Focus | Neutral
403 | We are well placed to deliver long-term sustainable growth | 10 | 2020 | Growth | sustainability | Good
404 | The positive actions taken by the Group in response to the COVID-19 pandemic have ensured the Group’s much improved performance in the second half of the year, which has also seen sales growth at higher rates than was initially expected. | 10 | 2020 | Growth | Adaptability | Neutral
405 | We continue to generate a good pipeline of capital investment projects that will drive future organic growth | 11 | 2020 | Growth | Investment | Good
406 | Organic growth will continue to be supported by targeted acquisitions | 11 | 2020 | Growth | Growth | Good
407 | We will continue to focus on bolt-on acquisition targets in our key growth areas of Water Management and New Build Housing. | 11 | 2020 | Growth | Acquistion | Good
408 | The Group’s long-term strategy continues to focus on organic investment to drive growth and is supported by an increasingly strong ESG agenda. | 11 | 2020 | Growth | Strategy | Good
409 | We remain committed to the 2025 Strategy as our driver for growth | 12 | 2020 | Growth | Commitment | Good
410 | we are well placed to deliver continued growth and operational profit improvements. | 12 | 2020 | Growth | Growth | Good
411 | Our continuing investments in digital and operational efficiency programmes mean that we are now in the best possible position to benefit from future market growth | 12 | 2020 | Growth | Investment | Good
412 | Detailed analysis means we understand the long-term drivers of market growth. | 14 | 2020 | Growth | Market | Neutral
413 | We target individual market sectors – those with sustainable growth | 14 | 2020 | Growth | sustainability | Neutral
414 | Our focus continues to be in those parts of the market with greatest growth potential | 14 | 2020 | Growth | Growth | Neutral
415 | its forecast indicates further growth of 4.9 per cent in 2022, at which point it will surpass the levels of output achieved in 2019. | 14 | 2020 | Growth | Forecast | Neutral
416 | Growth in 2021 is expected to be driven by larger projects, such as [NAME], and additional focus on medium-term investment programmes | 14 | 2020 | Growth | Investment | Good
417 | Marshalls continues to target those areas of the market with the greatest growth potential and the underlying indicators in the New Build Housing, Road, Rail and Water Management markets remain supportive. | 14 | 2020 | Growth | Target | Neutral
418 | New Build Housing is a key strategic growth area. | 15 | 2020 | Growth | Strategy | Good
419 | Both Public Housing (15.5 per cent) and Private Housing (14.8 per cent) are forecast to grow in 2021 – overall growth of 15.4 per cent | 15 | 2020 | Growth | Forecast | Good
420 | Water Management, Road and Rail are key strategic growth areas. | 15 | 2020 | Growth | Strategy | Good
421 | We generate value by delivering sustainable growth | 18 | 2020 | Growth | sustainability | Good
422 | ESG principles and responsible business provide the foundations for sustainable growth | 19 | 2020 | Growth | sustainability | Neutral
423 | To ensure that our business practices can deliver sustainable growth | 19 | 2020 | Growth | sustainability | Neutral
424 | Delivering sustainable growth | 20 | 2020 | Growth | sustainability | Good
425 | To make strategic investments for organic growth and acquisitions | 20 | 2020 | Growth | Investment | Good
426 | Strong growth in HY2 has supported the Group’s market capitalisation | 20 | 2020 | Growth | Growth | Good
427 | Continued to exceed CPA growth forecasts. | 20 | 2020 | Growth | Forecast | Good
428 | To focus on new product development to drive growth. | 20 | 2020 | Growth | Focus | Good
429 | To ensure that the capital structure remains aligned with the Group’s corporate growth objectives. | 21 | 2020 | Growth | Alignment | Neutral
430 | To target growth areas such as New Build Housing, Road, Rail and Water Management | 21 | 2020 | Growth | Focus | Neutral
431 | To invest in capital expenditure for organic growth. | 21 | 2020 | Growth | Investment | Neutral
432 | Strong growth in Domestic sales in 2020 | 21 | 2020 | Growth | Growth | Good
433 | Significant growth in key focus areas whilst maintaining operational flexibility | 21 | 2020 | Growth | Growth | Good
434 | Strong growth in New Build Housing revenue | 21 | 2020 | Growth | Revenue | Good
435 | Growth in the emerging businesses | 21 | 2020 | Growth | Expansion | Good
436 | Delivering sustainable growth is key to the Group’s strategy. The aim is to outperform the market and grow market share. | 22 | 2020 | Growth | sustainability | Good
437 | EPS growth is a strategic target | 22 | 2020 | Growth | Growth | Neutral
438 | Marshalls continues to have strong market positions and a strategy of targeting those market areas where growth prospects are greatest. | 26 | 2020 | Growth | Target | Good
439 | The Group’s digital strategy is a key growth driver but also provides an important element of risk mitigation | 26 | 2020 | Growth | Strategy | Neutral
440 | The Group continues to target those market areas where growth prospects are greatest, e.g. New Build Housing, Road, Rail and Water Management. | 27 | 2020 | Growth | Market | Good
441 | The sharp reduction in sales due to [NAME] in the second quarter of 2020 was reversed from quarter three and the second half of the year saw significant sales growth and increase in activity levels throughout the sector. | 27 | 2020 | Growth | Recovery | Neutral
442 | The UK Government’s stated objective is to support construction and manufacturing to fuel economic growth and significant investment support for infrastructure and housing has been announced | 27 | 2020 | Growth | Investment | Good
443 | Revenue growth in the second half of the year recovered quickly and by the final quarter was ahead of the comparative figures for 2019. | 32 | 2020 | Growth | Recovery | Good
444 | Public Sector and Commercial improving – focus on growth sectors | 32 | 2020 | Growth | Improvement | Good
445 | Marshalls Landscape Protection and Mineral Products and they continue to be a key strategic focus and a positive driver for growth. | 34 | 2020 | Growth | Strategy | Good
446 | Cash outflow on capital expenditure in the year was £14.7 million (2019: £22.9 million). This included self-help growth expenditure and the replacement of existing assets, business improvements and new process technology. | 35 | 2020 | Growth | Expenditure | Neutral
447 | The Group has invested £101.4 million back into the business to generate growth, improve productivity and provide industry leading manufacturing facilities | 35 | 2020 | Growth | Investment | Good
448 | The Group has a strong balance sheet with a range of medium-term bank facilities capable to fund investment initiatives to generate growth. | 35 | 2020 | Growth | Strength | Good
449 | In addition to capital expenditure, investment in new product development remains an important element in the Group’s organic growth agenda | 36 | 2020 | Growth | Innovation | Good
450 | Our objective is to grow our emerging businesses to help us expand into key growth areas. We aim to remove barriers and lay solid foundations for growth. | 36 | 2020 | Growth | Expansion | Good
451 | Capital investment remains core to strategic growth | 37 | 2020 | Growth | Investment | Good
452 | Practically, our strategy work addresses the challenges and opportunities of the Sustainable Development Goals – specifically Decent Work and Economic Growth, Sustainable Cities and Communities, Responsible Consumption and Production, and Climate Action. | 39 | 2020 | Growth | sustainability | Good
453 | We use an intensity ratio in order to define emissions data in relation to our business – for [NAME], this is tonnes of CO2e per tonne of product. This allows us to benchmark ourselves, give context to stakeholders and allows for business growth | 44 | 2020 | Growth | Benchmarking | Good
454 | To give additional focus to our customers, through product and service innovation that drives brand loyalty and profitable growth, and to factor in the potential for market disruption. | 54 | 2020 | Growth | Innovation | Good
455 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving profitable growth in accordance with the Company strategy. | 74 | 2020 | Growth | Strategy | Neutral
456 | The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability. | 74 | 2020 | Growth | sustainability | Neutral
457 | This ensures that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees nor in a way that promotes short-term, high risk behaviour. | 74 | 2020 | Growth | Growth | Neutral
458 | TSR is defined as share price growth plus reinvested dividends. | 86 | 2020 | Growth | Dividend | Neutral
459 | Profit before tax was £22.5 million, before operational restructuring costs and asset impairments of £17.8 million. | 8 | 2020 | Profit | Financial performance | Neutral
460 | Reported profit before tax was £4.7 million (2019: £69.9 million). | 8 | 2020 | Profit | Financial performance | Neutral
461 | We have continued to develop Marshalls NV’s operating model and improve efficiency. In 2020 the business became profitable for the first time and there are further opportunities for improvement | 10 | 2020 | Profit | Improvement | Good
462 | Operating profit, before operational restructuring costs and asset impairments, was £27.2 million (2019: £73.7 million) | 11 | 2020 | Profit | Financial performance | Neutral
463 | After operational restructuring costs and asset impairments the reported profit before tax for the period was £4.7 million (2019: £69.9 million) | 11 | 2020 | Profit | Financial performance | Neutral
464 | we are well placed to deliver continued growth and operational profit improvements. | 12 | 2020 | Profit | Growth | Good
465 | To maintain a strong market position and grow the business’ profitability in all of the Group’s end markets. | 20 | 2020 | Profit | Improvement | Good
466 | To increase sustainable profitability in the emerging businesses. | 20 | 2020 | Profit | Financial performance | Good
467 | Sustainable improvement in profitability is a strategic priority | 22 | 2020 | Profit | Strategy | Neutral
468 | Profit before tax (before operational restructuring costs and asset impairments) was £22.5 million which was ahead of expectations | 22 | 2020 | Profit | Financial performance | Good
469 | Reduction in revenue and profitability | 22 | 2020 | Profit | Financial performance | Bad
470 | Our Belgium business has become profitable for the first time during 2020 | 33 | 2020 | Profit | Financial performance | Good
471 | Operating profit, before operational restructuring costs and asset impairments, was £27.2 million (2019: £73.7 million). | 33 | 2020 | Profit | Financial performance | Neutral
472 | After operational restructuring costs and asset impairments of £17.8 million, the reported operating profit was £9.4 million (2019: £73.7 million). | 33 | 2020 | Profit | Financial performance | Neutral
473 | To give additional focus to our customers, through product and service innovation that drives brand loyalty and profitable growth, and to factor in the potential for market disruption | 55 | 2020 | Profit | Innovation | Good
474 | EPS relates to our strategic objective to grow profits. Reported EPS, before operational restructuring costs and asset impairments, was 8.60 pence (2019: 29.36 pence) in 2020. | 71 | 2020 | Profit | Growth | Neutral
475 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving profitable growth in accordance with the Company strategy. | 74 | 2020 | Profit | Strategy | Neutral
476 | The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability. | 74 | 2020 | Profit | Growth | Good
477 | This ensures that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees nor in a way that promotes short-term, high risk behaviour. | 74 | 2020 | Profit | sustainability | Neutral
478 | As profitability increases, corporation tax will also increase. In 2020 the Group was re-accredited with the Fair Tax Mark. | 79 | 2020 | Profit | Taxation | Neutral
479 | Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of their profit or loss for that period | 92 | 2020 | Profit | Compliance | Neutral
480 | The materiality that we used for the Group Financial Statements was £2.9 million which was determined taking into consideration a number of metrics, but with particular focus on net assets, revenue and profit before tax. | 94 | 2020 | Profit | Materiality | Neutral
481 | Full scope audits were performed on all UK components. This accounts for 95 per cent of Group revenue, 100 per cent of Group net assets and 93 per cent of profit before tax generated by profit making entities. | 94 | 2020 | Profit | Audit | Neutral
482 | Our approach to determining materiality has changed from 5 per cent of profit before tax to a consideration of a number of metrics including net assets, revenue and profit before tax due to the significant adverse impact on trading and reported profits during 2020 arising from the COVID 19 pandemic | 94 | 2020 | Profit | Audit | Neutral
483 | We have determined materiality by considering a range of possible benchmarks with a particular focus on net assets, revenue and profit before tax, as well as the scale of the balance sheet and the overall size of the business. | 96 | 2020 | Profit | Audit | Neutral
484 | Our selected materiality represents approximately 1 per cent of net assets. Materiality in the prior year was determined based on 5 per cent profit before tax. | 96 | 2020 | Profit | Audit | Neutral
485 | The downturn in revenues, profits and cash flows experienced during 2020 as a consequence of COVID-19 and the UK lockdown means that we do not consider profit before tax to be the most appropriate metric for determining materiality for FY20 | 96 | 2020 | Profit | Consideration | Neutral
486 | In the current year we have taken controls reliance over the revenue and customer rebates business cycles as these are the key accounts that impact the Group’s profit | 98 | 2020 | Profit | Control | Neutral
487 | Income tax on the profit or loss for the year comprises current and deferred taxation. | 114 | 2020 | Profit | Taxation | Neutral
488 | Segment profit represents the profit earned without allocation of certain central administration costs that are not capable of allocation | 117 | 2020 | Profit | Segment | Neutral
489 | The majority of the Group’s profits are earned in the UK with the standard rate of corporation tax being 19 per cent for the year to 31 December 2020 | 120 | 2020 | Profit | Taxation | Neutral
490 | Basic earnings per share from total operations of 1.19 pence (2019: 29.36 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, of £2,370,000 (2019: £58,240,000) by the weighted average number of shares in issue during the period of 198,642,224 (2019: 198,346,723). | 121 | 2020 | Profit | EPS | Neutral
491 | Basic earnings per share before operational restructuring costs and asset impairments of 8.60 pence (2019: 29.36 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, of £17,078,000 (2019: £58,240,000) by the weighted average number of shares in issue during the period of 198,642,224 (2019: 198,346,723) | 121 | 2020 | Profit | EPS | Neutral
492 | Diluted earnings per share from total operations of 1.18 pence (2019: 29.14 pence) per share is calculated by dividing the profit for the financial year, after adjusting for non-controlling interests, of £2,370,000 (2019: £58,240,000) by the weighted average number of shares in issue during the period of 198,642,224 (2019: 198,346,723) plus potentially dilutive shares of 1,614,132 (2019: 1,496,678), which totals 200,256,356 (2019: 199,843,401) | 121 | 2020 | Profit | EPS | Neutral
493 | The Group primarily finances its operations using share capital, retained profits and borrowings. | 126 | 2020 | Profit | financing | Neutral
494 | Non-equity share capital is classified as a liability if it is redeemable on a specific date or at the option of the shareholders or if dividend payments are not discretionary. Dividends thereon are recognised in the profit and loss account as a financial expense. | 142 | 2020 | Profit | Classification | Neutral
495 | Income tax on the profit or loss for the year comprises current and deferred taxation | 143 | 2020 | Profit | Taxation | Neutral
496 | the following temporary differences are not provided for: the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future | 143 | 2020 | Profit | Exclusion | Neutral
497 | To ensure a strong alignment between the interests of management and our shareholders a large proportion of management’s remuneration continues to be in shares which must be retained for up to five years | 9 | 2020 | remuneration | Alignment | Neutral
498 | During the second quarter of the year, the Board and Executive Management agreed to a 20 per cent reduction in remuneration and other senior managers also agreed to a 15 per cent reduction. | 9 | 2020 | remuneration | Remuneration | Neutral
499 | The achievement of annual health and safety improvement targets is directly linked to the remuneration of the Executive Directors and senior management, as explained in the Remuneration Report | 51 | 2020 | remuneration | Health and safety | Good
500 | Senior Independent Non-Executive Director and Chair of the Remuneration Committee of Bunzl plc [NAME] | 52 | 2020 | remuneration | Governance | Neutral
501 | Director of the Mineral Products Association. Non-Executive Director and Chair of the Remuneration Committee of Eurocell plc [NAME] | 52 | 2020 | remuneration | Directorship | Neutral
502 | Non-Executive Director and Chair of the Remuneration Committee of Churchill China PLC.  [NAME] | 52 | 2020 | remuneration | Directorship | Neutral
503 | Non-Executive Director and Chair of the Remuneration Committee of Victrex plc.  [NAME] | 53 | 2020 | remuneration | Directorship | Neutral
504 | The Board recognises that we are accountable to shareholders for good corporate governance, and this report, together with the Reports of the Audit, Nomination and Remuneration Committees | 54 | 2020 | remuneration | Accountability | Neutral
505 | The Board delegates specific responsibilities to the Audit, Remuneration and Nomination Committees. | 58 | 2020 | remuneration | Delegation | Neutral
506 | The Remuneration Report on pages 70 to 89 explains how the Group’s Remuneration Policy has been implemented, and shows Directors’ remuneration for 2020. | 58 | 2020 | remuneration | Remuneration | Neutral
507 | The Remuneration Report also provides gender pay and balance information | 58 | 2020 | remuneration | Diversity | Neutral
508 | The current Remuneration Policy was approved by shareholders in 2020 and is set out in the Directors’ Remuneration Report on pages 70 to 89 | 63 | 2020 | remuneration | Policy | Neutral
509 | The Remuneration Committee Report describes how the Remuneration Policy has been implemented during 2020 and the outcomes achieved. It also describes how the Remuneration Committee has carried out its responsibilities during the year | 63 | 2020 | remuneration | Policy | Neutral
510 | The Remuneration Committee continues to effectively discharge the duties delegated to it by the Board under the leadership of the Committee Chair, ensuring outcomes reflect performance and taking a holistic view of remuneration across the Group, having consulted employees appropriately, the importance of which is recognised by the Board | 63 | 2020 | remuneration | Oversight | Good
511 | The Board and Executive Management of Marshalls volunteered to take a 20 per cent reduction in remuneration | 67 | 2020 | remuneration | Remuneration | Good
512 | The Board and Executive Management of Marshalls volunteered to take a 20 per cent reduction in remuneration. Senior managers in the business also took a 15 per cent reduction in their remuneration | 67 | 2020 | remuneration | Remuneration | Bad
513 | In the final quarter of 2020, all funding assistance received under these schemes was repaid in full and the remuneration saved, amounting to £120,000, was paid to [NAME]’ nominated charities | 67 | 2020 | remuneration | Charity | Good
514 | New Remuneration Policy approved by shareholders at our 2020 AGM following a comprehensive shareholder consultation. | 70 | 2020 | remuneration | Policy | Neutral
515 | Reviewed the success of the 2020 action plan for engagement with employees and other stakeholders on remuneration. | 70 | 2020 | remuneration | Engagement | Good
516 | Determine whether any changes to Executive Director and senior management remuneration packages for 2021 are appropriate, having taken into account the pay and benefits of the wider workforce and the comparator group | 70 | 2020 | remuneration | Evaluation | Neutral
517 | Assess whether our engagement plan with employees and other stakeholders on remuneration remains effective | 70 | 2020 | remuneration | Evaluation | Neutral
518 | Monitor alignment of Executive remuneration with wider workforce pay policies and incentives | 70 | 2020 | remuneration | Alignment | Neutral
519 | The CEO attends the Committee meetings by invitation but may not participate in discussions about his own remuneration | 70 | 2020 | remuneration | Governance | Neutral
520 | I am writing to you as the Chair of Marshalls Remuneration Committee and am pleased to set out in this report how the Committee has carried out its objectives and responsibilities during 2020 | 71 | 2020 | remuneration | Reporting | Neutral
521 | In making decisions on Executive pay, the Remuneration Committee considers wider workforce remuneration and conditions. | 73 | 2020 | remuneration | Consideration | Good
522 | I will be available at the Company’s 2021 AGM to answer any questions in relation to this Remuneration Report. | 73 | 2020 | remuneration | Availability | Neutral
523 | Our Remuneration Report has been prepared in accordance with the Companies Act 2008 and Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 | 73 | 2020 | remuneration | Compliance | Neutral
524 | For those elements of remuneration provided in shares in 2019 and 2020, we have separated out their original value on grant and the additional value generated due to share price growth over the vesting period. It is the Committee’s view that one of the key objectives of equity-based remuneration is to align Executives’ interests and those of shareholders. | 74 | 2020 | remuneration | Alignment | Neutral
525 | The ability for the Directors to gain and lose, dependent on the share price performance of the Company, at a level which is material to their total remuneration is a key facet of the Company’s Remuneration Policy. | 76 | 2020 | remuneration | Alignment | Neutral
526 | Pension allowances are excluded for the purposes of calculating any other element of remuneration based on a percentage of salary. | 76 | 2020 | remuneration | Exclusion | Neutral
527 | Annual performance conditions and targets are set at the beginning of the Plan year by reference to financial, strategic and operational objectives by the Remuneration Committee | 77 | 2020 | remuneration | performance | Neutral
528 | the Committee’s approach to the review of wider workforce pay policies and how it has taken these into consideration in setting remuneration; | 82 | 2020 | remuneration | Alignment | Neutral
529 | comparison metrics relating to Executive and employee remuneration | 82 | 2020 | remuneration | Comparison | Neutral
530 | The Committee fulfils its responsibility for the oversight and review of wider workforce pay, policies and incentives through a formal process. Reporting is prepared on an annual basis to show details of all elements of remuneration for all members of the workforce (excluding temporary and agency staff and consultants). | 82 | 2020 | remuneration | Oversight | Neutral
531 | As Senior Independent Director, Chair of the Remuneration Committee and designated Non-Executive Director for workforce engagement, [NAME] attends employee forums within a planned engagement framework | 82 | 2020 | remuneration | Engagement | Good
532 | This forum, the Employee Voice Group (“EVG”), meets on at least a quarterly basis and provides valuable input into new policy development around a range of topics including Directors’ reward and remuneration policy. T | 82 | 2020 | remuneration | Engagement | Good
533 | whether the element of remuneration is consistent with the Company’s remuneration principles | 83 | 2020 | remuneration | Consistency | Neutral
534 | The Committee uses its review of the wider workforce remuneration and incentives to inform the approach applied to the remuneration of the Executive Directors and senior management | 83 | 2020 | remuneration | Alignment | Neutral
535 | The Committee uses its review of the wider workforce remuneration and incentives to inform the approach applied to the remuneration of the Executive Directors and senior management. In particular, the Committee is focused on whether, within the framework set out above, the approach to the remuneration of the Executive Directors and senior management is consistent with that applied to the wider workforce. | 83 | 2020 | remuneration | Consistency | Neutral
536 | In summary, the Committee is satisfied that the approach to remuneration across the wider workforce is consistent with the Company’s Remuneration Policy and the wider principles of fairness and sustainability that are fundamental to the Group’s culture. Further, in the Committee’s opinion the approach to Executive remuneration aligns with wider Company pay policy and there are no anomalies specific to the Executive Directors | 83 | 2020 | remuneration | Remuneration | Good
537 | The Company expects to develop its engagement and communication channels in relation to remuneration during 2021, and to report in more detail to shareholders on how this has been achieved | 83 | 2020 | remuneration | Communication | Neutral
538 | In summary, the Committee is satisfied that the approach to remuneration across the Company is consistent with the Company’s principles of remuneration. Further, in the Committee’s opinion, the approach to Executive remuneration aligns with wider Company pay policy and there are no anomalies specific to the Executive Directors | 83 | 2020 | remuneration | Consistency | Good
539 | the Remuneration Committee has always been committed to ensuring that CEO reward is commensurate with performance. | 84 | 2020 | remuneration | Performance | Neutral
540 | Shareholders expect the CEO to have a significant proportion of pay based on performance and paid in shares. It is this element of the package which provides the volatility in CEO remuneration and the variations in the ratio. The Committee is satisfied that the underlying picture does not show a divergence trend between the CEO remuneration and employees generally, i.e. excluding share price volatility, the relationship with employee pay is consistent | 84 | 2020 | remuneration | Performance | Neutral
541 | Where the base structure of remuneration is similar, for example on comparison between the Executive Committee pay and that of the CEO, the ratio is much more stable over time. | 84 | 2020 | remuneration | Stability | Neutral
542 | In accordance with The Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019, the table below shows the percentage change in Executive Director and Non-Executive Director total remuneration compared to the change for the average of UK-based employees of the Group excluding Executive Directors and Non-Executive Directors | 84 | 2020 | remuneration | Compliance | Neutral
543 | Executive Directors are permitted to hold one external plc board appointment and may retain any remuneration received in that capacity | 89 | 2020 | remuneration | Appointment | Neutral
544 | The Remuneration Committee was advised during the year by external remuneration adviser PricewaterhouseCoopers LLP (“PwC”). PwC attends meetings of the Committee by invitation. | 89 | 2020 | remuneration | Advisory | Neutral
545 | PwC’s fees are agreed by the Remuneration Committee according to the work performed. PwC was appointed after a tender process by the Committee in 2017, and its terms of engagement are available on request from the Company Secretary | 89 | 2020 | remuneration | Engagement | Neutral
546 | The Committee is satisfied that the remuneration advice from PwC is objective and independent based on the separation of the team advising the Committee from any other work undertaken by PwC for the Group and the fact that PwC is a signatory to the Remuneration Consultants Group’s Code of Conduct | 89 | 2020 | remuneration | Assurance | Good
547 | Details of Directors’ remuneration, their interests in the share capital of the Company and the share-based payment awards are contained in the Remuneration Committee Report | 91 | 2020 | remuneration | Transparency | Neutral
548 | Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that comply with that law and those regulations. | 92 | 2020 | remuneration | Compliance | Neutral
549 | the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration policies, key drivers for Directors’ remuneration, bonus levels and performance targets; | 99 | 2020 | remuneration | Consideration | Neutral
550 | In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006 | 99 | 2020 | remuneration | Compliance | Neutral
551 | Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of Directors’ remuneration have not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting records and returns. | 100 | 2020 | remuneration | Compliance | Neutral
552 | In addition to their salaries and pension allowances, the Group also provides non-cash benefits to Directors. Further details in relation to Directors are disclosed in the Remuneration Committee Report | 138 | 2020 | remuneration | Remuneration | Neutral
553 | Details of Directors’ remuneration, share options, long-term incentive plans and Directors’ pension entitlements are disclosed on pages 79 to 81 of the Remuneration Committee Report | 143 | 2020 | remuneration | Remuneration | Neutral
554 | Our mission is to deliver sustainable growth through a brand that drives customer specification of innovative product solutions for the built environment | 2 | 2021 | Growth | sustainability | Good
555 | From 2016 to 2021 we have seen strong cumulative annual growth rates | 4 | 2021 | Growth | Growth | Good
556 | Longer‑term capital plans underpin future growth potential | 5 | 2021 | Growth | Expansion | Good
557 | Objective is to support organic growth with earnings accretive acquisitions | 6 | 2021 | Growth | Expansion | Neutral
558 | Strategic goal underpinned by eight growth pillars | 6 | 2021 | Growth | Strategy | Neutral
559 | Growth in the Emerging Businesses | 6 | 2021 | Growth | Expansion | Good
560 | Capital investment remains core to strategic growth | 7 | 2021 | Growth | Investment | Good
561 | Since the half year, the trend of sales growth has progressively increased, and in the second half of the year sales were 11 per cent ahead of the comparative period for 2019. | 10 | 2021 | Growth | Growth | Good
562 | We have an ambitious strategic agenda, which is focused around our eight strategic growth pillars | 11 | 2021 | Growth | Strategy | Neutral
563 | We remain confident that our strategy will deliver profitable long-term growth and that we will be able to mitigate new material shortages and cost inflation through the effective management of the supply chain. | 11 | 2021 | Growth | Confidence | Good
564 | Trading in the first two months of 2022 has continued to be positive, with revenue growth of 13 per cent, and the order books remain strong. | 12 | 2021 | Growth | Growth | Good
565 | Revenue growth in the second half of the year was increasingly strong and was 11 per cent ahead of the comparative figures for 2019 | 12 | 2021 | Growth | Growth | Good
566 | The Group continues to focus on those market areas where future demand is expected to be greatest, including New Build Housing, Road, Rail and Water Management. Infrastructure is also expected to be a key element of medium-term construction growth. | 12 | 2021 | Growth | Market | Good
567 | We continue to generate a good pipeline of capital investment projects that will drive future organic growth, and we are now planning for capital investment of around £35 million in 2022 | 13 | 2021 | Growth | Investment | Good
568 | Organic growth will continue to be supported by targeted acquisitions. We will continue to focus on acquisition targets in our key growth areas of Water Management and New Build Housing | 13 | 2021 | Growth | Acquistion | Neutral
569 | Sustainability is embedded in our strategy and is a driver for growth | 14 | 2021 | Growth | Strategy | Good
570 | There continue to be supply chain uncertainties and constraints that may restrict growth over the medium term. | 16 | 2021 | Growth | Growth | Bad
571 | This still represents robust growth and with this increase, total construction output in 2022 would be 2.5 per cent higher than in 2019 | 16 | 2021 | Growth | Growth | Good
572 | Whilst the COVID-19 pandemic caused significant decline in the construction of commercial buildings in 2020, the CPA is forecasting steady growth in 2022 and 2023. Offices and retail are predicted to decline, but industrial units and warehousing remain strong due to the growth in online trading | 16 | 2021 | Growth | Growth | Bad
573 | Forecast output flat for 2022 and slightly down for 2023; however, this is from a very high growth figure of 17 per cent in 2021 | 17 | 2021 | Growth | Forecast | Bad
574 | Network of domestic installers to drive growth | 17 | 2021 | Growth | Growth | Neutral
575 | Expected to be a key driver for UK construction growth | 17 | 2021 | Growth | Growth | Good
576 | Growth to be driven by major projects (such as [NAME]) although there is a risk that such projects may exacerbate supply issues for other parts of the industry | 17 | 2021 | Growth | Growth | Neutral
577 | Cumulative growth of dividends of 10.4% (presupplementary) over the last five years | 19 | 2021 | Growth | Dividend | Good
578 | The annual strategic reviews conducted by the Board (the most recent being in November 2021), and the consideration of at least one of our strategic growth pillars at each Board meeting, focus on the long‑term sustainable success of the Group and our impact on key stakeholders | 20 | 2021 | Growth | Strategy | Neutral
579 | Customer centricity and sustainable materials supply are both strategic growth pillars of the business. | 21 | 2021 | Growth | Strategy | Good
580 | Our strategic growth pillars underpin our purpose, mission and strategy. | 21 | 2021 | Growth | Strategy | Neutral
581 | The fulfilment of the Board’s duty under Section 172(1) sits alongside its consideration of the Group’s capital structure and capital allocation policy and its resilience to existing and emerging risks (pages 34 to 43), which have all been reviewed in light of the Group’s performance during the year and its future growth aspirations. | 23 | 2021 | Growth | Governance | Neutral
582 | Recognising the criticality of logistics excellence, as one of our strategic growth pillars, a Drivers’ Working Party was also established during 2021 to enable our drivers to have their say in the decisions we take that impact them in their roles | 23 | 2021 | Growth | Growth | Bad
583 | Board presentations on growth pillars dependent on our engagement and relationships with key suppliers | 24 | 2021 | Growth | Engagement | Neutral
584 | Our ESG principles and responsible business practices provide the foundation for long-term sustainable growth and are central to our purpose | 26 | 2021 | Growth | Long term | Neutral
585 | The Board made a number of key decisions during 2021 that required a balanced consideration of our strategic growth pillars, the long-term sustainable growth of our business and the interests of stakeholders. | 26 | 2021 | Growth | Decision making | Neutral
586 | The Board approved the Group’s multi‑million‑pound investment in a new dual block plant at our St Ives manufacturing site that underpins a number of our strategic growth pillars including our commitment to new product development. | 26 | 2021 | Growth | Investment | Good
587 | We reinstated our dividends to shareholders following a period of careful capital management by the Board, ensuring the business remained on sound financial footing during the height of the pandemic, our focus being not only short‑term cash flow security but ensuring we continued to invest in the future growth and development of the business | 27 | 2021 | Growth | Dividend | Neutral
588 | we have reflected on how these challenges impact our long‑term objectives under our customer centricity growth pillar | 27 | 2021 | Growth | Growth | Bad
589 | In seeking approval from the Board, measurable performance targets and benefits were included in the proposal supporting the Board’s assessment of whether this investment is good value for our shareholders and supports long-term sustainable growth. | 28 | 2021 | Growth | Investment | Neutral
590 | Our ability to deliver our own products to our customers is a key part of our service proposition and sits within our logistics excellence strategic growth pillar | 29 | 2021 | Growth | Growth | Good
591 | Focused strategy to deliver sustainable growth | 30 | 2021 | Growth | Strategy | Neutral
592 | To grow our emerging businesses to help us expand into key growth areas | 30 | 2021 | Growth | Expansion | Good
593 | To develop clear plans for each business and deliver margin growth. | 30 | 2021 | Growth | Strategy | Neutral
594 | Using our commercial excellence framework, plans were created and deployed that delivered growth in both sales and profitability | 31 | 2021 | Growth | Growth | Good
595 | Continuation in sales and profit growth plans | 31 | 2021 | Growth | Growth | Good
596 | Delivering sustainable growth is key to the Group’s strategy | 32 | 2021 | Growth | sustainability | Good
597 | The conversion of profit to cash is key to our growth strategy and for delivering increased shareholder value | 33 | 2021 | Growth | Conversion | Good
598 | This remains compatible with the 5 year Strategy and the longer-term objectives for our strategic growth pillars over a five-year period. | 36 | 2021 | Growth | Comparison | Neutral
599 | Marshalls continues to have strong market positions and a strategy of targeting those market areas where growth prospects are greatest | 36 | 2021 | Growth | Strategy | Good
600 | The Group continues to target those market areas where growth prospects are greatest, e.g. New Build Housing, Road, Rail and Water Management | 37 | 2021 | Growth | Market | Neutral
601 | Growth outstrips our ability to manage and stress test all aspects of our business model | 42 | 2021 | Growth | Growth | Neutral
602 | Develop strategies to manage growth | 42 | 2021 | Growth | Strategy | Neutral
603 | Revenue growth in the second half of the year was increasingly strong, and was 11 per cent ahead of the comparative figures for 2019. | 44 | 2021 | Growth | Revenue | Good
604 | The Group continues to focus on those market areas where future demand is expected to be greatest including New Build Housing, Road, Rail and Water Management. Infrastructure is expected to be a key element of construction growth in 2022 and 2023 | 45 | 2021 | Growth | Market | Good
605 | Those businesses that are not large enough to comprise separate operating segments include Marshalls Landscape Protection and Mineral Products and they continue to be a key strategic focus and a positive driver for growth. | 45 | 2021 | Growth | Focus | Good
606 | The construction of the dual block plant at St Ives is a major capital project for the Group, and represents a significant growth opportunity | 46 | 2021 | Growth | Growth | Neutral
607 | The Group has invested £109.4 million back into the business to generate growth, improve productivity and provide industry leading manufacturing facilities. | 48 | 2021 | Growth | Investment | Good
608 | The Group has a strong balance sheet with a good range of medium-term bank facilities available to fund investment initiatives to generate growth. | 48 | 2021 | Growth | Strength | Good
609 | Last year, we outlined our engagement with each of the four UN SDGs that we have identified as material to our business and our strategic objectives – SDG 8 for Decent Work and Economic Growth, SDG 11 for Sustainable Cities and Communities, SDG 12 for Responsible Consumption and Production and SDG 13 for Climate Action. | 55 | 2021 | Growth | sustainability | Good
610 | improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation | 55 | 2021 | Growth | Efficiency | Good
611 | The Marshalls Way, and the underpinning behaviours, has helped us to define our culture further. This investment into learning and development, as well as in other career growth areas, sets us up for a strong and successful future where individuals can find career satisfaction and thrive. | 67 | 2021 | Growth | Culture | Good
612 | Delivered successful profitable growth engagements with many well-known national and international brands. | 71 | 2021 | Growth | Growth | Good
613 | In November, we comprehensively reviewed the Group’s 5 year Strategy, ensuring it positions us to capitalise on high-growth sectors, having considered the contextual, societal and macro-economic trends that may be risks or opportunities to the business. | 74 | 2021 | Growth | Strategy | Neutral
614 | The Board has reflected upon and updated the matters reserved for the Board’s judgement to ensure they reflect the growth of the business in recent years. | 74 | 2021 | Growth | Governance | Neutral
615 | These steps clearly demonstrate how dynamic decision making is central to the way the Board and senior management team have managed the ongoing impact of the pandemic, alongside ensuring the Group is well positioned for future growth. | 75 | 2021 | Growth | Decision making | Good
616 | The strategic review considered all investment and growth opportunities, both organic and through acquisitions, together with the enablers that underpin these | 82 | 2021 | Growth | Strategy | Neutral
617 | Undertook a comprehensive review of Executive and Non-Executive Director remuneration, taking into account the growth in size and complexity of the business, the pay and benefits of colleagues across the Group and relevant comparator groups. | 92 | 2021 | Growth | Remuneration | Neutral
618 | The Chair has historically been positioned below the lower quartile of the market, which the Committee does not consider to be appropriate given the growth in size and increasing complexity of the business and her experience. | 95 | 2021 | Growth | Remuneration | Bad
619 | During her tenure, the Chair has successfully navigated the Group through the challenges it has faced, overseen record growth and led a comprehensive strategic review of the business. | 95 | 2021 | Growth | Leadership | Good
620 | The use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving profitable growth in accordance with the Company strategy | 96 | 2021 | Growth | Strategy | Neutral
621 | The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability. | 96 | 2021 | Growth | Growth | Good
622 | This ensures that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees nor in a way that promotes short-term, high-risk behaviour. | 96 | 2021 | Growth | Growth | Bad
623 | For those elements of remuneration provided in shares in 2020 and 2021, we have separated out their original value on grant and the additional value generated due to share price growth over the vesting period. | 96 | 2021 | Growth | Remuneration | Neutral
624 | During her tenure, the Chair has successfully navigated the Group through the challenges it has faced, overseen record growth and led a comprehensive strategic review of the business. | 100 | 2021 | Growth | Leadership | Good
625 | These calculations use cash flow projections based on a combination of individual financial three-year forecasts, containing assumptions for revenue growth and operational gearing, and appropriate long-term growth rates of 2.4 per cent. The long-term growth rate assumption reflects the long-term average growth rate for the UK economy. | 149 | 2021 | Growth | Forecast | Neutral
626 | Adjusted profit before tax up 3% against 2019 at £72.1 million (up 221% on 2020) | 1 | 2021 | Profit | Financial performance | Good
627 | Profit before tax on a statutory basis was £69.3 million (2020: £4.7 million; 2019: £69.9 million) | 1 | 2021 | Profit | Financial performance | Good
628 | Recovery has been strong: sales and operating profit for the year ended 31 December 2021 both exceeded 2019 results. | 10 | 2021 | Profit | Financial performance | Good
629 | The Group’s adjusted operating profit was £76.2 million (2020: £27.2 million; 2019: £73.7 million) and was 3 per cent ahead of the 2019 comparative. | 10 | 2021 | Profit | Financial performance | Good
630 | Statutory operating profit was £76.2 million (2020: £9.4 million; 2019 £73.7 million). | 10 | 2021 | Profit | Financial performance | Good
631 | We remain confident that our strategy will deliver profitable long-term growth and that we will be able to mitigate new material shortages and cost inflation through the effective management of the supply chain. | 11 | 2021 | Profit | Confidence | Good
632 | Strong trading performance in 2021 with record sales and adjusted profit exceeding the pre-pandemic levels from 2019 | 12 | 2021 | Profit | Performance | Good
633 | Strong trading performance with adjusted and statutory operating profit of £76.2 million (2019: £73.7 million) | 12 | 2021 | Profit | Financial performance | Good
634 | The Group’s adjusted operating profit was £76.2 million (2020: £27.2 million; 2019: £73.7 million) and was 3 per cent ahead of the 2019 comparative. The operating profit margin of 12.9 per cent for the year ended 31 December 2021 (2020: 5.8 per cent; 2019: 13.6 per cent) has been adversely impacted by the temporary effect of supply chain issues and by increased levels of overtime required as a consequence of labour shortages and absenteeism during the COVID-19 pandemic. | 13 | 2021 | Profit | Financial performance | Neutral
635 | Adjusted profit before tax was £72.1 million, before a non-cash pension interest charge of £2.8 million required under IAS 19 | 13 | 2021 | Profit | Financial performance | Neutral
636 | Statutory profit before tax was £2.8 million lower than the adjusted result at £69.3 million, reflecting the additional pension interest charge of £2.8 million (2020: £22.5 million; 2019: £69.9 million). | 13 | 2021 | Profit | Financial performance | Neutral
637 | To maintain a strong market position and grow the business’ profitability in all of the Group’s end markets | 30 | 2021 | Profit | Market | Good
638 | Sustainable improvement in profitability is a strategic priority. | 32 | 2021 | Profit | Financial performance | Good
639 | Strong profit performance despite increasingly challenging supply chain pressures. | 32 | 2021 | Profit | Financial performance | Good
640 | The conversion of profit to cash is key to our growth strategy and for delivering increased shareholder value | 33 | 2021 | Profit | Conversion | Good
641 | The reported operating profit for the year ended 31 December 2021 was £76.2 million after a number of adjusting items. | 46 | 2021 | Profit | Financial performance | Neutral
642 | These adjusting costs combine to give a net charge of £8.8 million, which approximately aligns with the profit on the sale of the site at Ryton. The profit on the disposal of property, plant and equipment is disclosed in Note 4 on pages 142 and 143 and the main element of this related to the Ryton site. The site was sold in October 2021 for £13.5 million and generated a net profit on disposal of £8.8 million. | 46 | 2021 | Profit | Financial performance | Neutral
643 | The operating profit margin was 12.9 per cent in the year ended 31 December 2021, which compares with 13.6 per cent for the same period in 2019 | 46 | 2021 | Profit | Financial performance | Bad
644 | The reported profit before tax of £69.3 million is after charging the pension adjustment which has arisen as a consequence of a legal opinion received from leading Counsel in relation to the payment of certain specific member benefits | 47 | 2021 | Profit | Financial performance | Bad
645 | After adjusting items, including the additional interest cost of £2.8 million, adjusted profit before tax for the year ended 31 December 2021 is £72.1 million (2019: £69.9 million), which represents an increase of 3 per cent against the 2019 comparative. | 47 | 2021 | Profit | Financial performance | Good
646 | TAH is a multipartner global big data platform, initially funded by IBM but now a not-for-profit enterprise in its own right. | 62 | 2021 | Profit | Technology | Neutral
647 | The Board acts boldly, decisively and collectively, applying its skill, knowledge and experience in ensuring the long‑term sustainability and profitability of the Group whilst bringing constructive challenge and debate to the table. | 70 | 2021 | Profit | Governance | Neutral
648 | The Group has delivered a strong trading performance in 2021 with record sales and adjusted profit in a very challenging market. | 93 | 2021 | Profit | Performance | Good
649 | EPS relates to our strategic objective to grow profits. Adjusted EPS was 28.6 pence in 2021 (2020: 8.6 pence; 2019: 29.4 pence) | 93 | 2021 | Profit | Strategy | Neutral
650 | the use of EPS under the MIP as the main performance condition ensures that the Executive Directors are focused on driving profitable growth in accordance with the Company strategy. The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability | 96 | 2021 | Profit | Strategy | Neutral
651 | This ensures that growth and profitability are not achieved in a way that is detrimental to the Company’s customers and employees nor in a way that promotes short-term, high-risk behaviour. | 96 | 2021 | Profit | sustainability | Neutral
652 | The most significant elements of the Company’s UK tax contribution are VAT, employer’s NI, corporation tax, fuel duty and aggregates levy. As profitability increases, corporation tax will also increase. | 102 | 2021 | Profit | Taxation | Neutral
653 | Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of their profit or loss for that period. | 115 | 2021 | Profit | Compliance | Good
654 | the Financial Statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole | 115 | 2021 | Profit | Reporting | Neutral
655 | the Financial Statements of Marshalls plc (the “Parent Company”) and its subsidiaries (the “Group”) give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2021 and of the Group’s profit for the year then ended; | 117 | 2021 | Profit | Reporting | Neutral
656 | The materiality that we used for the Group Financial Statements was £3.5 million which was determined on the basis of 5 per cent of profit before tax | 117 | 2021 | Profit | Materiality | Neutral
657 | Full scope audits were performed on all UK components. This accounts for 95 per cent of Group revenue, 100 per cent of Group net assets and 94 per cent of profit before tax generated by profit making entities | 117 | 2021 | Profit | Audit | Neutral
658 | Our approach to determining materiality has changed from using a number of metrics with focus on net assets, revenue and profit before tax to using 5 per cent of profit before tax. | 117 | 2021 | Profit | Materiality | Neutral
659 | 5 per cent of pre-tax profit. Materiality in the prior year was determined by considering a range of possible benchmarks with a particular focus on net assets, revenue and profit before tax, as well as the scale of the balance sheet and the overall size of the business. | 119 | 2021 | Profit | Materiality | Neutral
660 | In our professional judgement, profit before tax is the principal benchmark within the financial statements that is relevant to the users of the financial statements when assessing performance of the Group | 119 | 2021 | Profit | Performance | Neutral
661 | The Group audit team performed the entire audit of the significant UK component of the group. The UK components accounted for 95 per cent (2020: 95 per cent) of Group revenue, 100 per cent (2020: 100 per cent) of Group net assets and 94 per cent (2020: 93 per cent) of Group profit before tax generated by profit making entities. | 120 | 2021 | Profit | Audit | Neutral
662 | During our audit we obtained an understanding and tested the relevant controls within key business cycles. We have taken controls reliance over the revenue and customer rebates business cycles as these are key accounts that impact the Group’s profit. | 121 | 2021 | Profit | Audit | Neutral
663 | Income tax on the profit or loss for the year comprises current and deferred taxation. | 138 | 2021 | Profit | Taxation | Neutral
664 | Financial information for Landscape Products is now reported to the Group’s CODM for the assessment of segment profit performance and to facilitate resource allocation. | 138 | 2021 | Profit | Reporting | Neutral
665 | The accounting policies of the Landscape Products operating segment are the same as the Group’s accounting policies. Segment profit represents the profit earned without allocation of certain central administration costs that are not capable of allocation. | 141 | 2021 | Profit | Reporting | Neutral
666 | The majority of the Group’s profits are earned in the UK with the standard rate of corporation tax being 19 per cent for the year to 31 December 2021 | 145 | 2021 | Profit | Taxation | Neutral
667 | The different accounting treatment of fixed assets for tax and accounting purposes is one reason why the taxable income of the Group is not the same as its accounting profit. | 145 | 2021 | Profit | Taxation | Neutral
668 | Basic earnings per share from total operations of 27.5 pence (2020: 1.2 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, of £54,806,000 (2020: £2,370,000) by the weighted average number of shares in issue during the period of 199,094,964 (2020: 198,642,224) | 145 | 2021 | Profit | EPS | Neutral
669 | Basic earnings per share before adjusting items of 28.6 pence (2020: 8.6 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, of £56,948,000 (2020: £17,078,000) by the weighted average number of shares in issue during the period of 199,094,964 (2020: 198,642,224). | 145 | 2021 | Profit | EPS | Neutral
670 | Diluted earnings per share from total operations of 27.4 pence (2020: 1.2 pence) per share is calculated by dividing the profit for the financial year, after adjusting for non-controlling interests, of £54,806,000 (2020: £2,370,000) by the weighted average number of shares in issue during the period of 199,094,964 (2020: 198,642,224) plus potentially dilutive shares of 1,222,847 (2020: 1,614,132), which totals 200,317,811 (2020: 200,256,356) | 146 | 2021 | Profit | EPS | Neutral
671 | Diluted earnings per share before adjusting items of 28.4 pence (2020: 8.5 pence) per share is calculated by dividing the profit for the financial year, after adjusting for non-controlling interests, of £56,948,000 (2020: £17,078,000) by the weighted average number of shares in issue during the period of 199,094,964 (2020: 198,642,224) plus potentially dilutive shares of 1,222,847 (2020: 1,614,132), which totals 200,317,811 (2020: 200,256,356). | 146 | 2021 | Profit | EPS | Neutral
672 | The net profit for the Group of £1,484,000 has been disclosed within the net gain on asset and property disposals (Note 3). | 151 | 2021 | Profit | Financial performance | Neutral
673 | No profit and loss account is presented by the Company as permitted by Section 408 of the Companies Act 2006. | 168 | 2021 | Profit | Reporting | Neutral
674 | Income tax on the profit or loss for the year comprises current and deferred taxation | 169 | 2021 | Profit | Taxation | Neutral
675 | A deferred taxation asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised | 169 | 2021 | Profit | Asset | Neutral
676 | To ensure a strong alignment between the interests of management and our shareholders, a large proportion of management’s remuneration continues to be in shares which must be retained for up to five years. | 11 | 2021 | remuneration | Alignment | Good
677 | [NAME] retired from the Board following the Annual General Meeting in May 2021 having served on the Board since May 2015 as Senior Independent Non-Executive Director and Chair of the Remuneration Committee | 11 | 2021 | remuneration | Retirement | Bad
678 | Director and [NAME] was appointed as Chair of the Remuneration Committee | 11 | 2021 | remuneration | Appointment | Good
679 | Our goal is continuous improvement with the achievement of annual health and safety targets being linked to the remuneration of our Executive Directors and our senior management team. | 20 | 2021 | remuneration | Health and safety | Good
680 | The Chair and the Remuneration Committee Chair meet annually with the governance teams of our key shareholders to ensure their views are reflected in how we make decisions, operate our business and evolve our strategy | 21 | 2021 | remuneration | Engagement | Neutral
681 | Executive remuneration for carbon reduction targets | 57 | 2021 | remuneration | sustainability | Good
682 | 2021 progress: Appointment of Sustainability Improvement Director to drive implementation of our sustainability strategy, and plans for executive remuneration for carbon reduction. | 58 | 2021 | remuneration | sustainability | Good
683 | The achievement of annual health and safety improvement targets is directly linked to the remuneration of the Executive Directors and senior management, as explained in the Remuneration Report | 68 | 2021 | remuneration | Remuneration | Good
684 | Senior Independent Non-Executive Director and Chair of the Remuneration Committee of Bunzl plc, Non-Executive Director and Chair of the Remuneration and CSR Committees of Manchester Airports Group and Non‑ Executive Director and Chair of Yorkshire Water. - Tim Pile | 70 | 2021 | remuneration | Directorship | Neutral
685 | Director of the Mineral Products Association. Non-Executive Director and Chair of the Remuneration Committee of Eurocell plc. [NAME] | 70 | 2021 | remuneration | Directorship | Neutral
686 | Non-Executive Director and Chair of the Remuneration Committee of Churchill China PLC. Non-Executive Director and Chair of the Remuneration and ESG Committees of Harworth Group PLC [NAME] | 70 | 2021 | remuneration | Directorship | Neutral
687 | [NAME], and our Senior Independent Non-Executive Director and Remuneration Committee Chair, [NAME] | 72 | 2021 | remuneration | Directorship | Neutral
688 | Engaged with shareholders to understand their views on our application of the Remuneration Policy | 76 | 2021 | remuneration | Engagement | Neutral
689 | Remuneration outcomes aligned with interests of all stakeholders | 76 | 2021 | remuneration | Alignment | Neutral
690 | The Board delegates specific responsibilities to the Audit, Remuneration and Nomination Committees. | 77 | 2021 | remuneration | Delegation | Good
691 | The Remuneration Report on pages 92 to 112 explains how the Group’s Remuneration Policy has been implemented and shows Directors’ remuneration for 2021. | 77 | 2021 | remuneration | Remuneration | Neutral
692 | The Remuneration Report on pages 92 to 112 explains how the Group’s Remuneration Policy has been implemented and shows Directors’ remuneration for 2021 | 77 | 2021 | remuneration | Transparency | Neutral
693 | The Remuneration Report also provides gender pay and balance information | 77 | 2021 | remuneration | Transparency | Neutral
694 | The current Remuneration Policy was approved by shareholders in 2020 and is set out in the Directors’ Remuneration Report on pages 64 to 76 of our 2019 Annual Report and Accounts | 83 | 2021 | remuneration | Policy | Neutral
695 | The Remuneration Committee Report describes how the Remuneration Policy has been implemented during 2021 and the outcomes achieved. It also describes how the Remuneration Committee has carried out its responsibilities during the year | 83 | 2021 | remuneration | Governance | Neutral
696 | Our Remuneration Policy rewards strong performance with a balanced set of measures that reflect our commitment to create better futures for everyone | 92 | 2021 | remuneration | performance | Good
697 | Oversight of a review of the wider Group remuneration and reward strategy looking at the alignment of pay policies and terms and conditions | 92 | 2021 | remuneration | Oversight | Neutral
698 | Assess whether our engagement plan with employees and other stakeholders on remuneration remains effective. | 92 | 2021 | remuneration | Assessment | Neutral
699 | The CEO attends the Committee meetings by invitation but may not participate in discussions about his own remuneration. | 92 | 2021 | remuneration | Governance | Neutral
700 | As the new Chair of Marshalls’ Remuneration Committee, I am pleased to set out in this report how the Committee has carried out its objectives and responsibilities during 2021 | 93 | 2021 | remuneration | Leadership | Good
701 | We have updated our Annual Remuneration Report to make accessing the key points of information as straightforward as possible. | 93 | 2021 | remuneration | Transparency | Good
702 | The Remuneration Committee continues to believe that the Remuneration Policy approved at the 2020 AGM provides strong alignment with shareholders’ interests and therefore is not planning any changes to its operation during 2022, with the exception of a modification to the non-financial metrics for our incentive schemes. | 93 | 2021 | remuneration | Stability | Neutral
703 | Justin Lockwood was appointed to the Board as Chief Financial Officer on 26 July 2021. The table below sets out a summary of the remuneration arrangements on appointment, | 94 | 2021 | remuneration | Appointment | Good
704 | a base salary increase would ensure his remuneration remains competitive and is commensurate with his role and determined on a basis consistent with the remuneration of the Group’s new CFO. The Remuneration Committee considered awarding the entire increase in 2021 but felt it appropriate to apply the increase in two stages, with a 6 per cent increase effective from January 2021, and a further 8 per cent increase effective from January 2022. | 94 | 2021 | remuneration | Remuneration | Neutral
705 | The Committee has provided the Chair with increases aligned to those of the colleagues across the Group since her appointment, but feels that, at this time, it is appropriate to align her fee with the market to ensure that her strong leadership and performance are reflected in her remuneration | 95 | 2021 | remuneration | Alignment | Neutral
706 | the Remuneration Committee considers remuneration and terms and conditions for colleagues across the Group | 95 | 2021 | remuneration | Consideration | Neutral
707 | As part of our annual shareholder engagement programme, the [NAME] and I met with key shareholders in November and December 2021 to understand their current views on how we apply our Remuneration Policy, as well as remuneration matters more generally. | 95 | 2021 | remuneration | Engagement | Neutral
708 | Our Remuneration Report has been prepared in accordance with the Companies Act 2006 and Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013. | 95 | 2021 | remuneration | Compliance | Neutral
709 | The following charts summarise the single figure of remuneration for 2021 in comparison with 2020 and with the minimum, target and maximum remuneration scenarios from the 2020 Remuneration Policy to show how the actual remuneration compares to the Policy remuneration. For those elements of remuneration provided in shares in 2020 and 2021, we have separated out their original value on grant and the additional value generated due to share price growth over the vesting period | 96 | 2021 | remuneration | Comparison | Neutral
710 | It is the Committee’s view that one of the key objectives of equity based remuneration is to align Executives’ interests and those of shareholders. With such a high proportion of MIP awards expressed in or linked to shares, the impact of share price movement on overall Executive reward can be significant. | 96 | 2021 | remuneration | Alignment | Neutral
711 | As the business has grown, the scale, complexity and levels of responsibility of the Executive Directors have increased. This is reflected in the CFO’s remuneration package on recruitment and the adjustment we have made to the CEO’s remuneration, | 97 | 2021 | remuneration | Growth | Neutral
712 | The ability for the Directors to gain and lose, dependent on the share price performance of the Company, at a level which is material to their total remuneration, is a key facet of the Company’s Remuneration Policy. | 97 | 2021 | remuneration | Alignment | Neutral
713 | whether a benchmarking exercise is appropriate (using salaries within the ranges paid by the companies in the comparator groups for remuneration benchmarking). | 98 | 2021 | remuneration | Benchmarking | Neutral
714 | Pension allowances are excluded for the purposes of calculating any other element of remuneration based on a percentage of salary | 98 | 2021 | remuneration | Exclusion | Neutral
715 | Annual performance conditions and targets are set at the beginning of the Plan year by reference to financial, strategic and operational objectives by the Remuneration Committee | 99 | 2021 | remuneration | performance | Neutral
716 | The Committee has provided the Chair with increases aligned to those given to the majority of colleagues across the Group since her appointment, but feels that, at this time, it is appropriate to align her fee with the market to ensure that her strong leadership and performance are reflected in her remuneration. | 100 | 2021 | remuneration | Alignment | Neutral
717 | Justin Lockwood joined the Board as Chief Financial Officer on 26 July 2021. His single total figure of remuneration elements therefore reflect his time on the Board since then | 101 | 2021 | remuneration | Appointment | Neutral
718 | the Committee’s approach to the review of wider workforce pay policies and how it has taken these into consideration in setting remuneration; | 105 | 2021 | remuneration | Alignment | Neutral
719 | comparison metrics relating to Executive and employee remuneration | 105 | 2021 | remuneration | Comparison | Neutral
720 | Reporting is prepared on an annual basis to show details of all elements of remuneration for all members of the workforce (excluding temporary and agency staff and consultants). | 105 | 2021 | remuneration | Reporting | Neutral
721 | As Chair of the Remuneration Committee and designated Non-Executive Director for employee engagement, [NAME] attends the Employee Voice Group (“EVG”). The EVG meets six times a year and, amongst other things, provides valuable input into new policy development around a range of topics including reward and remuneration policy. | 105 | 2021 | remuneration | Engagement | Good
722 | whether the element of remuneration is consistent with the Company’s remuneration principles | 105 | 2021 | remuneration | Consistency | Neutral
723 | The Committee uses its annual review of the wider workforce remuneration and incentives to inform the approach applied to the remuneration of the Executive Directors and senior management. | 105 | 2021 | remuneration | Alignment | Neutral
724 | the approach to the remuneration of the Executive Directors and senior management is consistent with that applied to the wider workforce. | 105 | 2021 | remuneration | Consistency | Neutral
725 | The Committee provided oversight in connection with the Group’s comprehensive review of HGV driver pay during the year, which resulted in a significant pay increase for HGV drivers working in the Landscape Products business to ensure our remuneration packages fairly reward them and reflect current market pay levels effective from 1 January 2022. | 106 | 2021 | remuneration | Oversight | Good
726 | In summary, the Committee is satisfied that the approach to remuneration across the Company is consistent with the Company’s principles of remuneration. Further, in the Committee’s opinion, the approach to Executive remuneration aligns with wider Company pay policy and there are no anomalies specific to the Executive Directors. | 106 | 2021 | remuneration | Alignment | Neutral
727 | The Remuneration Committee has always been committed to ensuring that CEO reward is commensurate with performance. The chart shows a clear alignment between shareholder returns and CEO single figure pay. | 107 | 2021 | remuneration | Alignment | Good
728 | The Committee is satisfied that the underlying picture does not show a divergence trend between the CEO remuneration and employees generally, i.e. excluding share price volatility, the relationship with employee pay is consistent. | 107 | 2021 | remuneration | Consistency | Good
729 | Where the base structure of remuneration is similar, for example on comparison between the Executive Committee pay and that of the CEO, the ratio is much more stable over time | 107 | 2021 | remuneration | Stability | Neutral
730 | In accordance with The Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019, the table below shows the percentage change in Executive Director and Non-Executive Director total remuneration compared to the change for the average of UK-based employees of the Group excluding Executive Directors and Non-Executive Directors. | 108 | 2021 | remuneration | Compliance | Neutral
731 | Executive Directors are permitted to hold one external plc board appointment and may retain any remuneration received in that capacity. | 112 | 2021 | remuneration | Directorship | Neutral
732 | The Remuneration Committee was advised during the year by external remuneration adviser PricewaterhouseCoopers LLP (“PwC”). PwC attends meetings of the Committee by invitation. | 112 | 2021 | remuneration | Advisory | Neutral
733 | The Committee is satisfied that the remuneration advice from PwC is objective and independent based on the separation of the team advising the Committee from any other work undertaken by PwC for the Group and the fact that PwC is a signatory to the Remuneration Consultants Group’s Code of Conduct | 112 | 2021 | remuneration | Assurance | Good
734 | Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that comply with that law and those regulations. | 115 | 2021 | remuneration | Responsibility | Neutral
735 | the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration policies, key drivers for Directors’ remuneration, bonus levels and performance targets; | 122 | 2021 | remuneration | Consideration | Neutral
736 | In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006 | 123 | 2021 | remuneration | Compliance | Neutral
737 | In addition to their salaries and pension allowances, the Group also provides non-cash benefits to Directors. Further details in relation to Directors are disclosed in the Remuneration Committee Report | 164 | 2021 | remuneration | Remuneration | Neutral
738 | Details of Directors’ remuneration, share options, long‑term incentive plans and Directors’ pension entitlements are disclosed on pages 101 to 105 of the Remuneration Committee Report | 169 | 2021 | remuneration | Remuneration | Neutral
739 | Revenue growth of 22% over 2021 which included eight months’ contribution from the acquisition of Marley; growth of 1% on a like-for-like basis | 1 | 2022 | Growth | Growth | Good
740 | Our mission is to deliver sustainable growth through a brand that drives customer specification of innovative product solutions for the built environment | 2 | 2022 | Growth | sustainability | Good
741 | Our objective is to deliver sustainable growth, whilst maintaining a strong balance sheet with a flexible capital structure and a clear capital allocation policy | 4 | 2022 | Growth | Strategy | Good
742 | Strong growth in infrastructure forecast over the medium term | 5 | 2022 | Growth | Growth | Good
743 | Capital expenditure of £180 million since 2014 to generate growth | 6 | 2022 | Growth | Investment | Good
744 | Expand into new growth areas | 7 | 2022 | Growth | Expansion | Good
745 | Achieve sustainable growth | 7 | 2022 | Growth | Growth | Good
746 | Innovative solutions to deliver growth | 7 | 2022 | Growth | Innovation | Good
747 | Strong cumulative annual growth rates across all metrics | 7 | 2022 | Growth | Growth | Good
748 | Consistent dividend growth | 7 | 2022 | Growth | Dividend | Good
749 | Underpinned by eight strategic growth pillars | 7 | 2022 | Growth | Strategy | Neutral
750 | Group revenue for the year ended 31 December 2022 was £719.4 million (2021: £589.3 million), which represents year-on-year growth of 22 per cent including the benefit of the acquisition of [NAME]. This is a record annual revenue for the Group. On a like-for-like basis, Group revenue growth was one per cent | 8 | 2022 | Growth | Acquistion | Good
751 | We continue to focus on our key growth pillars whilst flexing our approach to reflect the macro-economic backdrop. | 9 | 2022 | Growth | Strategy | Neutral
752 | ESG strategy continues to generate organic growth opportunities which, going forward, will be a source of competitive advantage | 9 | 2022 | Growth | Strategy | Good
753 | The Board remains confident that the Group is well placed to deliver profitable long-term growth when market conditions improve and continues to focus on its key strategic initiatives | 9 | 2022 | Growth | Confidential | Good
754 | Revenue growth was 18 per cent, including the benefit of [NAME], but on a like-for-like basis revenue contracted by 10 per cent. | 9 | 2022 | Growth | Growth | Neutral
755 | The increased diversification from both [NAME] and the strong growth experienced by our other recent acquisitions in building materials and water management has meant that the Group now operates in three main market areas | 10 | 2022 | Growth | Diversification | Good
756 | Marshalls Building Products reported revenue growth of 17 per cent to £193.1 million (2021: £164.5 million). | 11 | 2022 | Growth | Financial performance | Good
757 | Marley Roofing Products delivered revenue of £132.2 million in the post-acquisition period, which represents a growth of six per cent compared to the corresponding period in 2021. | 11 | 2022 | Growth | Financial performance | Good
758 | The business traded ahead of our original expectations with segment operating profit in the post-acquisition period being £34.4 million, which is an increase of one per cent compared with the prior period, with solar roofing in particular showing good growth. | 11 | 2022 | Growth | Financial performance | Good
759 | We continue to generate a good pipeline of capital investment projects that will drive future organic growth and we are now planning for capital investment of £25 million in 2023. | 11 | 2022 | Growth | Investment | Good
760 | The acquisition of [NAME] accelerates this strategy by broadening the Group’s product range and strengthening its market position, and provides a strong platform for future growth | 12 | 2022 | Growth | Acquistion | Good
761 | The acquisition of Marley, and the strong growth in Marshalls’ emerging businesses in recent years, has created the opportunity to report under three separate reporting segments. | 12 | 2022 | Growth | Acquistion | Good
762 | The CPA forecast that the Construction Industry will return to growth in 2024 | 14 | 2022 | Growth | Forecast | Good
763 | UK construction market forecast to contract in 2023 but longer-term structural growth drivers remain positive | 14 | 2022 | Growth | Market | Neutral
764 | The new build housing sector was very resilient in 2022 and the CPA’s winter forecast estimates volume growth of 2.4 per cent in 2022 | 14 | 2022 | Growth | Market | Good
765 | This forecast was driven by the structural deficit in new house building compared to Government targets, a positive employment market and house price growth exceeding build cost inflation. | 14 | 2022 | Growth | Market | Good
766 | The CPA forecast that the construction industry will return to growth in 2024 as the macro-economic environment improves | 14 | 2022 | Growth | Forecast | Bad
767 | Output in these end markets is forecast to contract in 2023 by 1.1 per cent with weakness in commercial and other RMI activity partially offset by continued growth in infrastructure output. | 15 | 2022 | Growth | Market | Neutral
768 | The Board believe that the construction market continues to have attractive medium and long-term growth potential driven by the structural deficit in new housebuilding, an ageing housing stock that requires increased repair and maintenance and the need to continue improving UK infrastructure | 15 | 2022 | Growth | Market | Good
769 | the Board remains confident that the Group is well placed to deliver profitable long-term growth when market conditions improve. | 15 | 2022 | Growth | Market | Neutral
770 | On a like-for-like basis, Group revenue increased by one per cent, with revenue growth in Marshalls Building Products and [NAME] being largely offset by a contraction in Marshalls Landscape Products. | 16 | 2022 | Growth | Growth | Neutral
771 | Group adjusted operating profit was £101.1 million, which represents growth of 31 per cent, and this increase was driven by the benefit of Marley from 29 April 2022 together with a strong performance from Marshalls Building Products. | 16 | 2022 | Growth | Financial performance | Good
772 | It delivered a strong performance in 2022 and reported revenue of £193.1 million, which represents year-on-year growth of 17 per cent. | 21 | 2022 | Growth | performance | Good
773 | The adjusted operating margin increased by 2.0 ppts to 13.9 per cent reflecting the operational leverage benefit of higher revenues and offsetting the rate of growth in overheads | 21 | 2022 | Growth | Financial performance | Good
774 | Revenue growth in the period was principally driven by a strong performance by our roofintegrated solar panel business, which benefited from the trend towards energy efficient solutions in the face of energy price inflation. | 22 | 2022 | Growth | performance | Good
775 | However, we expect to see continued strong growth in roof-integrated solar panels due to increased penetration in RMI projects and changes in building regulations that require new build houses to achieve increased energy efficiency targets. | 22 | 2022 | Growth | Growth | Good
776 | The annual strategic reviews conducted by the Board (the most recent being in November 2022), and the consideration of at least one of our strategic growth pillars at each Board meeting, focus on the long-term sustainable success of the Group and our impact on key stakeholders. | 26 | 2022 | Growth | Strategy | Neutral
777 | Customer centricity and sustainable materials supply are both strategic growth pillars of the business. | 27 | 2022 | Growth | Strategy | Good
778 | Our strategic growth pillars underpin our purpose, mission and strategy | 27 | 2022 | Growth | Strategy | Good
779 | The fulfilment of the Board’s duty under Section 172(1) sits alongside its consideration of the Group’s capital structure and capital allocation policy and its resilience to existing and emerging risks (pages 66 to 75), which have all been reviewed in light of the Group’s performance during the year and its future growth aspirations. | 29 | 2022 | Growth | Governance | Neutral
780 | Board presentations on growth pillars dependent on our engagement and relationships with key suppliers | 30 | 2022 | Growth | Engagement | Neutral
781 | The Board made a number of key decisions during 2022 that required a balanced consideration of our strategic growth pillars, the long-term sustainable growth of our business and the interests of stakeholders. | 32 | 2022 | Growth | Decision making | Neutral
782 | Marshalls has a strong track record of delivering organic growth whilst also making successful complementary acquisitions that have enhanced its product offering as part of its strategic goal to become the UK’s leading manufacturer of products for the built environment | 34 | 2022 | Growth | Growth | Good
783 | Harnessing and sharing these skills will support the development and growth of both the [NAME] and [NAME] businesses and has already created new opportunities for colleagues in both businesses | 35 | 2022 | Growth | Development | Good
784 | Focused strategy to deliver sustainable growth | 36 | 2022 | Growth | Strategy | Neutral
785 | To ensure all businesses are set up to achieve sustainable growth | 37 | 2022 | Growth | sustainability | Good
786 | To expand into further growth areas | 37 | 2022 | Growth | Expansion | Good
787 | To deliver margin growth | 37 | 2022 | Growth | Financial performance | Neutral
788 | To develop new innovative products that will deliver growth | 39 | 2022 | Growth | Innovation | Good
789 | Delivering sustainable growth is key to the Group’s strategy | 40 | 2022 | Growth | sustainability | Good
790 | The conversion of profit to cash is key to our growth strategy and for delivering increased shareholder value | 41 | 2022 | Growth | Conversion | Good
791 | This allows us to benchmark ourselves, give context to stakeholders and allows for business growth. | 52 | 2022 | Growth | Benchmarking | Good
792 | They’ve provided deep insight into the core focus areas from the employee surveys – personal growth and development and employee wellbeing – and helped the business build a tangible action plan that will make a difference to all colleagues | 55 | 2022 | Growth | Engagement | Good
793 | Personal growth and development have been highlighted, through our employee surveys, as a key area of focus | 55 | 2022 | Growth | Development | Good
794 | Revenue growth of 1% on a like-for-like basis | 60 | 2022 | Growth | Revenue | Neutral
795 | Group revenue for the year ended 31 December 2022 was £719.4 million (2021: £589.3 million), which is 22 per cent higher than 2021 including the benefit of Marley’s revenue following the acquisition. On a like-for-like basis, Group revenue growth was one per cent | 60 | 2022 | Growth | Acquistion | Good
796 | The growth in adjusted operating profit for the Group of 31 per cent was largely driven by the benefit of Marley from 29 April 2022 together with a strong performance from Marshalls Building Products. | 61 | 2022 | Growth | Financial performance | Good
797 | Strong conversion of EBITDA into operating cash flow is expected to support the Group’s capital allocation priorities going forward, including continued investment in organic growth opportunities, new product development, dividend payments and progressive deleveraging. | 63 | 2022 | Growth | Investment | Good
798 | The Group has invested £153.4 million back into the business to generate growth, improve productivity and provide industry leading manufacturing facilities | 63 | 2022 | Growth | Investment | Good
799 | This remains compatible with the five-year Strategy and the longerterm objectives for our strategic growth pillars over a five-year period. | 68 | 2022 | Growth | Alignment | Neutral
800 | The Group continues to focus on those market areas where growth prospects are greatest. | 69 | 2022 | Growth | Focus | Good
801 | Develop strategies to manage growth. | 74 | 2022 | Growth | Strategy | Neutral
802 | We welcomed [NAME] to the Board as Chief Operating Officer, recognising [NAME]’s contribution and performance, over a number of years, in driving so many of our growth pillars, including operational and logistics excellence, sustainable supply and new product innovation | 80 | 2022 | Growth | Leadership | Good
803 | On [NAME] appointment to the Board as Chief Operating Officer in April 2022, our female representation dropped to 38 per cent, by virtue of the Board’s growth. | 82 | 2022 | Growth | Diversity | Neutral
804 | Well-executed succession plan, with additional growth in the Board rewarding performance | 83 | 2022 | Growth | Succession planning | Good
805 | During 2022, the EVG covered many topics including performance and talent management, pensions governance, learning and personal growth and our manufacturing capacity reduction project. | 85 | 2022 | Growth | Governance | Neutral
806 | [NAME]’s contribution and performance, over several years, in driving so many of our growth pillars, including operational and logistics excellence, sustainable supply and new product innovation | 93 | 2022 | Growth | Leadership | Good
807 | Remuneration arrangements for Executive Directors provide an appropriate balance of fixed and variable remuneration with a focus on long-term growth | 100 | 2022 | Growth | Remuneration | Neutral
808 | It has created a diverse business with more growth opportunities, and significantly changed the size of the roles of the leadership team and increased their responsibilities. | 102 | 2022 | Growth | Expansion | Good
809 | The use of EPS as the main MIP performance condition ensures that the Executive Directors are focused on driving profitable growth in accordance with the Company strategy. The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability | 104 | 2022 | Growth | performance | Good
810 | This ensures that growth and profitability are not achieved in a way that is detrimental to the Company’s environmental commitments or employees nor in a way that promotes short-term, high-risk behaviour. | 104 | 2022 | Growth | sustainability | Good
811 | investment – the Company’s strategy is to invest in organic growth opportunities in order to ensure that the business grows in a sustainable manner with a corresponding long-term benefit for all stakeholders; | 120 | 2022 | Growth | Investment | Good
812 | This chart shows the Group’s total shareholder return (“TSR”) performance compared to: (i) the FTSE Small Cap Index; and (ii) the FTSE 250. TSR is defined as share price growth plus reinvested dividends | 127 | 2022 | Growth | performance | Neutral
813 | Like-for-like revenue growth is revenue growth generated by the business assuming that acquired businesses had been part of the Group for the comparative period in the previous year. This provide users with an understanding about revenue growth that is not impacted by acquisitions. | 157 | 2022 | Growth | performance | Neutral
814 | These calculations use cash flow projections based on a combination of individual financial three-year forecasts, containing assumptions for revenue growth and operational gearing, and appropriate long-term growth rates of 2.4 per cent. The long-term growth rate assumption reflects the long-term average growth rate for the UK economy. | 169 | 2022 | Growth | Forecast | Neutral
815 | Adjusted operating profit of £101.1 million, an increase of 31% on 2021 reflecting the benefit of the [NAME] acquisition (statutory operating profit; £47.9 million, 2021: £76.2 million) | 1 | 2022 | Profit | Financial performance | Good
816 | Adjusted profit before tax of £90.4 million, an increase of 23% on 2021 | 1 | 2022 | Profit | Financial performance | Good
817 | Profit before tax on a statutory basis was £37.2 million (2021: £69.3 million), including the impact of adjusting items of £53.2 million | 1 | 2022 | Profit | Financial performance | Bad
818 | The acquisition of Marley is a transformational step for the business and in 2022 this helped the Group deliver record adjusted profits and earnings per share | 4 | 2022 | Profit | Acquistion | Good
819 | Record adjusted profit before tax of £90.4 million, despite tough market conditions (statutory profit before tax: £37.2 million) | 8 | 2022 | Profit | performance | Good
820 | The Group’s adjusted operating profit was £101.1 million (2021: £77.4 million) and statutory operating profit was £47.9 million | 8 | 2022 | Profit | Financial performance | Neutral
821 | The Board remains confident that the Group is well placed to deliver profitable long-term growth when market conditions improve and continues to focus on its key strategic initiatives | 9 | 2022 | Profit | Confidential | Good
822 | The Group delivered record sales and adjusted profit during 2022 | 10 | 2022 | Profit | performance | Good
823 | Adjusted profit before tax of £90.4 million, despite a challenging market backdrop (statutory profit before tax: £37.2 million) | 10 | 2022 | Profit | Resilience | Good
824 | 2022 has seen a record performance for [NAME] in terms of both revenue and adjusted profit before tax, in spite of challenging market conditions which adversely impacted our Landscape Products business | 10 | 2022 | Profit | performance | Good
825 | Segment operating profit reduced by £17.1 million to £45.3 million compared with 2021 and this resulted in operating margins reducing to 11.5 per cent (2021: 14.7 per cent) | 11 | 2022 | Profit | Financial performance | Bad
826 | Segment operating profit increased by £7.2 million to £26.8 million compared with 2021 and this resulted in operating margins increasing to 13.9 per cent (2021: 11.9 per cent). | 11 | 2022 | Profit | Financial performance | Good
827 | The business traded ahead of our original expectations with segment operating profit in the post-acquisition period being £34.4 million, which is an increase of one per cent compared with the prior period, with solar roofing in particular showing good growth | 11 | 2022 | Profit | performance | Good
828 | The Group’s adjusted operating profit was £101.1 million (2021: £77.4 million) and the resulting Group adjusted operating profit margin was 14.1 per cent for the year ended 31 December 2022 | 11 | 2022 | Profit | Financial performance | Good
829 | The reported operating profit for the year ended 31 December 2022 is £47.9 million including adjusted items totalling £53.2 million. | 11 | 2022 | Profit | Financial performance | Neutral
830 | Adjusted profit before tax was £90.4 million (2021: £73.3 million). Reported profit before tax, after adjusting items of £53.2 million, was £37.2 million (2021: £69.3 million) | 11 | 2022 | Profit | Financial performance | Neutral
831 | the Board remains confident that the Group is well placed to deliver profitable long-term growth when market conditions improve | 14 | 2022 | Profit | Confidence | Good
832 | Adjusted profit before tax was £90.4 million (2021: £73.3 million). Statutory profit before tax was £37.2 million (2021: £69.3 million), reflecting the impact of the adjusting items. | 16 | 2022 | Profit | Comparison | Neutral
833 | Group adjusted operating profit was £101.1 million, which represents growth of 31 per cent, and this increase was driven by the benefit of Marley from 29 April 2022 together with a strong performance from Marshalls Building Products. | 16 | 2022 | Profit | Growth | Good
834 | This has been partially offset by Marshalls Landscape Products, where the impact of a softer private housing RMI market compared to the elevated levels reported in 2021 and the effect of higher prices suppressing demand, resulted in sharply lower volumes and profitability | 16 | 2022 | Profit | Financial performance | Bad
835 | Statutory operating profit was £47.9 million (2021: £76.2 million). | 16 | 2022 | Profit | Financial performance | Bad
836 | Segment operating profit reduced by £17.1 million to £45.3 million. This was driven by the combined effect of lower volumes on gross profit and a significant reduction in the operational efficiency of manufacturing network due to reduced production volumes | 18 | 2022 | Profit | Growth | Bad
837 | Segment operating profit increased by £7.2 million to £26.8 million. The businesses operated in an inflationary environment in 2022 driven by escalating energy and commodity prices and was successful in recovering these through sales price increases during the year. | 21 | 2022 | Profit | Financial performance | Good
838 | Segment operating profit in the post-acquisition period was £34.4 million, which represents an increase of one per cent compared to the corresponding period, preownership, in 2021. | 22 | 2022 | Profit | Growth | Neutral
839 | To continue sales and profit growth plans | 37 | 2022 | Profit | Expansion | Good
840 | Sustainable improvement in profitability is a strategic priority | 40 | 2022 | Profit | Strategy | Neutral
841 | Robust profit performance despite increasingly challenging market and cost inflation. Statutory profit before tax was £37.2 million, including the impact of adjusting items | 40 | 2022 | Profit | Resilience | Neutral
842 | The conversion of profit to cash is key to our growth strategy and for delivering increased shareholder value | 41 | 2022 | Profit | Conversion | Good
843 | Adjusted operating profit of £101.1 million, up 31% on 2021 (statutory basis: £47.9 million) | 60 | 2022 | Profit | Improvement | Good
844 | Adjusted profit before tax of £90.4 million - an increase of 23% on 2021 | 60 | 2022 | Profit | Growth | Good
845 | Profit before tax on a statutory basis of £37.2 million (2021: £69.3 million) | 60 | 2022 | Profit | Growth | Bad
846 | The growth in adjusted operating profit for the Group of 31 per cent was largely driven by the benefit of Marley from 29 April 2022 together with a strong performance from Marshalls Building Products. | 61 | 2022 | Profit | Expansion | Good
847 | This has been partially offset by Marshalls Landscape Products, where the impact of a softer Private Housing RMI market compared to the elevated levels reported in 2021 and reduced commercial sales resulted in sharply lower volumes and profitability. | 61 | 2022 | Profit | Growth | Bad
848 | Adjusted operating profit increased to £101.1 million (2021: £77.4 million). | 61 | 2022 | Profit | Growth | Good
849 | The net effect of reduced operating profit and increased interest is mitigated by reduced tax and dividend cash flows | 68 | 2022 | Profit | Growth | Neutral
850 | EPS relates to our strategic objective to grow profits. | 102 | 2022 | Profit | Financial performance | Good
851 | The use of EPS as the main MIP performance condition ensures that the Executive Directors are focused on driving profitable growth in accordance with the Company strategy. The OCF to EBITDA ratio ensures that this growth in profit is not at the expense of its quality and sustainability | 104 | 2022 | Profit | performance | Neutral
852 | This ensures that growth and profitability are not achieved in a way that is detrimental to the Company’s environmental commitments or employees nor in a way that promotes short-term, high-risk behaviour. | 104 | 2022 | Profit | sustainability | Good
853 | As profitability increases, corporation tax will also increase. In 2022 the Group was re-accredited with the Fair Tax Mark | 120 | 2022 | Profit | Taxation | Neutral
854 | Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of their profit or loss for that period | 133 | 2022 | Profit | Compliance | Neutral
855 | the Financial Statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; | 133 | 2022 | Profit | Compliance | Neutral
856 | the Financial Statements of Marshalls plc (the “Parent Company”) and its subsidiaries (the “Group”) give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2022 and of the Group’s profit for the year then ended | 135 | 2022 | Profit | Assurance | Neutral
857 | The materiality that we used for the Group Financial Statements was £4.3 million which was determined on the basis of 5 per cent of adjusted profit before tax. | 135 | 2022 | Profit | Materiality | Neutral
858 | Full scope audits were performed on all UK components. This accounts for 97 per cent of Group revenue, over 99 per cent of Group net assets and over 99 per cent of profit before tax. | 135 | 2022 | Profit | Audit | Neutral
859 | Materiality in the prior year was determined using statutory profit before tax without any adjustments, however given the significance of adjusting items in the current year | 137 | 2022 | Profit | Materiality | Neutral
860 | In our professional judgement, adjusted profit before tax is the principal benchmark within the Financial Statements that is relevant to the users of the Financial Statements when assessing the performance of the Group | 137 | 2022 | Profit | Benchmarking | Neutral
861 | Full scope audits were performed on all UK components, including the Marley Group. This accounts for 97 per cent (2021: 95 per cent) of group revenue, over 99 per cent (2021: 100 per cent) of group net assets and over 99 per cent (2021: 94 per cent) of profit before tax generated by profit making entities. | 138 | 2022 | Profit | Audit | Neutral
862 | We have taken controls reliance over the revenue and customer rebates business cycles within Marshalls UK, as these are key accounts that impact the Group’s profits | 139 | 2022 | Profit | Control | Neutral
863 | Income tax on the profit or loss for the year comprises current and deferred taxation. Income tax is recognised in the Consolidated Income Statement except to the extent that it relates to items recognised directly in other comprehensive income or in equity, in which case it is recognised accordingly | 156 | 2022 | Profit | Taxation | Neutral
864 | EBITA is earnings before interest, taxation and amortisation and provides users with further information about the profitability of the business before financing costs, taxation and amortisation. | 157 | 2022 | Profit | Financial performance | Neutral
865 | EBITDA is earnings before interest, taxation, depreciation and amortisation and provides users with further information about the profitability of the business before financing costs, taxation and non-cash charges | 157 | 2022 | Profit | Financial performance | Neutral
866 | Adjusted proforma pre-IFRS 16 EBITDA is earnings before interest, taxation, depreciation, amortisation (but not right-of-use asset depreciation), and after adding back adjusting items and profit or losses on the sale of property, plant and equipment and including EBITDA from 1 January to 28 April 2022 for [NAME] and is used to assess compliance with covenants in the Group’s bank facility | 157 | 2022 | Profit | Financial performance | Neutral
867 | The following table sets out statutory operating profit, profit before tax and profit after tax and the impact of adding back adjusting items. Details of the adjusting items are set out in Note 4 | 158 | 2022 | Profit | Financial performance | Neutral
868 | Segment profit represents the profit earned without allocation of certain central administration costs that are not capable of allocation. | 160 | 2022 | Profit | Segment | Neutral
869 | The majority of the Group’s profits are earned in the UK with the standard rate of corporation tax being 19 per cent for the year to 31 December 2022. | 165 | 2022 | Profit | Taxation | Neutral
870 | The different accounting treatment of fixed assets for tax and accounting purposes is one reason why the taxable income of the Group is not the same as its accounting profit | 165 | 2022 | Profit | Taxation | Bad
871 | In total, the trading profits were not material and a minimal amount of tax is due to be paid overseas | 165 | 2022 | Profit | Taxation | Neutral
872 | Basic earnings per share from total operations of 11.4 pence (2021: 27.5 pence) per share is calculated by dividing the profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, of £26,791,000 (2021: £54,806,000) by the weighted average number of shares in issue during the period of 235,388,001 (2021: 199,094,964). | 165 | 2022 | Profit | EPS | Bad
873 | Basic earnings per share after adding back adjusting items of 31.3 pence (2021: 29.2 pence) per share is calculated by dividing the adjusted profit attributable to Ordinary Shareholders for the financial year, after adjusting for non-controlling interests, of £73,606,000 (2021: £58,161,000) by the weighted average number of shares in issue during the period of 235,388,001 (2021: 199,094,964). | 165 | 2022 | Profit | EPS | Good
874 | Diluted earnings per share from total operations of 11.3 pence (2021: 27.4 pence) per share is calculated by dividing the profit for the financial year, after adjusting for non-controlling interests, of £26,791,000 (2021: £54,806,000) by the weighted average number of shares in issue during the period of 235,388,001 (2021: 199,094,964) plus potentially dilutive shares of 1,213,042 (2021: 1,222,847), which totals 236,601,043 (2021: 200,317,811). | 166 | 2022 | Profit | EPS | Bad
875 | Diluted earnings per share after adding back adjusting items of 31.1 pence (2021: 29.0 pence) per share is calculated by dividing the adjusted profit for the financial year, after adjusting for non-controlling interests, of £73,606,000 (2021: £58,161,000) by the weighted average number of shares in issue during the period of 235,388,001 (2021: 199,094,964) plus potentially dilutive shares of 1,213,042 (2021: 1,222,847), which totals 236,601,043 (2021: 200,317,811). | 166 | 2022 | Profit | EPS | Bad
876 | The Company reported a profit for the financial year ended 31 December 2022 of £137,785,000 (2021: loss of £6,362,000) | 187 | 2022 | Profit | Financial performance | Good
877 | Dividends thereon are recognised in the profit and loss account as a financial expense. | 188 | 2022 | Profit | Dividend | Neutral
878 | Income tax on the profit or loss for the year comprises current and deferred taxation. Income tax is recognised in the Income Statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity | 189 | 2022 | Profit | Taxation | Neutral
879 | To ensure a strong alignment between the interests of management and our shareholders, a large proportion of management’s remuneration continues to be in shares which must be retained for up to five years | 9 | 2022 | remuneration | Alignment | Good
880 | Our goal is continuous improvement with the achievement of annual health and safety targets being linked to the remuneration of our Executive Directors and our senior management team | 26 | 2022 | remuneration | Health and safety | Good
881 | The Chair and the Remuneration Committee Chair meet annually with the governance teams of our key shareholders to ensure their views are reflected in how we make decisions, operate our business and evolve our strategy | 27 | 2022 | remuneration | Engagement | Neutral
882 | The Chair and Remuneration Committee Chair held meetings with shareholders in November 2022 | 30 | 2022 | remuneration | Engagement | Neutral
883 | In 2022, we introduced Executive remuneration linked to carbon reduction science-based targets. | 50 | 2022 | remuneration | sustainability | Good
884 | These metrics are linked to Executive remuneration. We also use metrics relating to physical risk by analysing changes and trends, as well as analysing weather data in order to monitor impact to production and site operation. | 51 | 2022 | remuneration | Risk management | Neutral
885 | The achievement of annual health and safety improvement targets is directly linked to the remuneration of the Executive Directors and senior management, as explained in the Remuneration Report | 58 | 2022 | remuneration | Health and safety | Good
886 | Senior Independent Non-Executive Director and Chair of the Remuneration Committee of Bunzl plc, NonExecutive Director and Chair of the Remuneration and CSR Committees of Manchester Airports Group and Non-Executive Director and Chair of Yorkshire Water. | 76 | 2022 | remuneration | Directorship | Neutral
887 | Director of the Mineral Products Association. NonExecutive Director and Chair of the Remuneration Committee of Eurocell plc [NAME] | 76 | 2022 | remuneration | Directorship | Neutral
888 | Senior Independent Non-Executive Director and Chair of the Remuneration and ESG Committees of Harworth Group PLC. [NAME] | 76 | 2022 | remuneration | Directorship | Neutral
889 | This report, together with the Reports of the Audit, Nomination and Remuneration Committees on pages 92 to 130, seeks to demonstrate our commitment to high standards of governance that are recognised and understood by all | 78 | 2022 | remuneration | Governance | Neutral
890 | Overseeing the Remuneration Policy review and engagement with stakeholders, including our EVG | 83 | 2022 | remuneration | Remuneration | Neutral
891 | Early engagement with shareholders on approach to implementation of current Remuneration Policy, which reflected transformational nature of the year | 83 | 2022 | remuneration | Engagement | Neutral
892 | Remuneration Report on pages 100 to 130 sets out our proposed Remuneration Policy to be tabled with shareholders at this year’s AGM. It shows how our current policy has been implemented for 2022, including details of Directors’ remuneration. The Remuneration Report also provides gender pay and balance information | 84 | 2022 | remuneration | Remuneration | Neutral
893 | The Chief Executive attends Remuneration and Nomination Committee meetings by invitation. | 87 | 2022 | remuneration | Committees | Neutral
894 | The Remuneration Committee Report describes how the current Remuneration Policy has been implemented during 2022 and the outcomes achieved. It also describes how the Remuneration Committee has carried out its responsibilities during the year. | 91 | 2022 | remuneration | Remuneration | Neutral
895 | The Remuneration Committee continues to effectively discharge the duties delegated to it by the Board under the leadership of the Committee Chair, ensuring outcomes reflect performance and taking a holistic view of remuneration across the Group, having consulted employees appropriately, the importance of which is recognised by the Board | 91 | 2022 | remuneration | Remuneration | Neutral
896 | Remuneration arrangements for Executive Directors provide an appropriate balance of fixed and variable remuneration with a focus on long-term growth | 100 | 2022 | remuneration | Remuneration | Neutral
897 | Continuing with a remuneration policy which aligns to the strategic goals | 100 | 2022 | remuneration | Alignment | Neutral
898 | Monitor alignment of Executive remuneration with pay policies and incentives for colleagues. | 100 | 2022 | remuneration | Alignment | Neutral
899 | Continue to monitor our engagement plan with employees, shareholders and other stakeholders on remuneration to ensure it remains effective. | 100 | 2022 | remuneration | Engagement | Neutral
900 | Undertook a comprehensive review of the Remuneration Policy including engagement with shareholders, in readiness for the Policy to be put to shareholders for approval at the Company’s 2023 AGM. | 100 | 2022 | remuneration | Remuneration | Neutral
901 | Agreed the remuneration package for [NAME], the new Executive Director who was appointed to the Board on 1 April 2022 | 100 | 2022 | remuneration | Remuneration | Neutral
902 | Undertook a detailed review of Executive Director and senior management remuneration in light of the significantly increased size and complexity of the Group following the acquisition of [NAME] and the change in responsibilities for the leadership team, | 100 | 2022 | remuneration | Remuneration | Neutral
903 | The CEO attends the Committee meetings by invitation but may not participate in discussions about his own remuneration | 100 | 2022 | remuneration | Governance | Neutral
904 | Remuneration Policy which will be put forward to the 2023 AGM for voting; and | 101 | 2022 | remuneration | Remuneration | Neutral
905 | Annual Report on Remuneration setting out additional detail on the remuneration for the Executive Directors, disclosures required by the remuneration reporting regulations, and considerations in respect of pay for colleagues. | 101 | 2022 | remuneration | Remuneration | Neutral
906 | For 2022, there was no change to the operation of the current Remuneration Policy, with two exceptions being the modification to the non-financial metrics for the incentive schemes which was described in last year’s report | 101 | 2022 | remuneration | Remuneration | Neutral
907 | Group and its shareholders by aligning remuneration to the Group’s strategic goals, through an appropriate blend of fixed and variable remuneration and short and long-term incentives. | 101 | 2022 | remuneration | Alignment | Neutral
908 | Therefore, the Committee is proposing that the same Remuneration Policy, with one minor change to confirm that the pension provision for Executive Directors will be in line with the majority of employees | 101 | 2022 | remuneration | Remuneration | Neutral
909 | We engaged with shareholders on the renewal of the Remuneration Policy, confirming that we intend to make a minor change to align the pension benefit for Executive Directors with the majority of employees. | 103 | 2022 | remuneration | Engagement | Neutral
910 | aving considered the outcomes of 2022 and the market context, the Committee feels the remuneration outcomes for 2022 are proportionate and appropriate | 103 | 2022 | remuneration | Remuneration | Neutral
911 | Our Remuneration Report has been prepared in accordance with the Companies Act 2006 and Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013. | 103 | 2022 | remuneration | Compliance | Neutral
912 | The ability for the Directors to gain and lose, dependent on the share price performance of the Company, at a level which is material to their total remuneration, is a key facet of the Company’s Remuneration Policy. | 105 | 2022 | remuneration | Alignment | Neutral
913 | Pension allowances are excluded for the purposes of calculating any other element of remuneration based on a percentage of salary. | 106 | 2022 | remuneration | Exclusion | Neutral
914 | Annual performance conditions and targets are set at the beginning of the Plan year by reference to financial, strategic and operational objectives by the Remuneration Committee | 107 | 2022 | remuneration | performance | Neutral
915 | Annual performance conditions and targets are set by reference to financial, strategic and operational objectives by the Remuneration Committee. | 108 | 2022 | remuneration | performance | Neutral
916 | Our current Remuneration Policy (approved by shareholders at the 2020 AGM with 93 per cent of votes cast in favour) is due for reconsideration at our 2023 AGM. | 108 | 2022 | remuneration | Remuneration | Neutral
917 | During the year the Committee have undertaken a review of the approach to executive remuneration to ensure that it remains supportive of the Group’s long-term strategic ambitions and is competitively positioned to attract, motivate and retain the talent and experience the Group needs in our sector | 108 | 2022 | remuneration | Remuneration | Neutral
918 | Throughout the Policy review, the Committee received advice from its independent remuneration consultant, taking into account the impact of the UK Corporate Governance Code, regulations and shareholder interests. | 108 | 2022 | remuneration | Compliance | Neutral
919 | The current approach to remuneration has been operated by the Company for a number of years and is well understood by participants and other stakeholders | 109 | 2022 | remuneration | Consistency | Neutral
920 | The Remuneration Policy is designed to ensure that incentives do not encourage short-term risk taking at the expense of a long-term sustainable business. To this end, the key features of the MIP include | 109 | 2022 | remuneration | sustainability | Good
921 | whether a benchmarking exercise is appropriate (using salaries within the ranges paid by the companies in the comparator groups for remuneration benchmarking). | 110 | 2022 | remuneration | Benchmarking | Neutral
922 | Annual performance conditions and targets are set at the beginning of the Plan year by reference to financial, strategic and operational objectives by the Remuneration Committee | 112 | 2022 | remuneration | performance | Neutral
923 | Full details of the relevant targets and their weighting, and how they have been measured, will be reported in the Remuneration Report for the relevant financial year | 112 | 2022 | remuneration | performance | Neutral
924 | An award under the Plan is subject to satisfying relevant performance conditions and targets determined annually by the Remuneration Committee by reference to financial and non-financial objectives that are closely linked to the strategy of the business and may also contain individual performance objectives, measured over a period of one financial year. A minimum of 50% of the bonus is based on financial performance measures. | 112 | 2022 | remuneration | Target | Neutral
925 | Annual performance conditions and targets are set by reference to financial, strategic and operational objectives by the Remuneration Committee. | 113 | 2022 | remuneration | performance | Neutral
926 | Details of the performance conditions, targets and their level of satisfaction for the year being reported on will be set out in the Remuneration Report for the relevant financial year | 113 | 2022 | remuneration | performance | Neutral
927 | Figures have been calculated based on target performance (fixed elements plus 50 per cent of the maximum MIP). The charts have been based on the same assumptions as set out for the illustrations of the application of the total remuneration opportunity under the new Policy | 115 | 2022 | remuneration | performance | Neutral
928 | The Committee has arrangements in place to receive and review the views of the Company’s employees on Executive remuneration and the application of the Remuneration Policy by means of regular meetings with employee groups attended by the designated Non-Executive Director for employee engagement, periodic surveys and detailed reports and presentations from the Chief People and ESG Officer to the Committee. | 115 | 2022 | remuneration | Engagement | Good
929 | The remuneration of any new Executive Director will be determined in accordance with the principles set out in the Remuneration Policy. | 115 | 2022 | remuneration | Consistency | Neutral
930 | In setting the remuneration for new hires, the Committee will have regard to guidelines and shareholder sentiment regarding one-off or enhanced short-term or long-term incentive payments as well as giving consideration to the appropriateness of any performance measures associated with an award. | 115 | 2022 | remuneration | Consideration | Neutral
931 | Executive Directors are permitted to hold one external plc Board appointment and may retain any remuneration received in that capacity. Non-Executive Directors, including the Chair, are appointed under letters of appointment, usually for a term of three years | 116 | 2022 | remuneration | Directorship | Neutral
932 | The Remuneration Committee’s normal policy is that it will pro-rate for time. It is the Remuneration Committee’s intention only to use discretion to not pro-rate in circumstances where there is an appropriate business case which will be explained in full to shareholders; | 118 | 2022 | remuneration | Policy | Neutral
933 | The Committee regularly consults with shareholders on Executive remuneration. The Remuneration Committee gave shareholders the opportunity to comment on the 2023 Policy before its finalisation. The Committee is committed to consulting in advance with shareholders before making any material changes to any element of Executive remuneration. | 119 | 2022 | remuneration | Engagement | Good
934 | The Board is responsible for setting the remuneration of the Non-Executive Directors | 119 | 2022 | remuneration | Remuneration | Neutral
935 | The Remuneration Committee is responsible for setting the Chair’s fees. Non-Executive Directors are paid an annual fee. | 119 | 2022 | remuneration | Remuneration | Neutral
936 | Non-Executive Directors and the Chair do not participate in any variable remuneration or benefits arrangements. | 119 | 2022 | remuneration | Remuneration | Good
937 | This report covers the reporting period from 1 January 2022 to 31 December 2022 and explains how the 2020 Remuneration Policy has been implemented. Comparative figures for the 2021 financial year have also been provided | 120 | 2022 | remuneration | Reporting | Neutral
938 | [NAME] joined the Board as Chief Operating Officer on 1 April 2022. His fixed remuneration elements reflect his time on the Board since the date of appointment | 120 | 2022 | remuneration | Appointment | Neutral
939 | the Committee’s approach to the review of wider workforce pay policies and how it has taken these into consideration in setting remuneration; | 124 | 2022 | remuneration | Alignment | Neutral
940 | As Chair of the Remuneration Committee and designated Non-Executive Director for employee engagement, [NAME] attends the Employee Voice Group (“EVG”). The EVG meets six times a year and, amongst other things, provides valuable input into a range of topics including reward and remuneration policy | 124 | 2022 | remuneration | Engagement | Good
941 | whether the element of remuneration is consistent with the Company’s remuneration principles; | 124 | 2022 | remuneration | Alignment | Good
942 | if there are differences in remuneration, whether they are objectively justifiable | 124 | 2022 | remuneration | Alignment | Good
943 | The Committee uses its annual review of the wider workforce remuneration and incentives to inform the approach applied to the remuneration of the Executive Directors and senior management. In particular, the Committee is focused on whether, within the framework set out above, the approach to the remuneration of the Executive Directors and senior management is consistent with that applied to the wider workforce. | 124 | 2022 | remuneration | Alignment | Good
944 | In summary, the Committee is satisfied that the approach to remuneration across the wider workforce is consistent with the Company’s Remuneration Policy and the wider principles of fairness and sustainability that are fundamental to the Group’s culture. Further, in the Committee’s opinion the approach to Executive remuneration aligns with the approach taken in the wider Company pay policy | 125 | 2022 | remuneration | Alignment | Good
945 | The Remuneration Committee has always been committed to ensuring that CEO reward is commensurate with performance. The chart shows a clear alignment between shareholder returns and CEO single figure pay | 126 | 2022 | remuneration | Remuneration | Good
946 | It is this element of the package which provides the volatility in CEO remuneration and the variations in the ratio. The Committee is satisfied that the underlying picture does not show a divergence trend between the CEO remuneration and employees generally, i.e. excluding share price volatility, the relationship with employee pay is consistent. | 126 | 2022 | remuneration | Remuneration | Neutral
947 | Where the base structure of remuneration is similar, for example on comparison between the Executive Committee pay and that of the CEO, the ratio is much more stable over time. | 126 | 2022 | remuneration | Stability | Neutral
948 | The Committee is satisfied that the remuneration advice from PwC is objective and independent based on the separation of the team advising the Committee from any other work undertaken by PwC for the Group and the fact that PwC is a signatory to the Remuneration Consultants Group’s Code of Conduct | 130 | 2022 | remuneration | Remuneration | Good
949 | PwC resigned as remuneration advisers before the work commenced and were reappointed once the work was complete. PwC’s work relating to Executive remuneration during 2022 included guidance and support on the review of the Remuneration Policy; assistance with the Remuneration Committee Report; total remuneration benchmarking of Executive Directors; and general advice on remuneration trends, regulations and best practice. The amount paid to PwC in respect of remuneration advice received during 2022 was £104,610 (2021: £38,000) | 130 | 2022 | remuneration | Remuneration | Neutral
950 | Details of Directors’ remuneration, their interests in the share capital of the Company and the share-based payment awards are contained in the Remuneration Committee Report on pages 100 to 130. | 132 | 2022 | remuneration | Remuneration | Neutral
951 | Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that comply with that law and those regulations | 133 | 2022 | remuneration | Compliance | Neutral
952 | the nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration policies, key drivers for Directors’ remuneration, bonus levels and performance targets; | 140 | 2022 | remuneration | Consideration | Neutral
953 | In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006 | 141 | 2022 | remuneration | Compliance | Neutral
954 | As set out in the Annual Remuneration Report on page 120, the Executive Directors receive a salary supplement in lieu of pension equal to their contractual entitlements. | 164 | 2022 | remuneration | Remuneration | Neutral
955 | Further details in relation to the Directors are set out in the Remuneration Committee Report on pages 100 to 130. Included in the total expense of £2,038,000 (2021: £2,545,000) is an amount of £1,297,000 (2021: £1,490,000) settled as interim cash payments under the terms of the Scheme and which has been included within wages and salaries | 179 | 2022 | remuneration | Remuneration | Neutral
956 | In addition to their salaries and pension allowances, the Group also provides non-cash benefits to Directors. Further details in relation to Directors are disclosed in the Remuneration Committee | 184 | 2022 | remuneration | Remuneration | Neutral
957 | Details of Directors’ remuneration, share options, long-term incentive plans and Directors’ pension entitlements are disclosed on pages 100 to 130 of the Remuneration Committee Report. | 189 | 2022 | remuneration | Remuneration | Neutral