A clear strategy for compounding growth
We aim to achieve our goals through a combination of three strategic objectives: organic growth, selective acquisitions and operational excellence, and this year have continued to embed our focus on environmental, social and governance issues (ESG) into our culture.
I am delighted with the progress we made in 2023. Our strong organic growth, two acquisitions completed in the year and our continuing strong operating profit margin were absolutely on point with our strategy.
Ronnie George
Chief Executive Officer
Organic Growth
What this means
Growth driven through a focused sales strategy for each of our market sectors. Focus on opportunities arising from increasingly favourable regulatory environments and growing public awareness of indoor air quality issues. Promote the benefits to health of higher value ventilation solutions to grow our markets and increase margins. Invest in innovative new products and deliver benefits from recently acquired businesses and drive cross-selling initiatives.
How we do it
- Cross selling group products through our international channels.
- Using our brands to open up new channels to market within the Geographies in which we operate.
- Innovation and new product development to keep growing the depth and width of our range.
Progress
- Organic revenue growth at 4.6% on a constant currency basis.
- Launching a range of decentralised Heat Recovery Solutions into the UK along with the role out of our new Econiq range across Europe.
Aligning to our sustainability strategy
- Good progress on sales of low-carbon products which now represent 70.1% of our revenue.
Value-adding acquisitions
What this means
We will continue to acquire and integrate complementary businesses in the residential market and, where appropriate, in the commercial ventilation market. Our focus will be principally on opportunities in Europe where there are clear synergistic benefits available and on key strategic opportunities outside of Europe.
How we do it
- Acquisitions which open new channels or product categories helping to diversify and reduce risk.
- Allocating capital for businesses that provide opportunities for product or component synergies.
- Structured 200 day plan integration process maximising value creation opportunities.
Progress
- Inorganic growth at 1.5% on a constant currency basis.
- We have completed two acquisitions in the year: VMI in April and I-Vent in June.
Aligning to our sustainability strategy
- Both VMI and I-Vent supply low carbon ventilation solutions to their respective customers.
Operational excellence
What this means
Our dedication to operational excellence continues. We have been focused on improving the efficiency of
all our operations and processes, reducing waste and optimising packaging and logistics. We have been building sustainability and ongoing improvement into the culture of our operations teams, helping to drive our ESG strategy.
How we do it
- Stay focused on service and delivering our proposition for customers.
- Continually drive our facilities and teams to
optimise operations.
Progress
- Adjusted operating margin of 21.3% (+20bps).
- Well managed supply chains and excellent customer service levels.
- Continued focus on sustainability and waste elimination.
Aligning to our sustainability strategy
- 76.2% of the plastic processed through our own facilities is supplied from recycled sources.
