Extending our track record of industry leadership and strong performance
We intend to achieve our goals through a combination of three strategic objectives: organic
growth, selective acquisitions and Operational Excellence, and this year have focused our
activity around embedding our approach to Environmental, Social and Governance issues
(ESG) into our culture.
The following diagram
summarises our Group strategy:
Continue to grow through a focused sales strategy for each of our market sectors. Focus on opportunities arising from increasingly favourable regulatory environments. Continue to build public awareness of indoor air quality issues and the benefits to health of higher value ventilation solutions to grow our markets and increase margins. Continue to develop new products and deliver benefits from recently acquired businesses and drive cross-selling initiatives.
- Drive demand growth in all our markets benefiting from regulation and educated end users.
- Bespoke sales and marketing strategy to address each market sector.
- Provide innovative products to address evolving market demand and generate upselling opportunities.
- Promote sales opportunities for Group products through newly acquired companies.
Achievements during the year
- Organic operating margin expansion in the first half of the year, although latterly impacted in the second half of the year due to COVID-19.
- Significant market traction with our Xenion range of decentralised heat recovery products in Germany.
- Continued roll-out of the Liberty fan platform across the Group.
- Launched our new wireless zonal control system for decentralised heat recovery in Germany.
- Increased efficiency and use of recycled materials at our moulding, extrusion and assembly facility in Reading, UK.
- Range development, maximising the opportunities arising from our expanding geographic and market sector range.
- Roll out the range of decentralised heat recovery systems across the Group’s different geographic channels.
- Extend our range of controls to a wider range of product platforms.
- Further broaden the EC3 product range marketed by Torin-Sifan.
- Launch our new mechanical extract central ventilation system (MEV) platform through Group sales channels.
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 for key strategic opportunities, outside of Europe.
- Make acquisitions to establish leading positions in newmarkets and expand our presence in existing markets.
- Deliver revenue and cost synergies from acquisitions.
- Increase cross-selling and export growth.
- Share experiences across our sales and marketing teams, maximising our effectiveness.
Achievements during the year
- Inorganic revenue growth of 3.5% (3.7% at constant currency).
- Integration of Ventair extending our reach to the attractive residential market in Australia.
- Extension of Simx product ranges including many new Group products.
- Launch of the Manrose and Vent-Axia brands in Australia.
- Continued to substitute externally sourced products used by our acquired companies with internally developed and manufactured solutions expanding our gross margins.
- Expanded the Manrose and Vent-Axia brands internationally through newly acquired businesses.
- Acquired the rights of our former agent, Nordic Line, for our distribution route to market in Denmark.
- Continue the integration of our Australasian businesses into our Group, building on new regulatory opportunities.
- Continue to search and pursue new acquisition opportunities.
- Maximise synergies available through our growing scale.
- Further grow intercompany sales to widen product categories served internationally.
- Focus new product development to expand our offer in existing channels.
Our dedication to Operational Excellence continues. We have been focused on improving 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.
- A year of increasing efficiency gains at our new facility in Reading, UK.
- Share operational best practice around the Group with specific focus on procurement and innovation.
- Further develop our ERP systems which underpinned various streamlining initiatives in the UK.
- Leverage our innovation.
Achievements during the year
- Finalised plans to move to a new, more efficient layout facility in Sweden.
- Removed over 600,000 single use plastic bags from production.
- Rolled out our new Liberty range of extract fans around a common platform for efficient manufacture and inventory reduction – now launched in all geographies.
- Continued to enhance the planning and materials management aspect of our Torin-Sifan ERP system resulting in significant in-year stock reduction and improved material supply.
- Achieved significant cost-out through value engineering and improved sourcing arrangements assisting us to expand product gross margins in line with our operating margin expansion objectives.
- Increase manufacturing efficiency, reduce waste, increase use of recycled materials and build a more sustainable supply chain.
- Targeted reductions in material costs with main focus on electronics and plastic raw materials for both injection moulding and extrusion.
- Finalise the roll-out of a common ERP platform across our UK Ventilation Group underpinning the streamlining initiative.
- Move to a new, improved layout facility in Sweden, due for completion by December 2020.
- Optimise supply chain and sourcing benefits.