Our investment case
Delivering compounding earnings expansion from sustainability-driven growth markets
Operating in built environment sectors with inherent sustainability-linked structural drivers
- Operating in a sector with high levels of sustainability-driven growth
- Helping customers to mitigate climate change and adapt to its effects
- Structural growth arising from changing regulation (e.g. UK 2025 Future Homes Standard) driving demand
2–4%
target through-cycle outperformance of the UK construction market
Differentiated, innovative, low-carbon building products and solutions
- Meeting customers’ evolving needs and helping them to deliver their sustainability targets
- Moving up the value chain by building end-to-end solutions with better cost of ownership
- Aiming to be lowest carbon choice for customers; >60% of polymers from recyclate by 2025
66%
reduction in scopes 1&2 emissions; Net-Zero by 2050
Leading positions across diverse markets, with strong brand recognition
- A trusted partner for customers, providing a range of products and integrated solutions
- Number one or two in key market segments, with scope to take further share
c.20%
share of £3bn UK served addressable market
Margin expansion potential, including through GBS, lean initiatives and operating leverage
- Clear pathway to improve operating margin, through:
- Business simplification
- Genuit Business System (GBS) driving operational efficiency
- Operating leverage as volumes normalise
- Driving improvement in return on capital
>20%
operating margin target
Opportunity to expand solution offering through strategic acquisitions
- Complementing organic growth with value-creative acquisitions, including internationally
- Successful M&A track-record, reinforced by adoption and implementation of GBS approach
- Highly resilient Group thanks to breadth of portfolio
>15% ROCE
Group target
Highly cash-generative business model, with effective capital allocation
- Successful track record: c.£300m underlying cash generated from operations over last five years
- The Group aims to pay a progressive dividend, based on dividend cover of 2.0x or greater over the business cycle
Over 90%
cash conversion target
