Collaboration to strengthen and grow Client relationships
Innovation to extend and differentiate our capabilities
Streamlining to optimise and improve processes
We aim to reward shareholders both through capital growth and dividends. We will grow first and foremost by organic growth but we will add services, expertise and talent where we find it complementary to our objectives and financially affordable.
Organic growth is achieved from:
1. New business activity in each Agency
2. Client-focussed cross-selling and collaboration between Agencies
We have an investment strategy targeting growth and margin-improvement opportunities. In assessing how best to deploy the Group’s capital we:
• Support existing management who have clearly demonstrated an ability to grow and to achieve sustainable high profits and margins
• Target new high-growth market sectors and service or technology opportunities which meet strict return on investment criteria
• Target profitable businesses that are core to our current activities and whose growth can be accelerated beyond their current trajectory through membership of the Group
When considering what form our investment should take, we consider the full range of options:
• New talent hired in
• New technologies developed
• New offices/new territories
• Start-up ventures and joint ventures
• Entrepreneurial opportunities
Although primarily operating in the UK, we will continue to develop our international footprint in response to Client demand and where we see strong opportunities to leverage our well-established UK strengths elsewhere in the world.
Acquisitions must be earnings-enhancing. We aim, wherever possible, to spread payment over three years. All consideration beyond the initial amount is based on post-acquisition profits.
Start-up businesses may require more time to become established but will have a smaller investment cost/lower risk profile. We will maintain a balance of equity and debt financing to give shareholders the advantages of financial leverage but without placing the business at financial risk.