Our competitive advantage
Our long-term ambition is to be the leading European multinational distributor of construction related products and solutions operating a diversified portfolio of local market-leading businesses.
The investment case below explains the sources of competitive advantage that will enable us to achieve this objective and deliver value for our shareholders:
Long-term growth potential
We operate in markets with structural long-term growth potential:
- Shortage of housing and growing population
- Need to improve the existing housing stock and built environment
- Need to increase energy efficiency and reduce carbon emissions
- Fragmented construction distribution markets offering consolidation opportunities
Growth, acquisition and integration capability
- Track record of organic development and continuous improvement
- Significant experience in acquiring and successfully integrating businesses
- Proven track record in enhancing and growing acquired businesses
- Disciplined and repeatable acquisition model supported by dedicated corporate development capabilities and a proven integration playbook
Resilient business model
- Leading market positions across multiple European markets with a diversified portfolio providing resilience throughout the cycle
- Trusted local brands in each geographic market, tailored to the needs of local customers
- Federated operating model gives local accountability, supported by a performance-led management regime and shared Group expertise
Operational strength and expertise
- Strong management teams in each geography to execute the local strategy
- Highly engaged and experienced colleagues in branches, understanding the needs of the local customer
- Subject matter experts in key functional areas at the centre to support local teams and a programme to share knowledge and leverage best practice
Delivering value for shareholders throughout the cycle
- Consistent delivery of ROCE > WACC
- Industry leading operating margins
- Track record of strong free cash flow: approximately £1.8 billion generated over the last ten years and over £700 million during the last four years
- Investment grade credit rating giving resilience in case of unexpected events or market downturns
- A disciplined approach to capital allocation with opportunities to:
- Invest in existing business and fund organic growth
- Grow the dividend whilst maintaining dividend cover at 2-3 times earnings
- Fund inorganic growth with a focus on creating long- term shareholder value
- Return surplus capital to shareholders
Based on full year results for the period ended 31 December 2025
