Our competitive advantage
Our long-term ambition is to be the leading European multinational distributor of construction related products and solutions.
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
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
Resilient business model
- Leading market positions in several European markets providing greater resilience than a single country focus
- 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 generation: over £700 million generated over 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
75.4
p
Group adjusted EPS
37.75
p
DPS
£
720.5
m
Returns to shareholders in dividends and share buybacks (2022-2025)
£
274.0
m
Net cash before IFRS 16 leases
