Section 172 Statement
Introduction
The s172 report provides narrative about how the board has sought to promote the success of the Company for the benefit of shareholders and details key decisions during the year.
Duty to promote the success of the company
A Director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of the members as a whole, and in doing so have regard (among other matters) to:
● The likely consequences of any decision in the long-term,
● The interests of the company’s employees,
● The need to foster the company’s business relationships with suppliers, customers, and others,
● The impact of the company’s operations on the community and the environment,
● The desirability of the company maintaining a reputation for high standard of business conduct, and
● The need to act fairly between members of the company.
How these requirements are met
The primary objective of Graphic plc is to provide an interconnection manufacturing service for high quality, technically demanding product that contributes positively to the customer's business and acknowledges the needs of all stakeholders by employing best practice and business excellence principles. This objective is to be achieved with commercial awareness that ensures sustainability while meeting all necessary regulatory and legal requirements relevant to the business activities.
The company is a leading provider of employment within its local area and actively supports local charity events and family activities. Most of the employees have been with Graphic for a number of years and between them have an endless supply of product and technical knowledge. Further details on employee consultation are provided in the Directors report. The company is a member of the Investors in People organisation and is reviewed regularly.
Graphic is constantly striving to improve performance and increase its knowledge within the industry. Therefore the company is a proud member of various industrial bodies such as Institute of Circuit Technology, IPC and West of England Aerospace Federation. Graphic has a very strong partnership with the University of Exeter and works with their academic team in a number of research areas to enhance innovation and technology transfer. Graphic also works with the local colleges and schools in order to encourage new employees and interest within the industry.
The company has carefully selected global distributors and agents based upon their local and technical knowledge in order to provide the best possible service. Graphic also has a manufacturing facility China. This facility allows the company to be competitive in price sensitive markets without compromising on quality or service.
The company has introduced several initiatives in order to ensure high reliability of complex high technology boards because of our involvement in high reliability requirement markets. As part of its commitment to quality the company maintains a number of approvals and certificates including ISO 14001, NADCAP and Cyber Essentials.
The company has an environmental policy which seeks to manage buildings, equipment, processes and substances in an environmentally sensitive manner to protect the environment, prevent pollution and reduce carbon emissions.
Engaging with stakeholders
The Board engages with shareholders and debt providers on a regular and ad-hoc basis around the time of year end and interim results as well as at any time during the year as questions may arise.
The Board engages with employees via a system of internal KPI feedback, along with a quarterly general meeting focusing on the business results. All employees are part of a company wide performance related bonus incentive scheme. Employees are encouraged to make suggestions on any aspect of the company via a suggestions box.
The Board has a sales team which comprises of external and internal customer account managers. This team is tasked with promoting good, long-term customer relations. The whole team and board members meet on a quarterly basis to ensure customers need are being met and to discuss future strategies.
Some of the key decisions made during the year for the benefit of the long term success of the company are described below.
Principal decision
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Impact on long term success of business
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Stakeholder considerations
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To maintain our competitive advantage it is essential that the Company invests in the latest printed circuit board manufacturing technology. In 2022 we invested almost £300k in new software, plant and machinery.
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This will greatly support our technical roadmap and continued long term growth in high reliable leading edge printed circuit board technology.
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We have included company management team, group finance, customers and suppliers.
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To maintain our competitive advantage it is essential that the Company continues to train and develop our staff.
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We are carrying out continuous internal and external training programs. Furthermore we are developing our apprenticeship scheme, which we consider essential for our future growth.
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We are in continuous consultation with local colleges, universities and training providers to help us develop and choose the most suitable courses for our needs.
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During the year the group owners decided to sell to a private equity company.
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For the sale to be a long term success it was important that new owners would be a good fit into the group and would continue the group ethos and to encourage growth through sustained capital investment.
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We have included shareholders, directors and key personnel throughout the group in the decision making process.
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As part of our continuous improvement program, we decided to focus on Lean Manufacturing principles.
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Looking at improving efficiencies throughout the facility, reducing waste and improving workplace organisation. We have seen margins and OTD improvements as a result of these actions.
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We have included all company departments.
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