S172 Report

S172 Report

In accordance with their statutory duties, the Directors of Alderley plc have taken decisions with due regard for the:

•           likely consequences of any decision in the long term

•           interests of the company’s employees

•           need to foster the company’s business relationships with suppliers, customers and others

•           impact of the company’s operations on the community and the environment

•           desirability of the company maintaining a reputation for high standards of business conduct

•           need to act fairly between members of the company

In each of these areas there are various stakeholders who have been considered, including:

•           Shareholders

•           Employees and other workers

•           Customers

•           Suppliers

•           Lenders

•           The wider community

The Group engages with its stakeholders in the belief that long-term relationships are beneficial. The Group respects the rights and obligations of both parties, which builds trust and willingness to support each other when needed.

Regular and honest feedback is essential to this effort and the Group has regular dialogues with stakeholders where appropriate including:

•           Formal shareholder meetings

•           An open door policy to all shareholders

•           Employee engagement surveys

•           Employee performance review discussions

•           Ad hoc discussions with employees at all levels

•           Meetings with key customers, suppliers and lender representatives

•           Surveys on customer perception and experience

Currently, there is no formal liaison with the community, or environmental representatives. However, where the Group is a significant employer within a community, regular informal feedback is obtained from employees who live within the surrounding area, such that targeted conversations can be held where necessary. A similar approach applies to ensuring that the Group’s environmental impact is considered, such that any local issues are identified and appropriately addressed.

The Group is family-owned, so it benefits greatly from the continuous support of a fully engaged and stable shareholder base.

The key strategic decisions taken during the year are outlined below along with a description about how due regard was given to the factors outlined at the start of the S172 Report.

Alderley Engineering Private Ltd

During the year the decision was made to open an entity in India to develop a local engineering capability and build closer links to customers in the territory.

The expected impact of this action was considered to be generally beneficial in all of the areas outlined at the start of the S172 Report. While a small number of existing employees may be detrimentally impacted in the medium term due to the consolidation of some existing engineering activities into the new entity, the decision was deemed beneficial to the vast majority of employees who would receive better support in engineering activities in addition to greater job security arising from greater profitability.

Strategic Market Penetration

Where necessary the Directors may decide to invest in developing or defending market share in strategic markets.

While such decisions may have a small detrimental effect on the profitability of the business in the short-term, the longer-term benefits are considered to be generally beneficial in all of the areas outlined at the start of the S172 Report.