COMPANIES ACT | SECTION 172

Section 172(1) Statement

The Board has a legal responsibility under section 172 of the Companies Act 2006 to act in a way they consider, in good faith, is likely to promote the success of the Company for the benefit of its shareholders.

The Board understands the importance of engaging with stakeholders; by engaging with our stakeholders we gain a better understanding of what areas they are interested in or are concerned about. Covid-19, the associated lockdowns and eventual easing, required the Board to act swiftly and decisively, highlighting the need for regular engagement with our stakeholders throughout the decision making process.

This section sets out how the Board has acted in accordance with the requirements of the Companies (Miscellaneous Reporting) Regulations 2018, whilst having regard to the following matters set out in S172(1) of the Act:

A. The likely consequences of any decision in the long term

The Board meets informally every week and formally once a quarter. The Board has a deep understanding of the business and the industry in which we operate. Decisions at board level always have regard for the long-term implications of such decisions, for example the business decisions taken around the unknown impacts of the unfolding global pandemic which dominated most of 2020 were focussed around the long-term success of the business (in addition, of course, to the safety of our staff, customers and suppliers).

B. The interests of the Company’s employees

Our staff are key to the success of our business. We aim to recruit the best people, train them well and look after them so that they provide the best possible service for our customers and remain long-serving, loyal employees. Health and Safety is taken very seriously and sits at the top of the formal Board meeting agenda as we strive to provide the safest work environment possible. We invest heavily in training to provide the best levels of customer support. We aim to pay our staff fairly and pay reviews are done annually.

C. The need to foster the Company’s business relationships with suppliers, customers and others

We place our customers at the heart of everything we do and focus on delighting our customers at all times. Our customers are key to the success of our business and we are focussed on responding to their needs and building long-term relationships. Likewise, our suppliers and communities in which we operate are key to the success of the business. The Company seeks to have a positive impact in the communities in which it operates and aims to conduct all of its business relationships with integrity and courtesy, and to meticulously honour every business agreement. The directors have personal involvement with key customers and suppliers. The company makes regular charitable donations to selected (different) charities each year.

D. The impact of the Company’s operations on the community and the environment

The Company is actively engaged in reducing the environmental impact of its operations by, for
example, installing LED lights, reducing waste, and running more electric and hybrid vehicles in the Company’s fleet.

E. The desirability of the Company maintaining a reputation for high standards of business conduct

The Board aims to maintain and enhance its position as one of JCB’s most successful dealers globally and the preferred provider of equipment to companies operating in construction related sectors in the South of England. Working safely and professionally, the Company endeavours to be the best at what it does. Providing its customers with quality machines backed up by the highest level of customer service in the industry. Our vision is for the Company to be a place where people enjoy working, are continuously tested and are developed to fulfil their potential whilst working as a team to delight customers.

F. The need to act fairly as between members of the Company

The Company is an owner-managed business, with the shareholder taking an active, hands-on approach to overseeing many of the Company’s day-to-day and long-term operations.