Shareholders & Lenders
Our strategy is focused on creating shareholder value through
organic growth, geographic expansion into higher-growth markets and
strategic acquisitions. We apply disciplined criteria to all
potential acquisitions and capital investments to ensure that they
are expected to create value. As a Group, we also ensure that we
have in place robust financial, operational and risk management
systems.
We place considerable emphasis on regular communication with our
shareholders and lenders in order to provide a clear understanding
of our business strategy, performance, policies, and prospects.
We are also committed to engaging with regulatory bodies in
determining the scope and shape of future reporting
requirements.
Funding and Distribution
Tomkins is financed through a mixture of equity and debt. At the
end of 2008, the Group's capital was $2,087.2 million (2007:
$2,729.3 million). Our cost of capital is determined by our ability
to compete for capital in a competitive marketplace and this
directly impacts our ability to generate value for
shareholders.
We manage the Group's capital structure to maximise shareholder
value whilst retaining flexibility to take advantage of
opportunities which arise to grow the business. Our policy is to
fund new investments first from existing cash resources and then
from borrowings. It is our intention to maintain surplus undrawn
committed borrowing facilities sufficient to enable us to manage
the Group's liquidity through the operating and investment
cycles.
We maintain a regular dialogue with the credit rating agencies
and the potential impact on our credit rating is taken into
consideration when making capital allocation decisions. In terms of
distributions to shareholders, the Board's policy is to pay a
dividend appropriate to the prevailing market conditions and
outlook.
Stakeholder dialogue - investment community
The promotion of good communications with the investment
community is paramount. At Group level, we discuss our performance
with our shareholders and the investment community, third-party
survey and ratings agencies and other interested parties.
Communications with the investment community are directed through
the Corporate Communications department, based at our London head
office. In the spirit of transparent disclosure, as investor
relations information is released to the market, it is also made
available to download from our website.
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