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. 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.
Funding for both sustaining investment and investment for
organic growth is met initially from internally generated cash
flow. The net cash flow available for equity holders after organic
investment, together with debt finance available within the debt
capacity of the Group, will determine the funding available for
acquisitions and distributions. The debt capacity of the Group is
determined by our objective to maintain a stable capital structure
and the Group's investment grade debt rating.
In terms of distributions to shareholders, we aim to grow the
dividend progressively in line with the overall long-term cash
generation of the Group.
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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