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.