Driving sustainable growth

Our strategy is built around reaching ever more potential customers for our brands whilst focusing on further efficiency in everything we do. We expect this to deliver sustainable sales growth and improve operating margins, thereby driving increased profitability.

Progress

  • Delivered strong online sales growth in 2021 building on 2020 gains.
  • Total online channel sales now account for 50% of UK/US markets (2020: 47%, 2019: 30%).
  • Significant increase achieved in online customer list – a key KPI.

Future outlook

  • Further investment in our own websites and digital/online presence across all platforms.
  • Expect to launch new improved UK websites in 2022.
  • Focus on deepening relationship with the end consumer and building lifetime value of customer.

The Board’s governance role

  • The Board approves the longterm objectives and strategy, monitors performance and where necessary, ensures corrective action is taken.

Link to KPIs

Progress

  • Clear brand guidelines and defined plans for future growth in place.
  • Has enabled Spode and Pimpernel sales to grow significantly vs. 2019 pre Covid-19.
  • Improved digital assets have helped further deepen customer emotional affinity for brands.

Future outlook

  • Further focused execution of our new brand plans to drive further sales growth.
  • Will focus on developing both historic ranges and new ranges which are brand focused and speak to both our traditional customer base and new consumers.
  • Will develop new customer VIP clubs for major brands.

The Board’s governance role

  • The Board oversees the Group’s operations to ensure competent and prudent management by the Executive Directors and the senior management team.

Link to KPIs

Progress

  • Group currently exports to around 70 countries.
  • Rest of world sales increased by 27% in 2021.
  • New distributor relationships signed in 2021 including China.

Future outlook

  • Expect growth over next three years with focus on building three new sizeable markets.
  • Leverage all our brands more effectively across export markets.
  • Leverage our brands further with international growth in home fragrance, personal care and Nambé.

The Board’s governance role

  • The Board reviews all financial performance of the Group in major markets.

Link to KPIs

Progress

  • Successful launch of key new ranges in 2021 despite ongoing Covid disruption to supply chains.
  • New product launches contributed over 10% to total Group sales.
  • Robust two year roadmap and process for future product launches in place.

Future outlook

  • Pipeline of new product for launch in 2022 on track.
  • Key extensions to highly successful Spode Christmas Tree range for 2022.
  • Botanic Garden 50th anniversary product launches for 2022.

The Board’s governance role

  • The Board regularly reviews commercial sales information to ensure the Group has a sustainable growth model.

Link to KPIs

Progress

  • UK factories remained safely open throughout 2021 despite Covid disruption.
  • Automation schemes in Stoke-on-Trent factory implemented Q4 2021/Q1 2022 to add capacity and efficiency gains.
  • Extension to Lake District home fragrance factory completed H2 2021.
  • Good stock availability position for key Christmas trading period despite huge Covid-19 supply chain disruption.

Future outlook

  • Factory efficiency projects will add output and reduce cost per unit in 2022 thereby improving profit margins.
  • Procurement savings already realised but more opportunities available.
  • Improve warehouse capabilities and potential for future growth.

The Board’s governance role

  • The Board approves the annual expenditure budgets and any material changes to them. Capital and operational expenditure over £250,000 must also be approved by the Board.

Link to KPIs