Bibby Distribution Limited: Section 172 Statement

This section covers how the directors of the company have acted in the way they have considered, in good faith, most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regarded (amongst other matters):

(a) The likely consequences of any decision in the long term

The board has a formal business case sign off process / policy. Any investment decision must be signed off by the BDL executive team or board of directors and the long term future of the business is taken into account within this process. If any of the board of directors rejects the proposal, the business case will not be accepted or progressed.

There is also a monthly performance review process between the board of directors, with any significant decisions discussed, and these are formalised at the quarterly formal board meetings with all directors present and minutes taken.

(b) The interests of the company’s employees

The company’s 1,400+ employees are at the forefront of any decisions taken by the board of directors. Given the challenging financial performance in 2018, a number of difficult decisions had to have been made with regard to organisational rightsizing. However, the number of employees affected was minimised and these decisions were made to safeguard the employment of the remaining employees. The decisions have been vindicated by the significantly improved financial performance of the business in 2019.

In addition, the board of directors has actively tried to improve engagement with the company employees with a project called ‘working together’. The ‘working together’ project involved a number of senior management visiting each site and listening to any issues regardless of size and scale and fixing as many of the issues as possible. This remains an ongoing project but has been a good start on the journey.

Social media platforms have also been used to further understand any key issues experienced by the company employees and these provide an open forum for constructive feedback.

(c) The need to foster the company’s business relationships with suppliers, customers and others BDL relies heavily on the long terms relationships with suppliers and customers.

BDL relies heavily on the long terms relationships with suppliers and customers. The board of BDL has invested in a central procurement team to ensure all major supplier relationships are managed centrally. There are central procurement arrangements with the major cost lines within BDL and these are closely managed to ensure these relationships remain for the mutual benefit of both organisations.

The BDL board of directors has a ‘customer service first’ policy in operation, focussed on ensuring solid foundations for any customer relationship. Customers are now account managed with operations at the forefront, with the board of directors focussed on given operations the best conditions to succeed. BDL has a number of extremely long term customers and hopes this continues going forward.

(d) The impact of the company’s operations on the community and the environment

The board of directors of BDL have invested heavily in a dedicated SHEQ (safety, health, environmental and quality) team. The team has a significant industry experience and plays a significant part in the decisions of the business.

In terms of environment, BDL has invests in new fleet and is 95+% compliant with the imminent clean air zone introductions in the UK, minimising environmental impact.

The board of directors also actively promote the ‘giving something back’ charitable programme, where charitable fundraising organised by employees is matched up to £500 per event.

(e) The desirability of the company maintaining a reputation for high standards of business conduct

The board of directors of the business employs suitably qualified and trained employees within each department as well as investing in the necessary IT systems. Despite the challenging financial performance in 2018, the board has continued to invest in new fleet, properties and systems to ensure high standards of business conduct are achieved. The Bibby Line Group Internal Audit team also provides further assistance in ensuring the company maintains high standards of business conduct.

(f) The need to act fairly between members of the company

The board of directors understands the need to act fairly between members of the company. The board continues to invest in a whistleblowing hotline for any activity deemed unfair, unprofessional or illegal behaviour, with any incidents fully investigated.

There is also a formal grievance policy in operation, with any allegations again formally investigated.