This section describes how the Directors have had regard to the matters set out in section 172(1)(a) to (f) Companies Act 2016 (the “Act”), in exercising their duty to promote the success of the Company for the benefit of its members as a whole.
- directors are required to have regard (amongst other matters) to the interests of wider stakeholders, as well as:
- the likely long-term consequences of any decision they make;
- the interests of the Company’s colleagues;
- the need to foster the Company’s business relationships with suppliers, customers and others;
- the impact of the Company’s operations on the community and the environment;
- the desirability of the Company maintaining a reputation for high standards of business conduct; and
- the need to act fairly, as between members of the Company.
The Company is an immediate holding company within Halfords Group plc (“Group”) and therefore, key decisions which affect the Group, this Company and stakeholders are principally made by the Board of the ultimate parent company Halfords Group plc. Further details of how the Board of Halfords Group plc have had regard to s172(1) (a) to (f) in the current financial year can be found in those consolidated financial statements, key elements of which include:
Our colleagues are at the heart of our business and are the driving force behind our success. We provide a working environment where our colleagues are able to realise their potential. The Group Board engages with this through training programmes, listening surveys and management development courses. Our colleagues are fundamental to the achievement of our customer experience, ambitions and therefore, the Group engages in regular recognition and reward sessions.
We build long-term relationships with our customers by offering a unique and differentiated omni-channel experience across motoring and cycling products and services. The Group engages with customers through satisfaction surveys, rewards, commercial website and social media engagement. Understanding our customers’ needs and behaviours allows us to deliver relevant products and services, retain customers and also attract new ones. It also identifies opportunities for growth.
Communities and the Environment
We are expected to act as a responsible Group and employer and to minimise the impact we have on the community and the environment. The Group engages in this through community investment initiatives, media channels, recycle initiatives and prison initiatives.
Our shareholders and debt funding providers enable us to access capital to further our business strategy. Our commitment is to protect and manage their investments in a responsible and sustainable way. The Company engages through regular communications, the annual general meeting and other investor relations activities (such as the investor perception study). Investors opinions are taken into account when determining strategy and regular engagement provides investors with an opportunity to discuss any areas of interest and raise concerns.
We maintain close relationships with our suppliers to enable us to deliver market-leadig products and services. We are committed to maintaining the highest ethical standards. Engaging with our supply chain means that we can ensure security of supply and speed to market. Our brand relies heavily on the high standards of our carefully selected suppliers, in order for us to deliver market-leading products and services. The Board engages with this through utilising Far East trading office developing mutually beneficial relationships, logistics efficiencies and environmental management and supplier conferences.
Government and regulators
Working closely with our regulators and the Government ensures that we maintain a reputation for high standards and business conduct, whilst also ensuring that products and services evolve. The Board engages this through Cycle-to-Work policy campaigning, DAB radio working groups, driver training and vehicle safety enhancements and engaging with VOSA, DVLA, TSI, ASA and HSE.
The Board believes that there were two decisions taken during the year of strategic importance, these are as follows:
- Disposal of Cycle Republic – the key stakeholders affected in this decision include the shareholders and employees. The Board ensured appropriate consultation took place in accordance with regulatory requirements. Decisions were made by the executive team in consultation with the Board after carefully considering employee impact. Impacted departments were consulted in respect of changes to job descriptions.
- Web replatform – the key stakeholders affected in this decision are customers. The Board took on feedback provided by customers in the design and decision making.