MID-MARKET COMPANIES FINANCIAL TIMES SPECIAL REPORT | Friday March 11 2011 www.ft.com/mid­market­companies­2011 | twitter.com/ftreports Groups look overseas for growth Award winners

For many, the key pany lifted its dividend by pre-tax profits fivefold in Company of the Year 20 per cent, reported the six months to Decem- (Sponsored by College Hill) to recovery has increased cash balances and ber, while Cookson, a spe- Winner Domino Printing been exposure to said it was investing more cialist in industrial ceram- Sciences. Shortlist: Croda in research and develop- ics and electronics, moved International, Shaftesbury, emerging markets, ment. from a £21m loss to a £189m Weir Group Page 3 says Oliver Ralph The company concluded: profit in the full year on a Entrepreneur of the Year “While economic concerns 30 per cent increase in (Sponsored by Evolution remain in western Europe, sales. Securities) Winner Richard ention the our strength in the fastest For many of these compa- Harpin of . Shortlist: name Domino growing regions of the nies, rising demand from Rob Cotton of NCC Group, Charles Dunstone of TalkTalk to an investor world, China, India, South emerging markets has been Telecom Group, Matthew Ingle in small and America and eastern key to the recovery. With of Howden Joinery Group Mmid-cap companies, and Europe, gives us confidence European and US markets Page 2 they are likely to start as we enter 2011.” still looking uncertain, thinking about pizzas. These themes – rising many companies in the New Company of the Year (Sponsored by Seymour Shares in Domino’s Pizza profits, strengthened bal- manufacturing sector and Pierce) Winner SuperGroup. have become as common a ance sheets and renewed elsewhere have been mak- Shortlist: CPP Group, Flybe sight on brokers’ buy lists investment – have been ing efforts to take advan- Group, Jupiter Fund in recent years as its deliv- common among mid-market tage of growth in Asia and Management Page 2 ery scooters have become companies over the past 12 beyond. on Britain’s streets. months. “Overseas growth is Fund Manager of the Year (Sponsored by Espirito Santo But this year, it’s another Engineering and manu- something no company can Investment Bank) BlackRock Domino that is stealing the facturing companies have afford to ignore,” says Peter Smaller Companies Trust limelight. Domino Printing been at the forefront. Last Tracey, head of corporate Page 3 Sciences, which makes the year demonstrated not only broking at Espirito Santo coding and labelling that the UK still has a Investment Bank. machinery used for bar vibrant manufacturing sec- Companies appear to codes and best-before dates, agree. According to a recent has been listed on the stock survey of FTSE 250 compa- market for 25 years. The proportion of nies and their advisers by However, the printing business from the PwC, the proportion of busi- technology world has never ness coming from the UK Best Investor set the London market UK was 65 per cent has fallen from 65 per cent Communication alight, and the company five years ago to 53 per cent (Sponsored by Redleaf five years ago but Communications) Winner has attracted only a modest today. It’s expected to fall The Rank Group. Shortlist: amount of City interest. is 53 per cent now to about 47 per cent in 5 , This year, though, Dom- years time. Homeserve, Telecity Group ino Printing has scooped Recent merger and acqui- Page 3 the coveted Company of the tor, but that many of the sition activity across the Turnround of the Year Year Award at the PLC companies are world lead- market supports these find- (Sponsored by Espirito Santo Awards, which seek to re- ers in their specific niches. ings, with companies Investment Bank) Winner cognise the achievements of Those that came through increasingly directing their Volex Group. Shortlist: Avon the UK’s small and mid-cap the recession in good shape firepower toward emerging Rubber, Kofax, Wolfson companies (defined as main- powered ahead in 2010. markets. Microelectronics Page 4 market companies outside Weir, the Glasgow-based Last November, Thomas Best Performing Share the FTSE 100). manufacturer of parts for Cook expanded in Russia (Sponsored by Espirito Santo The company, along with the oil and gas sector, was through the acquisition of a Investment Bank) Volex Group the other award winners, the most spectacular exam- majority stake in Intourist, Page 4 was chosen by a combina- ple. Rising demand for its once the Communist gov- tion of a panel of City fund products was reflected in a ernment’s travel agency but Best Technology (Sponsored by SJ Berwin) managers and brokers, and rising share price during now profiting from sending Winner Renishaw. Shortlist: votes from FT readers. the year – it increased by wealthy Russian tourists , , Domino’s leap into the more than 150 per cent around the world. United Wolfson Microelectronics limelight says much about between January and Business Media last month Page 4 the state of the UK mid-cap December, pushing the announced four transac- Achievement in market in 2010, and its company into the FTSE 100. tions in a day – it sold print Sustainability story is typical of those But it was not the only publications in the UK and (Sponsored by PwC) companies that did well. In example in the industrial France, and acquired two Winner DS Smith. Shortlist: the year to October, its pre- sector. Renishaw, a exhibition businesses Mothercare, Quintain Estates & tax profits rose 86 per cent Gloucestershire-based geared towards the growing Development, Telecity Group to £52.1m on sales that were maker of precision measure- Page 4 The London Stock Exchange, where Domino Printing Sciences has been stealing the limelight Reuters up 17 per cent. The com- ment systems, increased its Continued on Page 2 2 ★ FINANCIAL TIMES FRIDAY MARCH 11 2011 Mid­Market Companies Groups Leaders show look overseas how to grow for growth

Continued from Page 1 a business Indian middle classes. And according to the PwC survey, 23 per cent of mid-market compa- from his first big idea, a mobile phone nies are now looking to China Entrepreneur of the Year retail chain, into the fundamentally for M&A. different business of providing tele- Expansion overseas has not Building a company from phone and broadband connections. just been through M&A, how- start­up to the top is a rare Mr Dunstone started Carphone Ware- ever. A number of companies house in 1989 with £6,000 of savings have opted for organic growth. skill, says Jonathan Moules and built it into one of Europe’s largest Mothercare is one, opening mobile phone retailers, leading it stores in both India and China. through its main market flotation in All this activity has been usinesses change as they grow, 2000. made possible by the improving so the entrepreneur who can He was also instrumental in Car- financial health of mid-market take a company from kitchen phone Warehouse’s transactions with companies. The crises – and table start-up to a multina- US-based electronics retailer Best Buy, emergency fund-raisings – that Btional company is a rare commodity. including the successful growth of Best accompanied the recession are One that can then run the company as Buy Mobile in the US. largely over. a publicly quoted business is even Not satisfied with creating a success Companies have spent the rarer still. from one idea, Mr Dunstone went into past two years rebuilding their It is a point noted by Robert Craven, the highly competitive market for balance sheets and retaining the managing director of The Directors’ mobile phone, broadband and tele- cash generated through the Centre, which advises owner-managers phone services with his business improved trading situation. on how to grow their businesses TalkTalk. “FTSE 250 companies have quickly. He developed this business into the pretty robust balance sheets,” “Very few people are cut out for that second-largest residential broadband says David Snell, partner at kind of leadership,” he says. provider in the UK, with 4.3m custom- PwC. “Don’t underestimate the The UK has been seen as a less entre- ers, through a combination of technol- amount of cash these companies preneurial nation than countries such ogy innovation, dealmaking and clever can use to fund growth.” as the US, because it has lacked the marketing. That financial health has also high-profile founders who take their The company’s sponsorship of ITV’s led to rising dividends. Accord- businesses to great heights. X Factor was a particularly successful ing to research from RBS, 47 per That is no longer so much the case, subscriber recruitment tool. It also cent of companies in the Hoare as several ambitious British entrepre- shook up the market for broadband by Govett Smaller Companies neurs have come through the ranks. marketing it as a free service, bundled Index (excluding investment One of those is Rob Cotton, chief with a telephone contract. companies) increased their divi- executive of NCC Group, a computer TalkTalk demerged from Carphone dends in 2010. Meanwhile, only 2 security business, who is shortlisted in Warehouse early last year and now has per cent of companies omitted the Entrepreneur of the Year category. a market capitalisation of more than their dividends during the year, He has described his business as one £1.4bn ($2.2bn). down from 17 per cent in 2009, of the neglected army of mid-sized However, Mr Dunstone remains while only 7 per cent cut them, operators that drive the regional econ- active in both companies. He is chair- down from 18 per cent in 2009. omy. “We have not had any support for man of Carphone Warehouse and exec- The rising confidence, our activities,” he said. “If we were utive chairman and the largest share- improved trading, renewed the proverbial one man and his dog holder of TalkTalk. balance-sheet strength and operation, we would be funded for the Matthew Ingle, chief executive of return to dividend growth have dog.” Howden Joinery Group, is another been reflected in share price Mr Cotton is clearly not one to sit example of a founder who has built – performances. around and mope, and his Manchester- and remains in charge of – a business Small and mid-cap companies based IT services business, whose cli- affecting people all across the UK. outperformed the wider market ents include Vodafone, the BBC and He set up Howden Joinery in 1995 as in 2010. According to RBS, the National Grid, has gone from strength a supplier of kitchen units and joinery Hoare Govett Smaller Compa- to strength under his guidance. equipment to small builders. It now nies Index rose by 26.4 per cent In the past year, Mr Cotton has taken has 243,000 registered customers from in 2010, outperforming the FTSE the company from Aim, a sub-market 489 depots and employs more than 5,500 All-Share by 11.9 per cent. of the London Stock Exchange, to a full people. And yet despite all this listing on the main UK exchange and The financial crisis has had a devas- Eighteen years ago, Richard Harpin was looking for the next big business idea. Homeserve is now capitalised at £1.5bn renewed confidence and positive achieved revenue growth of 49 per cent tating effect on all sorts of businesses share price performance, not on a profit increase of 25 per cent. involved in the construction sector. everyone is bullish. Much of the In addition, he has overseen a series However, Mr Ingle has successfully Winner Richard Harpin caution surrounds the prospects of strategic expansion plans, including steered Howden through the tricky for the UK economy. the acquisition of several complemen- trading conditions, having created a Richard Harpin describes himself as a was asked to come up with a new would go to America, copy a business Despite efforts to diversify, tary businesses in other countries. strong entrepreneurial culture in the “born entrepreneur”. By the age of 20 business selling plumbing services. idea and bring it back. It is great to many small and mid-cap compa- NCC has benefited from the growing business. he had set up five businesses, including What emerged was Homeserve, a know we have done it the other way nies are still solidly UK-based. importance of risk management in the This month, the company announced a mail­order fishing tackle business that business, now capitalised at about round.” The full impact of government boardroom and the feeling that compa- a 47 per cent rise in full year profit to turned to offering the fish hooks as £1.5bn, selling insurance against Now, 18 years after founding spending cuts is still to come nies need to protect their data and soft- £100.9m. earrings for customers’ wives, but Mr domestic emergencies, such as a burst Homeserve, Mr Harpin claims that being through, while rising inflation ware assets. Group revenue increased to £807.9m, Harpin was still not satisfied, writes pipe. entrepreneurial is still central to has increased the possibility of The group has been planning to from £769.5m last time, with sales at Jonathan Moules. The business, which demerged from everything his business does. a rise in interest rates at some diversify from the profitable, but UK depots open more than a year up “I was really looking for the big South Staffordshire Water in 2004, has “I like to think that we are a medium­ point this year. Companies slower-growing escrow business, in 3.6 per cent and gross margins rising business idea where I could invent a since expanded into France, Spain, sized company that will one day exposed to government con- which copies of proprietary software 3.6 percentage points to 59.8 per cent. market that didn’t exist,” he says. Belgium, Italy and the US, where it become a big­sized company, but I want tracts or consumer spending are sent to NCC as an IT system Clearly, not every entrepreneur has That opportunity came when Mr operates in more than 21 states. to remain a company that thinks like a face a tricky time. back-up, and focus on information the ability to take a company from Harpin took a consultancy assignment The thought of providing something small start­up business would,” he says. Some investors have already security and website performance. start-up to something much larger, but at South Staffordshire Water, a small that Americans never had before “It is about more delegation, but it is been burnt. The collapses last The shortlisting of Charles Dunstone these individuals, all shining lights in utility based in the West Midlands, and pleases Mr Harpin. “I always thought I equally about leading from the front.” year of Rok and Connaught, two recognises his achievements in moving their sectors, show that it is possible. building and maintenance com- panies, are still fresh in the memory. Others in the small and mid- cap world face structural chal- lenges, with the internet and the supermarkets combining to put many specialist businesses Floats demonstrate buoyancy in testing times under pressure. The result is that companies and their owners are treading carefully. “The vast majority of New Company of Year Winner SuperGroup investors are cautious of what companies are doing,” says Insurance to aviation, SuperGroup is a fashion retailer offering quality men’s and women’s clothing and Scott Evans, head of small and funds to fashion, these accessories, predominantly for the youth market, writes Rod Newing. mid-cap equities at Espirito Julian Dunkerton, chief executive, helped found the business in 1985. It has Santo Investment Bank. contenders have what 59 Cult and Superdry stores, many of them in university towns, and owns the “They’re very cautious of pro- it takes to succeed, 77 Breed and SurfCo California brands. There are also 69 Superdry concessions viding companies with funds for and wholesale operations. investment but they are willing writes Rod Newing The company sells in 36 countries through distributors, licensees, agents and to back a specific investment franchisees and via its websites to more than 70 countries. where they can see an obvious All four shortlisted companies SuperGroup was floated in March 2010 at 500p, raising £125m for expansion return.” in this category are potential and valuing the business at £400m. It has since tripled in value. Those returns, says Mr Evans, companies of the year but, hav- It was founded to exploit a gap in the market for good quality stylish clothing, will determine how investors ing joined the market within the with David Beckham and Leonardo DiCaprio as customers. The “urban cool” will assess companies in 2011. past 12 months, they lack the positioning of its stores is aimed at matching the aspirations of its customers. “In 2009, investors were willing record of accomplishment to be “Generating, harnessing and sustaining an entrepreneurial spirit and creative to refinance businesses. In 2010 considered for that award. culture within a dynamic and efficient corporate structure have been central to there was more willingness to Nevertheless, they are all SuperGroup’s strategy and success,” says Mr Dunkerton. allow companies to go off and well-established private busi- Unusually, the company does not advertise or market its brands or channels invest. 2011 is about asking com- nesses that have demonstrated and does not discount, instead depending on word­of­mouth recommendations. panies to prove that the returns both growth and management “A determined lack of advertising or overt selling has fostered a mystique that are there.” qualities. has proved compelling,” says Mr Dunkerton. “Developing a powerfully theatrical They join a market where, in­store experience has further enhanced the brand’s allure.” after tough times in 2009, inves- Retail is going global, with the internet and social networking enabling brands tors in the UK’s midsized com- to cross borders easily and become internationally recognised. “What began on a Contributors panies were looking for a better market stall in the early 1980s has become an internationally recognised brand,” Superdry Oliver Ralph performance in 2010. These busi- Mr Dunkerton concludes. clothing, UK Companies Editor nesses are more sensitive to the “Our opportunity is global and our ambition is to be global, without SuperGroup’s economic environment than compromising the strengths and values that have got us to where we are today.” top brand. Jonathan Moules their FTSE 100 counterparts – Enterprise Correspondent they suffer more in a recession, but recover more quickly as Michael Kavanagh, Courtney Weaver conditions improve. purse, mobile telephone or keys, with modern crimes such as including Arctic weather condi- Europe” markets, as well as during the process and in the UK Companies Reporters “The most pronounced change as well as support in the event card fraud or identity theft are tions. Passenger volumes and themes such as socially respon- period since then.” for mid-market companies since of identity theft. It has more as present in Shanghai as they annual turnover stayed rela- sible investment. Stuart Counsell, UK managing Masa Serdarevic the credit crunch, has been the than 10m policyholders in 15 are in London.” tively stable at 7.2m and £570m The company floated in June partner for finance and legal at Financial Services Reporter emphasis on cost reduction,” countries across the world, Flybe has managed to flourish respectively. at 165p a share, raising £220m. Deloitte, is seeing a growing says Steve Green, head of corpo- including China. in a hostile aviation sector that “What has made Flybe such a The launch took place against a sense of optimism among mid- Andrew Baxter rate business at Zurich Insur- The company floated in March has seen many of its competi- success over the past few years challenging backdrop. A market companies, even more Senior writer, Special Reports; ance. “Increasing cash flow and 2010 at 235p a share and one tors struggle. In 2010, it signed a has been an unbending adher- number of flotations had been than before the recession. Commissioning Editor reducing working capital and year on the stock is almost 30 multibillion-dollar deal for up to ence to a core strategy,” says Mr delayed from earlier in the year In the past six months, their Rod Newing, finance have become a critical per cent higher with a market 140 new aircraft to support its French. “We are a regional air- because of poor sentiment and attention has switched to an Ross Tieman issue, particularly for those that capitalisation of more than planned European growth. line which flies regional aircraft investors had become highly expansionary outlook and gear- FT Contributors have relied on bank finance.” £500m. Group turnover for 2010 “The float had a pretty long on high-frequency regional selective. The share price has ing up for growth. CPP Group has more than 30 rose 11 per cent to £325.8m. gestation, as it was the fulfil- routes, so we don’t aim to be a nearly doubled since, to a mar- “Debt is seen as relatively Steven Bird years of experience in helping The company’s strategy is to ment of the wishes of our mini-BA or a mini-Ryanair. ket capitalisation of about cheap and corporate balance Designer customers manage the trials deliver high growth through founder, Jack Walker, who “We are the biggest domestic £1.5bn. sheets have been very well and tribulations of modern life. online sales, offering packaged sadly passed away in 2000,” airline in the UK and we will “It was crucial for us to dem- looked after in the past two or Andy Mears It provides “life assistance” accounts and focusing on key explains Jim French, chairman export our business model to onstrate clearly the stability of three years,” he says. Picture Editor products and services, including emerging markets, such as Tur- and chief executive. continental western Europe, our business throughout market “Many mid-market companies protecting credit and debit cards key, India, Mexico and China. “Flybe was able to come to where we believe there is real cycles; and the strength of our are looking overseas to drive For advertising details, contact: and personal identity and insur- “The life assistance market is the market in December 2010, at scope for growth.” investment culture and team,” top-line growth. If they are not Robert Grange ing mobile telephones. large and fast-growing,” says a time when floats were being Founded more than 20 years says Edward Bonham Carter, its in international markets, there Phone +44 020 7873 4418 The group’s call-centres focus Eric Woolley, its chief executive. pulled,” he adds. ago, chief executive. is a good possibility that merger Fax +44 020 7873 4006 on providing customer assist- “As bankable populations grow The company managed to operates in the retail mutual “It was pleasing to have gar- and acquisition activity will Email: [email protected] ance during stressful life events, and plastic card usage keep operations going through fund market. It covers the UK, nered strong support from insti- come back to establish overseas or your usual representative such as loss or theft of a wallet, increases, anxieties associated severe service disruptions, Europe, Asia and “emerging tutional and retail investors operations.” FINANCIAL TIMES FRIDAY MARCH 11 2011 ★ 3 Mid­Market Companies Long­term strategy is key to success

Company of the Year Winner Domino Printing Sciences

Ross Tieman says the Domino Printing Sciences, a FTSE 250 company that contenders are united by makes clever machines for labelling packaging, wins the Company of the Year award, writes Ross Tieman. consistency, innovation, With almost 95 per cent of its record £300m sales in focus and customer ties 2010 made outside the UK, and China now its largest market, Domino has ridden the globalisation wave with aplomb. f there is one overriding feature A 32­year record of revenue growth, with sustained that unites the diverse contend- dividend increases since it floated in 1985, confirm, ers for this year’s Company of however, that Domino doesn’t chase sales at any price. the Year award, it is that each Pre­tax profits were up 86 per cent last year to £52.1m, Ihas prospered by relentlessly focusing reflecting a gross margin of 49.7 per cent. on a clear long-term strategy. Yes, 2010 was a year of recovery, but Domino had Whether battling in global markets, laid the foundations by early restructuring in 2008, and as are Weir Group, an engineer, by investing heavily in research and development, says Croda International, a speciality Nigel Bond, group managing director. chemicals company and Domino The aim was not merely to trim costs, but to Printing Sciences, a label printing integrate companies and technologies that it had expert, or building a thriving London acquired so as to create a more coherent range of property portfolio like Shaftesbury, products with a common operator interface. The consistency and focus matter. ongoing roll­out of these new designs of ink­jet and That is true for management too. thermal printers should underpin further growth. Jonathan Lane has been chief execu- Though the pace may slow after the catch­up in tive at Shaftesbury for the past 25 2010, Domino has worked hard to make its machines years. Mike Humphrey has given more reliable and more affordable Mr Bond says. Croda consistent direction since 1999, Andrew Herbert, the company’s finance director, and Weir’s resurgence owes much to notes that sales of machines account for 40 per cent of the course set by Keith Cochrane revenue; inks and other consumables provide another since he became chief executive in 33 per cent, with the balance coming from spares and 2006. services. So Domino focuses intensely on its customers. Backed by strong and experienced “What we strive to do is have the highest quality, management teams, and well moti- reliability and best value products in the market,” says vated employees, the contenders have Mr Bond. Secondly, he says, “we have worked hard to all delivered outstanding returns for ensure we have a good image and reputation for the shareholders. quality of support we give customers. They are under Mr Humphrey suggests that a sound enormous pressure to be efficient. Customers must strategy, smart people and hard work know that if they need you, you will be there.” are necessary foundations. They have Top quality people are Mr Bond’s final ingredient for helped deliver a decade of unbroken success, including skilled and wise managers. “We have profit increases at the Yorkshire- a management team that has been together for many based chemicals company, which not years, and the senior management team of nine has, only achieved £1bn of sales in 2010, collectively 135, years of experience.” but more than doubled pre-tax profits Clearly, Domino’s 2,150 people know how to succeed to £192m. in bad times, as well as good. Domino sells most of its machines for labelling packaging outside the UK, with China now its largest market These are the fruit of a 12-year strat- egy to refocus Croda on markets with inherent growth potential. “We start Success derives from innovating, at the Glasgow-based engineer are by Mr Cochrane, this has driven the Founded in 1986 and run by Mr pre-tax profits to £171.9m, after a from the position that we are a mar- with customers, to meet emerging bulging thanks to soaring demand for steady upward march of revenues, Lane ever since, Shaftesbury has not £58.1m loss in 2009, when the com- keting company that happens to be in needs. Croda scientists in more than minerals, oil and gas, and power which reached £1.64bn in 2010, up 18 just profited from acquiring more pany had to reduce valuations. But chemicals,” Mr Humphrey says. 30 countries work on customer solu- plants. For Weir makes the high-tech per cent. Pre-tax profits, up from than 500 buildings housing restau- stripped of disposals and valuation So Croda applies its expertise in tions, collaborating with Croda’s own pumps, valves and related equipment £170m to £277m, again exceeded expec- rants and bars, shops, offices and movements, there was a steady oper- chemicals based on fats and oils to centres of excellence, universities, and needed by miners and drillers to tations, putting the company on track homes in these prime West End loca- ating profit progression, from £47.7m helping manufacturers achieve the start-ups via steering groups. extract and process minerals, and by to achieve its planned doubling of pre- tions. It has helped transform what in 2009 to £49.4m. qualities they want in consumer or “We believe in open innovation,” Mr thermal and nuclear generators to tax profits between 2009 and 2014. were once rundown areas into distinc- With every property within a 15- industrial products. Croda’s consumer Humphrey says. produce electricity. Analysts say the company has ample tive districts where people go to shop minute walk, management is attuned division supplies specialist ingredi- The upshot is a decade of organic This place at the sweet spot of the firepower for further acquisitions. or have a day or night out. to its buildings and their users. ents for haircare products, Omega3 sales growth of between 5 and 10 per minerals and power cycle did not Buying more properties at sensible Sensitive refurbishments and care- This is another feature that marks oils for healthcare customers, and cent a year, culminating today in happen by chance. A decade back, prices is also one of the biggest chal- ful selection of tenants to promote out all the winners. Alongside sound chemicals that carry the treatments plans to expand capacity across a Weir, founded in 1871, was flagging. lenges for Shaftesbury. The property Chinatown’s Asian feel are among financial management, innovation devised by crop care manufacturers series of plants, while simultaneously But a strategic refocus beginning in company is loved by its shareholders strategies that have delivered excel- and a focused long-term strategy, the into growing plants. raising the dividend and resuming 2002 saw disposal of underperforming for concentrating its £1.48bn portfolio lent returns to shareholders, culmi- contenders for Company of the Year Its industrial specialities arm helps share buy-backs. businesses, and reorientation on the in some of central London’s most cele- nating in a 24 per cent increase in net are all very close to their customers. paintmakers enhance durability, Weir Group is another whose re- three key markets that fuel growth brated “villages”: Chinatown, Covent asset value per share in the year to In 2011, share performance depends lubricant manufacturers make focusing has brought it to the right today. Garden and the recast Carnaby Street end-September 2010, to 414p. on knowing and providing what cus- “greener” oils, and so on. place, at the right time. Order books Bolstered by targeted acquisitions district. Resurgent property values lifted tomers want, now and in the future.

Winner: The Rank Group

Shareholders Results webcasts at The Rank Group are communication via one­to­one and other Global exposure unlikely to include video any time soon, meetings. writes Andrew Baxter. Having clear objectives and allocating “At such point as I’ve got Cary Grant as resources accordingly is also integral to need to be my CEO, then we’ll do a video webcast,” Rank’s investor communication effort. helps lift BlackRock says Dan Waugh, the hall and casino “Every year there’s a little battle with the operator’s group strategy director. annual reports company, which wants me to “Having video doesn’t necessarily spend two or three times as much on it as across its total of 160 hold- augment the quality of the presentation – I am doing,” says Mr Waugh. “We are Fund Manager of ings, no one company kept well in fact, sometimes it can be quite always open to new ideas but have to see the Year stands out says Mr Prentis. distracting.” the value in it.” Instead, performance was This straightforward approach, focusing But it is senior management’s time that is Masa Serdarevic solid and steady across the on effectiveness and value for money when often the scarcest resource. Hence a key group. resources are tighter than at bigger role for the website is making critical on the strategy of This is partly because the informed companies, lies behind Rank winning this information easy­to­find and clearly laid out. the winning team largest holding is only 2 per category. “I like to think we get the basics “This frees up time and resources to cent of the portfolio. “We right,” says Mr Waugh. engage with investors in other ways,” says don’t want any one holding site or other documenta- The most important factor in getting the Mr Waugh. To profit from investing in to [be able to] cost us,” Investor tion, as it could be”. company’s message across to investors is The future for Rank’s investor smaller UK stocks last year, explains Mr Prentis. Communication The shortlisted companies to know who the target investors are, so communication effort will be “more of the Mike Prentis had to look It also reflects the difficul- in this category have all that resources can be deployed as same”, he says, with the traditional mix of internationally. That is, tar- ties in investing in small Transparency and shown that they under- effectively as possible, he says. monthly investor updates, roadshows in get stocks with significant companies, where the stock stand these issues and chal- Reaching investors involves a mixture of various territories and site visits. global operations, given the is sometimes not very liq- consistency are key, lenges clearly. broadcast – using decent sell­side brokers “We innovate to meet investors’ needs UK economy’s sluggish rate uid. says Andrew Baxter Matthew Springett, head to engage with potential investors really rather than come up with something wizzy of recovery. Mike Prentis: five hurdles This was a particular of investor relations at helps, says Mr Waugh – or narrowcast that nobody was asking for.” The BlackRock Smaller issue during the financial Telecity, the European data Companies Trust grew its This feature was all the crisis, forcing the fund to There has probably never centre operator, says: “We net asset value by 61 per more important last year, allocate more money to been a time when communi- aim to do both the pro- cent over the year, strongly as input prices shot up. “It’s larger stocks. But in the cating effectively with active side of investor rela- outperforming the 29 per critically important that past 18 months, it has been investors has been so tions [meeting existing and cent rise in its benchmark. our holdings can pass unwinding these positions important for senior man- potential investors] and the Mr Prentis, who has run increased input prices on to and moving back towards agement at the UK’s mid- website and annual reports the £324m fund for more customers,” he says. smaller companies where cap companies – without to a good standard but also than eight years, attributes Companies that return a Mr Prentis sees greater taking their eyes off run- in a co-ordinated fashion.” much of last year’s success high level of profits to opportunities. ning the business, of “As a result, the message to a combination of highly shareholders through divi- “Small-caps are generally course. is clear, consistent and com- honed methodology and an dends are also favoured, as not well-covered. [It means] Richard Davies, chairman plementary between these element of good fortune. is a strong record of beating we can get close to the com- of the Investor Relations channels of communica- “Last year was our sort of earnings expectations. panies and find some great Society and managing direc- tion.” He notes that some year. The market was Last year in particular, opportunities,” he says. tor of RD:IR, an investor investors’ first port of call appraising companies on many of the fund’s larger Today, about 60 per cent relations consultancy, may be the website or quite a fundamental basis shareholdings reported bet- of the fund is invested in says the investment man- accounts, followed by a and that suits us,” he said. ter results than the market “true small caps”, namely agement landscape has meeting, while for others it The common feature was expecting. companies with a market been reshaped in recent will be the reverse. Hence across the fund’s core hold- capitalisation of less than years. the need for consistency. ings was the global nature £400m. “Larger companies are “The core drivers are of their earning streams. ‘We start with As a veteran of the pri- tending to attract relatively openness, transparency, “All are very interna- small holdings vate equity industry, Mr more funds, because they relationships and trust, and tional businesses,” Mr Pren- Prentis has made a career are seen as better invest- I think everything else tis says, highlighting in par- and see how it out of investing in small ments than the smaller flows from that,” Mr Sprin- ticular Abcam, a developer goes. If we’re and midsized private and businesses,” he says. “So gett says. of antibodies, Fidessa, a listed companies. smaller businesses have to Keeping both the pro- trading technology group, happy, we build the After starting his career pedal twice as fast. active and passive channels Numbers game: Rank Group has a straightforward approach to communication Newscast and Domino Printing, as a chartered accountant, “Mid-sized companies are fresh is another priority, as which develops industrial position over time’ he moved to 3i, the private finding it tougher than ever illustrated by Electrocom- printing equipment. equity group. It was a before to get their message ponents. The distributor of conducted over the web. the company makes an egy can have its pitfalls. In scouring a huge Lastly, a strong balance “great background for out – unless they are ‘pop electronics and mainte- Accessibility is as impor- announcement. Mark Thomas, a business market that encompasses sheet is much sought-after, assessing smaller compa- stocks’ with great PR and a nance products set the tone tant as consistency, says Apart from outsourcing strategy specialist at PA more than 1,500 potential especially in the aftermath nies, [because] the invest- really exciting story that for the year with a very Martin Bennett, chief finan- some web development Consulting Group, says that companies, Mr Prentis sets of the financial crisis. ments are not liquid at all,” everybody knows about.” successful investor day in cial officer of Homeserve, work, all the shortlisted large and mid-sized compa- five main hurdles that need However, when the fund he says. Mr Davies says midsized February, says Simon Bod- the home emergency insur- companies run their inves- nies should take a leaf out to be jumped before he con- makes new investments, it Going into the current companies should step up die, finance director. ance and repair provider. tor relations effort with of US investor Warren Buf- siders investing in the does not expect the com- year, the fund retains its the use of their websites “It was almost like speed “We spend a lot of time small, integrated in-house fett’s book and try to build stock. pany to be strong in all strong bias towards compa- and branding in general. dating. We split the brokers making sure that – whether teams. a small but loyal and long- Trust in the management these five areas. nies with international Big companies may have and analysts into groups of it is a webcast or the results “We do it all ourselves lasting base of sharehold- is the single most important “We start with small exposure. More than 50 per greater resources for this, four and then did four ses- presentation itself – inves- and that helps make it ers. thing. “We have to feel holdings and see how it cent of revenues come from but the need to use these sions of about 15 minutes tors find it easy to get hold real,” says Mr Bennett. “People need to look at they’re really doing some- goes,” Mr Prentis says. “If Asia, emerging markets and channels is proportionately each. There was a lot of of the information,” he “These guys live and investor relations as a long- thing different, he says. we’re happy, we build the the Americas. higher among their smaller Q&A, and it enabled inves- says. breathe the business every term game. I’m not sure “We look for evidence they position over time.” Some 17 per cent is from counterparts. tors to explore areas of the Analysts receive particu- day, rather than being anyone is going to get any can grow sales organically Consequently some of the continental Europe with the Articulating the invest- strategy and get close to the lar attention. “Investors are from a production house or lasting gain from a short- year after year. Acquisi- fund’s largest holdings are balance made up of reve- ment case clearly, using all management.” always saying: ‘We do like broker.” term burst,” he says tions are something we’re also its oldest. It started nues from the UK. the channels available, is Meanwhile, the corporate well-briefed analysts who A lot of time is spent by “Building a relationship quite wary about.” investing in two of its big- Mr Prentis says: “Small important for all compa- website will benefit from really understand your the shortlisted companies with a manageable number He also looks for busi- gest holdings, Fidessa and caps can be as international nies, but for some mid caps, innovation on its transac- business’,” says Mr Ben- and their peers, large and of investors with, ideally, a nesses with healthy pricing Aveva, which develops com- as the FTSE 100, but you says Mr Davies, “the strat- tional counterpart, says Mr nett. He calls separately small, in broadening their long holding period will power, who “get stronger at puter software, more than can have much higher egy may not be as clearly Boddie. More than half each of the analysts who investor base, in the UK serve [mid-sized and other the expense of weaker com- 10 years ago. growth. That’s what most defined, either in the web- the company’s business is follow Homeserve whenever and overseas, but that strat- companies] well.” petitors”. Looking at performance people don’t get.” 4 ★ FINANCIAL TIMES FRIDAY MARCH 11 2011 Mid­Market Companies Long and Winner Volex Determined to remain leaders in their fields tortuous its case the loss of key con- properties of the new nano- Best Technology tracts with Apple – left it material graphene. struggling financially. Gloucester-based Reni- It is essential to Its reward for maintain- shaw is another technology- invest during hard ing intensive investment in led engineering company road back developing its products was that has insisted on main- times, too, writes a strong surge in sales last taining its R&D commit- Michael Kavanagh year, up from $121m to ment – with investments $157.3m, and a return to often not coming to fruition operating profit, as it won for years – in spite of the to profit Building your business by favour among leading problems created by the supplying customers with global makers of smart- economic crisis of late 2008 the tools of their trade is a phones, tablet PCs, e-book and 2009. “Some of the people who simple concept. To use a readers and the latest gam- A sharp fall in demand Turnround of Year were sceptical about phrase, it is not rocket sci- ing devices. for the metrology equip- whether we had imple- ence. In spite of financial con- ment used in the operation It has been a tale mented sustainable change However, for the most straints, Wolfson actually of machine tools, used of resilience in are now believers,” Mr Bish innovative British compa- increased its R&D spending extensively in the automo- says. nies, it is rocket science. last year from $37.6m to tive and other industrial adversity, reports In January, the company For some, it is also brain $42.8m, as development sectors, forced it to lay off Courtney Weaver disposed of its hardware surgery. remained its leading cate- staff for the first time in its business and is now focus- London-listed mid-cap gory of overhead compared history. Now, the orders ing on its software division, companies are hard at work with the $24m spent on dis- and jobs are back. It has been a tough slog for which Mr Bish says will be developing market niches tribution and selling, and But the company has the contenders for this the source of growth for the with designs that stand $19.9m on administrative stuck by its strategy of year’s Turnround of the company. behind world-leading tech- expenses. investing in its medical Year award. Only now – Like Kofax, , nologies that pervade our Oxford Instruments, the division, where it has just after two years of restruc- a military gas mask manu- homes, offices, factories and first commercial spin-out sold the first of an turing, painstaking cost facturer, has also had to hospitals. company from Oxford uni- enhanced range of neuro- cuts and disposals – are the pare down to redefine itself. Some of these are used by versity, also increased its surgical robots. four companies starting to Established more than 100 computer chips used in R&D spending, as its order Despite being lossmaking, see their efforts reflected in years ago, Avon first smart phones and computer book reached new highs at Renishaw’s medical divi- the bottom line started out as a manufac- tablets, MRI scanners that the interim stage. sion is expected to become It is a sweet reward for turer of rubber tyres for detect illness early enough The company, which suf- a counterbalance and a the groups’ management cycles. It later expanded to to save lives, polymers to fered amid a downturn in more steady earner than teams and also for their add automotive parts, gas replace human hip joints demand among industrial the company’s established shareholders, who managed masks and milking equip- and metal in military jets, customers for its portfolio business, which has a large to maintain faith in the ment divisions to its reper- and brain probes used to of products, is now benefit- historic exposure to the businesses’ future, even toire, but in the past five control the symptoms of ing from a release in automotive sector. when they appeared on the years has scaled back mas- Parkinson’s disease. pent-up demand as compa- This strategy is similar to edge of a precipice. sively. Volex: ‘The company is aligning itself with its global customers.’ Science Photo Library The buffeting of the world nies purchase the tools to that emerging at Victrex, For Kofax, the image- The automotive compo- economic downturn did not crank up their own R&D the producer of high-tensile, scanning software maker, nents unit and its rubber When Ray Walsh took the stage at a Volex the telecoms, industrial and healthcare leave such companies activity. heat-resistant plastics used the restructuring efforts mixing plant have both investor day last month, looking back at sectors. immune from the need to Beyond its involvement in cars, aircraft and hip first kicked in February been sold off, while its milk- him in the audience were a group of 60 “The company is aligning itself with its cut costs and staff, as they in developing MRI scanners, replacements. 2008, shortly after Reynolds ing equipment unit has analysts and fund managers from global customers,” says Richard coped with squeezed its products are also used to A bounceback in demand Bish took the helm as chief been outsourced to the institutions including Schroders, JPMorgan, Hickinbotham, an analyst at Charles demand for their applica- measure the thickness of in 2010 allowed it to declare executive but well before Czech Republic. although and Jupiter, writes Courtney Stanley, Volex’s house broker. “Increasingly tions as markets dipped. industrial coatings, the a special dividend of 50p fol- the global financial crisis. the dairy business remains Weaver. its regional customers are not able to come But what most have in amount of fat in chocolate, lowing a strong recovery in Mr Bish outlined plans to an integral part of Avon “Two years ago,” Volex’s 45­year­old chief up with everything they need” so they are common is a commitment and to analyse rock cores. full-year revenues and prof- centralise the company’s Group, the company is also executive jokes, “nobody in that room would turning to Volex for the cables they cannot to maintain high levels of And while the aim of the its. management structure, cre- focusing on the defence have returned my phone calls.” produce in­house, he says. expenditure in research company, which started in But the high-margin and ate a performance-based industry. Turning round Volex, an electric and Among the company’s customers are big and development as they a garden shed, is “develop- steady sales at its Invibio compensation system and The company has a big telecom cables producer, has not been an names such as Apple, Dell, Ericsson and sought to ensure, whatever ing commercially successful unit, which specialises in set up a programme to sell contract with the US mili- easy job. Yet thanks to prudent cost­ Samsung. the state of the world econ- products”, it is nice to know polyketone-based medical to its large corporate and tary and in the past year cutting, a refocusing on the customers’ From a cost­cutting perspective, Volex’s omy, that they would that leading scientists like implants, helped steady the state customers directly. has won new contracts with needs and support from its new long­term biggest change was selling its wiring remain as technological your products, too. ship during recession. Italy, Canada and Saudi shareholders, the company is coming out of harness business, which made electrical leaders in their global mar- Oxford Instruments’ The company has raised Arabia. the recession in reasonable shape. systems used in commercial vehicles and ket niches. equipment is used by last its R&D budget from £4m ‘Some of the people To shore up its finances, The group’s share price more than the aerospace industry. The unit always ran Wolfson Microelectronics year’s winner of the Nobel to £4.6m, as it seeks to who were sceptical Avon has renegotiated its doubled in 2010, making it the best on thin margins and made a £21m loss on exemplifies companies that Prize for Physics, Professor extend the used of its poly- debt facilities and cut the performing share in the PLC awards as well discontinued operations at the time of its have invested heavily for Kostya Novoselov from the mer in the high-growth and about whether we cost of borrowing. Mean- as the turnround of the year. The company disposal. the future, even as a down- University of Manchester, lucrative medical implant had implemented while, last May it reported basic earnings per share of 9.3p Other restructuring changes were less turn in its markets – and in who is researching the arena. announced a new funding last year, versus a loss of 34.1p a share in pronounced. The company has gradually cut sustainable change plan to reduce its pension 2009. the number of its manufacturing sites from deficit. Mr Walsh attributes the jump to the new about 30 a decade ago to nine today, and Winner Renishaw are now believers’ In the year to September shareholder base, which recognises “the has simultaneously reduced its supplier 2010, Avon reported sales long­term value” of Volex in spite of its base and driven down net debt levels from Sir David McMurtry, chairman, chief in Britain. With an engineer’s precision, Sir However, the measures up from £100.9m to £117.6m, poor record in the past. (Previously, its £21m at the end of 2008 to less than £8m executive and leading shareholder at David, stated in January that his company took longer to implement while its pre-tax profit rose investor base was made up primarily of at the end of last year. Renishaw, has stared into the abyss of an had 248 vacancies, as he argued that because of the recession. from £1.86m to £7.1m. Earn- hedge funds and private equity firms.) The management created a pay structure uncertain and prolonged recession, but now government education policy should be He says: “In light of the ings per share were 15.2p, “The company had such a damaged based on performance review and moved has the luxury of looking back across it amended to ensure he had UK candidates financial meltdown, a lot of versus a loss of 0.6p a year reputation in the City and so many times its head office from Warrington to London. from the other side. to fill them. the benefits from the earlier. had over­promised and under­delivered. And a decision to work with just one global “We were losing millions a month without A record of investing an average of 18 changes were a bit slower The company also Everyone had lost faith in it,” Mr Walsh freight partner – instead of the 70 freight knowing when it would stop,” he says. per cent of turnover has allowed the to be realised than we antic- announced it would rein- says. forwarding companies it was using A collapse in demand in the automotive Gloucestershire­based group to maintain its ipated. state its dividend. The company’s story is a familiar one in previously – has saved it £1m a year. sector following the global economic technical edge, and it exports much of its “Beginning about a year Wolfson Microelectronics, the UK technology sector. Volex grew As Mr Hickinbotham says: “All these downturn forced the company to impose British­made output to China, the world’s ago, we began to report the third contender for the rapidly during the dotcom boom, thanks to things just sort of add up.” short­time working and compulsory leading exporter. financial results and other award, reported its first a quick series of acquisitions, but then This coming year, Mr Walsh says, Volex redundancies for the first time in its history. Sir David, who holds a 36 per cent stake performance metrics that quarterly profit in two reported flat sales for most of the next may consider making a few small However, its fortunes were restored in Renishaw, insists the company must validated the wisdom of all years for the third quarter, decade. acquisitions but emphasises the deals will during 2010 and Renishaw delivered a 75 continue to invest heavily to develop new the change we were imple- as the Edinburgh-based Mr Walsh joined in 2009, shortly after the be more like capital expenditure projects per cent increase in interim markets, such as his medical division menting.” audio chipmaker saw arrival of Mike McTighe as chairman. Every and will not constitute a transformation of turnover from £74m to £129m which manufactures brain probes In its results for the 12 increased demand for its other member of the chief executive’s team the company. and a leap in profits from and dental equipment. months to June 2010, Kofax chips in smartphones and has been brought in during the past 18 The chief executive will also be keeping £7m to £35.5m for the six “These are extremely announced year-on-year gaming consoles. months. an eye on the price of copper, which rose months to December. difficult products to revenue growth and While the company The new management did not have any above $10,000 a tonne last month. It is Asia’s growing develop, but therefore it’s improvements in its operat- reported a pre-tax loss of “grand new restructuring plan”, Mr Walsh While higher copper prices have slowed appetite for machine difficult for other people to ing income and cash gener- $1m in the fourth quarter, says. Instead, it simply went back to basics the company’s earnings momentum, Mr tools, for which Renishaw enter the market,” says Sir ation. analysts are still optimistic and began investing in the products its Walsh emphasises that the group’s provides key sensors, David. At its latest results, for about its long-term recov- customers actually needed. underlying business has remained stable. probes and calibration He has also dismissed the six months to December ery. so, it seems, are inves- The company, which also provides cables “Despite some very significant headwinds technology, along with the model of offshoring or 2010, Kofax reported that tors: the company’s shares for laptops and TVs, had a historic focus on on commodity prices, which affect our bounce­backs in contracting out production sales in its software busi- have doubled during the the consumer sector, but is now giving inflow costs, we have managed to hold the traditional markets of now prevalent among ness were up 20 per cent to past 12 months more attention to corporate customers in line on our margins,” he says. Germany, Japan and peers. $121.7m, while pre-tax profit Investors’ renewed inter- the US, that has “We are not teaching had increased from $1.6m to est in Wolfson comes on the restored its fortunes. other people what we can $18.1m. back of the company’s own been a death sentence for the other smartphones and Wolfson reported a 30 per Renishaw is an oddity do,” he says. Shares in Kofax rose as reinvention campaign. the group, Wolfson has tablets coming to market. cent increase in turnover in the UK­listed engineering much as 21 per cent on the In 2009, Wolfson lost its tried to turn it to its advan- The company says it is from $121m to $157m, enjoy- sector by maintaining a David McMurtry: news, their biggest jump contract with Apple Compu- tage, developing a new targeting a gross margin of ing a 67 per increase in vertically integrated urges changes in UK since December 1999, a sign ter, one of its biggest cus- product called the audio 50 per cent in 2011 on the turnover during the fourth manufacturing hub education policy of increased confidence in tomers. hub and ensuring that its back of a range of new quarter. Losses narrowed the future of the business. While the loss might have chips made it into most of product designs. For 2010, from $14.8. to $11.2m. Investors now show a greater sense of engagement

includes DS Smith and Telecity, be secured into the future.” Telecity Group operates a net- Sustainability winner and shortlisted respec- Winner DS Smith BioRegional Quintain is build- work of 24 independent data tively in this category, has been ing a zero-carbon community centres in prime city-centre Green issues are a compiled for the last 10 years. As a supplier of recycled packaging, DS Smith is By reducing steam pressure and bonding agents, based on the 10 One Planet Liv- locations across Europe. “Sus- central part of some “We have seen a real improve- the UK’s largest collector of waste paper. the company has reduced carbon dioxide ing principles at One Brighton, tainability is a fundamental ment in companies’ environ- Sustainability is not so much at the heart of its emissions by 400 tonnes without impacting a development of homes, offices driving force in our business,” companies’ values, mental and social practices,” business, it is its business. The company’s mantra product quality. and shops in the city on Eng- says Rob Coupland, its chief says Rod Newing says David Harris, director of is “differentiate through service, quality, innovation The company worked with Marks and Spencer land’s south coast. operating officer. responsible investment at and environmental solutions”, writes Rod Newing. on its “Plan A” Sustainability Plan, through its Nearly half the materials used “Data centres are heavy users FTSE4Good. DS Smith collects more than 1.7m tonnes of Severnside recycling business. In support of DS were recycled or reclaimed. It of energy, so we are keenly con- Mid-sized companies are not “For a number of years, com- used paper and cardboard in the UK each year, Smith’s submission for the Green Awards 2010, features a communal wood- scious of our impact on the generally as rigorously exam- panies were ahead of the invest- and uses it to make corrugated packaging. Nearly the retailer said: “This partnership has the long­ burning boiler, solar panels, environment. In every business ined and held to account by ment community in understand- 80 per cent of the paper in its corrugated term aims of making Marks and Spencer 100 per rooftop allotments, communal decision we take, we try to find their stakeholders as their large ing the importance of sustaina- packaging operations in 2009­10 was recycled. In cent waste recyclers across all offices and its sky gardens, a “green care- a way to maximise energy effi- global counterparts, and so bility issues, but investors have the same year, it reduced carbon emissions by 1.5 more than 400 stores. After the first year, more taker”, a car club and fresh pro- ciency and minimise our carbon experience less pressure to been playing catch-up and are per cent and water usage by 4.5 per cent. With a than 50,000 tonnes of waste have been recycled, duce deliveries from a local footprint.” address sustainability. now getting more engaged on turnover in excess of £2.1bn, including international essentially doubling the previous figures.” farm. Condorcet, its latest data cen- Indeed, Hugh Jones, manag- the issues.” operations, it employs more than 12,000 people. Miles Roberts, chief executive of DS Smith, says Quintain’s residential scheme tre in Paris, is designed to be ing director of Carbon Trust He says initiatives such as the The company operates a 14­day cycle. It collects that sustainability is central to the company’s at Wembley City incorporates a Europe’s most energy-efficient Advisory Services, has seen a United Nations-backed Princi- waste paper and packaging from all the leading business­model. “Our closed­loop solution is a key vacuum-based household rub- data centre, including hydrogen reduction in the number of pro- ples for Responsible Investment supermarkets, recycles it in its paper mills, differentiator,” he says. bish management system. A fuel cells and incorporating a fessionals employed specifically have been a catalyst, along with manufactures the cardboard packaging, and “Increasing the amount of waste we collect and series of underground pipes take “Climate Change Arboretum”. to manage sustainability issues. the Financial Reporting Coun- delivers it to consumer goods companies, so the transform each year is a vital part of our waste directly from users to a “We were determined to lead Nevertheless, some companies cil’s UK Stewardship Code. boxes are in the supermarket two weeks later. strategy.” central plant, where it is sorted by example and set the bar as have performed well. “More There is now a requirement by for recycling. high as we could for the indus- energy-efficiency work has fund managers to report on how In 2007, Mr Wyatt established try,” says Mr Coupland. taken place in sectors where they engage with companies on siderations form an integral Last year, two years into its Quintain Estates & Develop- the Sustainable Environment Mr Jones at Carbon Trust con- energy costs are substantial, so broader environmental, social part of its core business values. five-year target, it achieved the ment is one of Britain’s largest Foundation, a charity to develop cludes that the leading mid- there is a clear financial impera- and governance issues. Both brands are synonymous Carbon Trust Standard and property regeneration compa- and support strategies for creat- sized companies are not just tive,” he says. Mothercare, last year’s Com- with children and parenting. agreed a three-year global part- nies. “Our business model is ing buildings and towns which “doing” sustainability around “Also, there is a bigger incen- pany of the Year, owns the “Thinking long-term to provide nership with Save the Children. predicated on long-term owner- are in harmony with nature. the margin. “In the medium and tive to act where brand is a core Mothercare and Early Learning for the next generation is at the Called “Born to Care”, the cam- ship of real estate,” says Adrian “Man is now primarily an long term, they are building sus- part of a company’s values and Centre brands, which sell cloth- heart of what we do, so we are paign aims to raise £1.75m to Wyatt, its chief executive. urban species and the battle tainable, more competitive busi- ethos.” ing, homeware and toys through serious in our focus on sustaina- fund the charity’s global child “It is by creating environmen- against climate change will be nesses,” he says “The really FTSE4Good, a socially respon- 115 stores globally. The com- bility,” says Ben Gordon, the survival work and its work to tal and social value that the eco- won or lost in towns and cities,” good performers will see the sible investment index that pany says environmental con- company’s chief executive. end poverty in the UK. nomic value of our assets will he says. fruits of their efforts.”