Mcbride Plc Annual Report and Accounts 2010 What’S Inside
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McBride plc Annual report and accounts 2010 What’s inside We are Europe’s leading provider of Private Label Household and Personal Care products. We develop, produce and sell our products to leading retailers primarily in the UK and across Continental 02 Passionate about Europe. We manage the business through Private Label three divisions – UK, Western Continental Europe and Eastern Continental Europe – with sales in all major European markets and many beyond. See also pages 03 to 09 and 28 to 29. 18 24 What the Expanding new CEO in Asia has to say 10 Overview of the year 16 Business review This section provides a summary of who we are and what we do. This section gives details of our business performance in the It includes highlights of our financial and operating performance 2010 financial year. We also provide other important financial in the 2010 financial year. information about the Group. Performance highlights 10 Chairman’s statement 16 Our geographic footprint 12 Chief Executive’s review 20 Industry review 14 Case studies 24 Divisional performance 34 Group financial review 40 Principal risks and uncertainties 44 Resources and relationships 47 Company name: McBride plc Registered number: 2798634 Key performance indicator UK organic 10 14 Passionate about Private Label revenue growth performance trends and performance Label Private about Passionate +2% See also pages 11, 23 and 55 32 50 year the of Overview Bringing new Corporate social products to market responsibility Business review Business 48 Our governance 77 The figures Find out who McBride’s Directors are and how we apply our This section contains all the detailed financial statements values to the way we run our business in terms of corporate and other information shareholders find useful. As well as governance, accountability and corporate social responsibility. the statutory accounts, this section contains other useful The remuneration section explains our pay policies and contains information for shareholders, a financial calendar for the details of the salaries and benefits received by the Directors forthcoming financial year and a summary of financial governance Our during the year. performance over five years. Board of Directors 48 Financial statements Group Management Team 49 Independent Auditors’ report 77 Corporate social responsibility (CSR) report 50 Group financial statements 78 Corporate governance report 56 Notes to the Group financial statements 82 Audit Committee report 62 Company financial statements 110 Nomination Committee report 64 Notes to the Company financial statements 111 Statutory information 65 Remuneration report 70 Shareholder information Useful information for shareholders 114 Definitions and glossary of terms 117 Our online resource 120 figures The 01 McBride plc Annual report and accounts 2010 Passionate about Private Label McBride aspires to the highest levels of performance for all our stakeholders. We believe that Private Label has an important role to play in the economy, providing consumers with products of exceptional value and performance as well as providing our retail customers with the opportunity to differentiate themselves with their own unique range of Household and Personal Care products. In short, we are ‘Passionate about Private Label’. Our Mission and Vision are underpinned by a set of Principles which commit us to focus on our customers’ needs, to engage our people fully and to drive for improved performance at all times. We are proud of our corporate and social responsibility and the way we do business. 02 McBride plc Annual report and accounts 2010 Passionate about Private Label TheT internal campaign GGreta Vanderjeugt is driving our MMission, Vision and Principles eengagement programme across tthe Group and making a big imimpact in her customised car. Passionate about Private Label Private about Passionate Overview of the year the of Overview To be the leading provider of To be the most successful Private Engage our people Household and Personal Care Label company in the world by: > succeed through teamwork products of exceptional value and > becoming recognised as the > always promote effective performance to our customers supplier of choice to all retailers two-way communications and their consumers. in our markets > create an open environment > doubling our size and profitability where challenge is welcomed and contributions recognised > encourage individual development Focus on our customers > deliver on our promises review Business > build positive relationships > protect and develop our customers’ brands Drive our performance > think everything can and should be improved > focus on adding value, reducing cost, and increasing profits > act with speed, agility, and Our governance confidence The figures The 03 McBride plc Annual report and accounts 2010 Passionate about Private Label Passionate about Private Label Continued Household With 13 factories across Europe, producing liquids, powders, tablets, gels, aerosols and sachets, we provide a comprehensive range of Private Label Household products to retail customers. Personal Care McBride is a leading provider of Private Label toiletry products. The recent acquisition of Dermacol a.s. has not only extended To be the leading provider our offer to Skincare but also provides a dedicated Personal Care manufacturing of Household and Personal facility in Eastern Europe. Care products of exceptional value and performance to our customers and their consumers. 04 McBride plc Annual report and accounts 2010 Passionate about Private Label To be the most successful Private Label company in the world by: > becoming recognised as the supplier of choice to all retailers in our markets > doubling our size and profitability Passionate about Private Label Private about Passionate No.1 Five-year trend in capital investment One Family, one World, one McBride, these are the key themes of the engagement message within our Mission, Vision and Principles 30 initiative. Through teamwork and a common goal, McBride aims to retain its position as the number one Private Label supplier. £26.5m 25 £24.3m 20 £20.0m £20.0m £17.3m year the of Overview 15 10 5 0 2006 2007 2008 2009 2010 Business review Business In the last five years McBride plc has invested £108 million in building a sustainable competitive manufacturing platform. Investments include automation, new product development, capacity expansion, health, safety and environmental improvements and essential replacement. Five years of continued investment in expanding our manufacturing and governance Our new product development capability £108m The figures The 05 McBride plc Annual report and accounts 2010 Passionate about Private Label Passionate about Private Label Continued Engage our people > succeed through teamwork > always promote effective two-way communications > create an open environment where challenge is welcomed and contributions recognised > encourage individual development Carole Craggs McBride Filling Supervisor (left) Carole has worked at McBride’s for 27 years. Carole’s role is to ensure that all production runs to specification and line efficiency is maintained to meet customer service. She participates in the Involvement of People, Best Value Products, Continuous Improvement and Health and Safety initiatives. Debra Lunt McBride QA Assistant (right) Debra has worked at McBride’s for 28 years. Debra works as a member of the Technical Department, performing checks on products as and when required. Debra also looks after Customer Service and both the Involvement of People and Best Value Products initiatives. 06 McBride plc Annual report and accounts 2010 Passionate about Private Label Peter Butterworth McBride Warehouse Operative (below) Peter has worked at McBride’s for 15 years. Peter works as part of the warehouse team to achieve 100% customer service internally and externally. He has been involved in project work and improvement teams in the warehouse. Working on the 5’s principles and visual standards in the warehouse, Peter was also a previous winner of Employee of the Year for his space-saving ideas in the warehouse. Passionate about Private Label Private about Passionate Overview of the year the of Overview Business review Business Aurangzeb Khan McBride Team Leader (above) Our governance Aurangzeb has worked at McBride’s for five years. Aurangzeb’s role is to lead the Manufacturing Department team with the objective of ensuring production runs to the specification, line efficiency is maintained and safety standards are met. The figures The 07 McBride plc Annual report and accounts 2010 Passionate about Private Label Passionate about Private Label Continued Focus on our customers > deliver on our promises > build positive relationships > protect and develop our customers’ brands Delivering value across Europe Our European manufacturing footprint means we are uniquely positioned to supply Europe’s / leading multinational retail chains. 10 10 We supply all of the top 10 retailers in Western Europe In fact, we supply all of the top 10 In addition to counting the top 10 grocery retailers in Western Europe as our customers, we supply most of the Western European Grocery leading national chains throughout Europe retailers, and in Eastern Europe, McBride supplies 8 of the top 10 % market share of Eastern European Grocery chains. Ranking and Company West European Grocery market 1 Carrefour 5.9% 2. Metro Group 4.2% 3. Tesco 4.0% 4 Schwarz Group 3.8% 5. REWE Group 3.8% 6 Edeka 3.4% 7. Aldi 3.2% 8. Auchan 3.1% 9. 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