Section S172 Statement - Engineering
Section 172(1) Statement
The Directors are fully aware of their responsibilities to promote the success of the Group in accordance with Section 172 of the Companies Act 2006 and welcome the reporting requirement in relation to Section 172.
Promoting the success of the Company for the benefit of its shareholders is of the upmost importance to the board.
Further details on how the Directors’ duties are discharged and the oversight of these duties are included below.
The board makes decisions in respect of its operations considering the impact of the Group’s operations on the community and environment and the need to maintain high standards of business conduct. In taking decisions the board also considers the impact on its supply chain, which is key to the continued success of the business, across all sectors. In advance of making any decision, Directors are presented with papers and any relevant updates in relation to the Group’s strategic priorities. The board’s priority in making strategic decisions is about what it considers to be in the long-term success of the Group, from both a financial and safety perspective, as safety remains the overriding priority. The board uses information from stakeholder engagement, including employees and suppliers, together with community and environment factors to make these strategic decisions.
The feedback from stakeholders, particularly customers, supply chain partners and employees is paramount to the board when making decisions. The board also regularly reviews the Group’s safety performance to ensure that the zero harm ambition is met. This commitment means making sure that our workplaces are safe and healthy for everyone, including our employees and anyone working on our behalf.
Our commitment to our clients and customers
In 2021, we continued to focus on delivering for our client partnerships. We are investing in the relationships we enjoy with a wide range of public and private sector partners, while creating new partnerships and broadening our reach.
We recognise the importance of delivering for our customers and positioning for repeat business and new work; accordingly, we work to ‘Succeed by delivering a better experience’, across the business. Our priority over the past two years has been to get closer to our markets, improve our services to existing clients and better understand their requirements, and strive for operational excellence. This has been reflected in the successful delivery of projects including a further 2 major Retail Fulfilment Centres in Swindon and Redditch, and the Staffordshire University – Catalyst Building during the year.
Management at all levels continue to work to develop, maintain and strengthen relationships with new and existing customers by delivering high levels of customer satisfaction and value.
Our commitment to our suppliers and partners
As a purpose-led, responsible organisation, Imtech Engineering Services Ltd exists to create better outcomes for all stakeholders, including our suppliers and partners, with whom we seek to build lasting relationships, treating them fairly, while encouraging them to deliver.
The annual supplier event was held in Autumn 2021. The event allows Imtech Engineering Services Ltd to communicate the progress and strategy of the business with all invited to the event. It also provides an opportunity to the supply chain and partners to have open dialogue with senior member of our leadership team. We continue to have a very strong relationship with our suppliers and partners and are always seeking new opportunities to further strengthen the existing relationship.
Our commitment to our people
Imtech Engineering Services Ltd is a people-focused business and our leadership team is committed to putting our colleagues at the very centre of how we operate. As a services business, we are only as good as our ability to delight our clients and their customers; that is what drives everything we do in terms of commitment to, and investment in, our own people.
In 2021, we did much to improve the experience of working at Imtech Engineering Services Ltd. We ensure that all vacancies at all levels are initially advertised internally.
Having a diverse workforce at all levels will ensure better performance and better decision making – for our business and for our shareholders. Imtech believes that employing a diverse mix of people makes us a stronger and more sustainable business, and one that reflects the society around us. We value and encourage diversity of thought, perspective and experience in all respects.
In order to deliver the growth and value we have strengthened our capability for leadership development, and we are investing in long term plans for skills development. A coherent framework for Learning and Development is available for all levels of employees across the Imtech Group, which leverages the resources and opportunities provided by EDF, and which delivers:
- A robust and validated model of talent identification and supporting management processes which is
consistently applied across the Group;
- A defined and well-understood framework for the provision of coaching and mentoring for those employees where it is appropriate;
- Consistent and effective induction processes across the Group delivering an inspiring first experience for new employees; and,
- Effective performance management and development discussions for all employees.
We also recruit young people as apprentices and graduates across our business. In 2021 Imtech Engineering Services Ltd took on 20 apprentices and trainees. In addition there were a number of employees that were currently employed by the company who transferred to these schemes during the year. Engaging with and listening to our employees is a priority. We communicate with staff regularly through team meetings, learning sessions, briefings and our intranet. We also use the results of the EDF Group Employee Engagement Survey to address areas of concern raised by employees. The results of this Survey are discussed at Board level and are used to support the setting of company strategy and define individual business unit objectives.
Imtech UK Management engages with employees through formal and informal channels, including emails from the CEO, the business MDs, team meetings, webinars, training sessions and via our intranet. Our intranet is an e-platform for sharing company newsletters, announcements and accessing a wide variety of materials, i.e. company policies, information on well-being and company benefits etc.
Our commitment to society
Imtech Group employs over 2,600 people within the UK and Ireland, and we are acutely mindful of the
responsibility we have to support individuals and the communities we serve – and be a force for good in society.
We aim to help restore the connection between companies and a public that has grown increasingly mistrustful of big business. As we drive to be a truly responsible business, we have supported both local and national charities. In 2021, we continued to make several changes to the way we work to minimise our negative impact on the environment. We focused on investing in energy efficiency – upgrading heating, lighting and air-conditioning systems across the business – and on reducing our non-essential travel. We consider that we have a role to play in sustainability and in enabling the UK’s transition to a low-carbon future.
Looking forward our order position is in line with expectations and we have a significant pipeline of opportunities. Underpinning our plans is a continued commitment to excellence, building on our reputation for quality and first class delivery performance, enabling us to deliver customer satisfaction and growth.
Controls are in place to enhance processes together with additional investment in business development to secure profitable work in a very competitive market.
Principal risks and uncertainties
The management of the business and the execution of the company’s strategy are subject to a number of risks:
The key business and commercial risks and uncertainties affecting the company are considered to relate to the delivery of complex new build projects within time, budget and competition from established companies and companies seeking to enter the market from an adjacent or complementary market.
Short and medium term business and commercial risks are reviewed on a monthly basis as part of normal business procedures to identify, understand and plan, implement and measure mitigation strategies to ensure minimal impact to the business.
The company is exposed to price risk in respect of movements in the cost of its raw materials. Internal procurement teams and project teams work hard to ensure that we receive the best price for goods and materials, agreeing prices with suppliers early in the production process to reduce our exposure and achieve forecast targets. Mitigation of price fluctuations is also offset in the subcontract model.
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. Payment application terms are tailored by contract accordingly and management work closely to ensure that progress billings on contracts are made in a timely manner to appropriately limit our exposure. Where management believe exposure exists in relation to retention balances, negotiations are made to release retentions early and replaced with a bond.
Interest rate cash flow risk
The only interest bearing liabilities of the business relate to group loans. Therefore management of cash flows is taken into account as part of the group’s financing activities.
Financial risk management
Short and medium term liquidity requirements are reviewed on a weekly basis to identify and understand the financing and working capital requirements of the business. Review of these forecasts by management enables the business to adequately identify and respond to issues arising in respect of financial risk.