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Section 172 statement - Antalis relationships with stakeholders

 

Antalis Limited – Annual report – 31 December 2019

Industry: Paper and Packaging Merchant

 

 

CORPORATE GOVERNANCE (extract)

Statement of corporate governance (extract)

Section 172 statement

 

This section serves as our section 172 statement. Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of all stakeholders in their decision making. The Directors continue to have regard to the interests of the Company’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Company’s reputation, when making decisions. Acting in good faith and fairly between members, the Directors consider what is most likely to promote the success of the Company for its members in the long term. Whilst the importance of giving due consideration to our stakeholders is not new, we are explaining in more detail this year how Excom (executive commitee)  engages with our stakeholders, thus seeking to comply, a year early, with the requirement to include a statement setting out how our Directors have discharged this duty.

In This Section
CSR Strategy Business Ethics Certification REACH Policy Section 172 Statement

Antalis ESG Report

  • The Directors are fully aware of their responsibilities to promote the success of the Company in accordance with section 172 of the Companies Act 2006.

 

  • The Directors regularly review all principal stakeholders and how we engage with them.

 

  • Table A notes the type of relations the Antalis Limited Directors have with its suppliers.

 

  • Table B notes the type of relations the Antalis Limited Directors have with its shareholders.

 

  • As regards Employee relationship and engagement, the Directors recently implemented twice weekly management briefings with its top 50 leaders to enhance the level of direct interaction especially given the impact of Covid 19. Regularly all staff communications are sent out from the Managing Director and specific update communications, relating to key projects, are sent out by the relevant Director. Team meetings and cascades from Group meetings are also held by each Director. The Excom sits once a month.

 

  • The Directors considers that the existing meetings with JWP (Joint Working Party), NNC (National Negotiating Committee), ICE (Information, Consultation and Exchange), etc work well and are attended by the appropriate directors including the Supply Chain Director, HR Director and Managing Director.

 

  • The Directors continue to work responsibly with Antalis’ suppliers.  It employs a segmented approach across a wide portfolio of businesses:
    • Working with central teams that cover Strategic Paper and Packaging suppliers as well direct engagement with local representatives that primarily interact with the UK&I Commercial teams
    • Direct Engagement with local Trade Suppliers through the Commercial Directors and purchasing management
    • Direct Engagement with local non-trade suppliers through the Finance Director

 

  • The Directors continuously review the outsourcing position in order to build greater cost flexibility. During the year the Directors agreed an extension to an existing relationship concerning the outsourcing partnership to run parts of Antalis’ warehousing and distribution operations.

 

  • With the changing market for Paper supply in the UK and Ireland, the Directors took a decision to consolidate its operations within its two East Midlands based Central Distribution Centres with the aim of reducing cost, reducing working capital and strengthening customer service.

 

  • The company operates four defined benefit pension schemes as well as a defined contribution scheme. The company embarked on an exercise to consult with its strategic and legal advisers as well as the DB Scheme lead Trustees to see whether Scheme expenses, contributions and assets could be more effectively utilised to drive more value for the Pension scheme members. A plan to bring the four schemes closer together through the formation of a Trustee Company and consolidation of external advisers was agreed. The company also wanted to foster closer working between the three main stakeholders (Trustees, Company, Advisers). More information has been shared and a clearer understanding of the challenges has resulted in a beneficial outcome.

 

  • The Covid – 19 virus has caused serious disruption to businesses and the economy. The Directors therefore needed to balance trading activity with resource costs, regrettably this has resulted in job losses.

 

  • The Company’s IT strategy is regularly reviewed by the Directors, balancing out the need for in-house IT teams and specialist support to maintain its various ERP and other systems.

 

  • Brexit is being managed through a dedicated Antalis Project team that adopts an approach governed by sound project management disciplines and through qualified employee practitioners. The team is lead by the Finance Director and regularly engages with all the Directors. The project team is supported by use of external consultants, distribution agents and Antalis colleagues. AEO status has already been gained in conjunction with HMRC auditors.

 

  • The packaging and Visual Communications markets represent significant growth opportunities. The Directors see that continued investment and development will present opportunities for numerous stakeholders.

 

  • The well-being of all Stakeholders is of paramount concern to the Directors. The Covid-19 pandemic has brought this even more to the forefront of the Director’s thinking and action planning.

Table A – Supplier relationships

Trade

The Directors value the close relationship it has with its Trade suppliers. The more strategic suppliers’ relationship is managed mainly by colleagues in group procurement but also locally with the UK Commercial Team. Regular discussions occur on Forecasts, Pricing, Terms, Developments and Operational matters.

Local suppliers are managed by the UK team and cover the above areas.
Non-Trade Non-trade suppliers are managed locally except for where Group policies are driving scale benefits. Relationships are mainly maintained at Director level and through local purchasing. Antalis values these relationships and has close dialogue with suppliers around the business.

 

Table B – Shareholder relationship

KPP Very close working relationship is held by colleagues at Group and at Group Board level. It is envisaged that more local Director relationships will develop following the acquisition and the new Group Board representation from KPP colleagues.
Public Antalis is a quoted company on the French Stock Exchange. Formal relations are well maintained in line with legislative requirements. Independent analysis of the KPP offer price was also obtained to ensure that a fair offer was being made.

 

Table C – Other relationships

Pension Fund In 2019, the Board and Group CFO and CEO have asked the UK&I Finance Director to lead on a full review of Antalis Limited’s defined benefit pension schemes. This has progressed very well by engaging all the Trustee stakeholders. 
Community Relations Antalis' Directors are very conscious of its relationship with the community that surrounds its national portfolio of sites. This community relationship was further strengthened during the pandemic when Antalis’ packaging division provided bespoke packaging to foodbanks and PPE to health workers.