Right Topco Limited

Key performance indicators Key Performance Indicators are used to monitor performance of all aspects of the business. The directors consider Turnover, EBITDA and Gross Margin percentage as the key measures of the organisation's performance: 2022 2021 Change £'000 £'000 % Turnover 17,890 17,347 +3.1 EBITDA 2,616 2,177 +20.2 Gross Margin percentage 53.5% 52.4% +1.1 Principal risks and uncertainties The Group is subject to various risks and uncertainties during the ordinary course of its business many of which result from factors outside of its control. The Group's risk management framework provides reasonable (but cannot provide absolute) assurance that significant risks are identified and addressed. An active risk management process identifies, assesses, mitigates and reports on strategic, financial, operational and compliance risk. The principal themes of risk for the Group are: - Strategic: changes in economic and market conditions such as contract pricing and competition. - Financial: significant failures in internal systems of control and lack of corporate stability. - Operational: including recruitment and retention of staff, maintenance of reputation and strong supplier and customer relationships, operational IT risk, and failures in information security controls. - Compliance: non-compliance with laws and regulations. The Group must comply with an extensive range of requirements that govern its business. To mitigate the effect of these risks and uncertainties, the Group adopts a number of systems and procedures, including: - Regularly reviewing trading conditions to be able to respond quickly to changes in market conditions. - Applying procedures and controls to manage compliance, financial and operational risks, including adhering to an internal control framework. Conflict in Ukraine The directors have considered the impact of the events in Ukraine with particular reference to how this may disrupt their business model, strategy and operations. It is noted that the Group has no dealings with either Ukraine or any nation or individual currently experiencing sanctions as a result of the events in Ukraine. The directors have liaised with suppliers and customers and similarly they have no dealings that will impact the Group's supply chain, recoverability of debt and credit. It is clear that there is a worldwide impact on the cost of particular goods, to include fuel, which in turn has increased the base costs of consumables in the business. The directors have calculated the effect and believe that this will not significantly impact the ability to trade or going concern. Future Plans The Group believes it is well positioned to supply and support existing and new customers with a growing portfolio of digital technologies enabling them to effectively outsource the management and provision of these non-core activities to us as a trusted partner delivering best of breed solutions across Managed Print, Managed IT, Workplace communications and Data. The ongoing significant investment into our professional services division continued in year and this fast-growing part of our business has resulted in several new nationwide Managed Technology customer wins. During the year, the Group has continued to develop tailored servicing arrangements to enhance customer productivity, lowering both cost base and environmental impact. These evolving services will help ensure we maintain and grow our key customer long-term relationships and are well positioned to capture future growth opportunities within them as well as winning new customers. Environmental, social and governance (ESG) We are committed to conducting our business operations responsibly and sustainably. We recognise the importance of Environmental, Social, and Governance factors (detailed below) in achieving long-term value for our stakeholders, and we strive to integrate these principles into our decision-making processes and practices. 1. Environmental Responsibility: We are dedicated to minimising our environmental impact and promoting sustainability. We aim to reduce our carbon footprint by implementing energy-efficient measures, optimising resource usage, and investing in renewable energy sources. Additionally, we actively manage our waste generation, promote recycling initiatives, and seek to minimise pollution in our operations. RTC has maintained and invested in achieving the ISO 14001 standard and has set objectives to manage and reduce our carbon footprint; - Vehicles - All company vehicles are hybrid or fully electric. - Fuel - In 2022 our service team invested in advanced scheduling tools and pre-emptive fault diagnosis to significantly improve the routing of engineers which resulted in a reduction in net fuel consumption of 23%. - Through upgrades to heating and lighting systems and awareness with employees, we have achieved a year-on-year reduction in CO2 of 28% at our main Birmingham logistics and service centre. - Product packaging - working with key suppliers the team has reduced non-recyclable waste by 32% with a target in 2023 for a further reduction of 24%. - We have already provided for the carbon offsetting of over 5 million sheets of paper for internal use and several customers. - We continue to choose suppliers who commit to net neutral manufacturing by 2030. - With our commitment to offering sustainable and economically feasible solutions for IT product utilisation in the workplace, bolstered by three decades of technical expertise and extensive financial knowledge, we deliver cutting-edge technology to all our customers through our asset refresh model. A key aspect of our model is ensuring that discarded devices undergo thorough data erasure and are repurposed instead of being needlessly destroyed, thereby mitigating the substantial environmental harm associated with such practices. 2. Social Impact: Social Engagement: We prioritize the well-being and development of our employees, customers, and the communities in which we operate. We maintain a safe and inclusive working environment, fostering diversity, equal opportunities, and respect for human rights. We are committed to supporting local communities through initiatives that enhance education, healthcare, and social welfare. - We are accredited to the Real Living Wage as a minimum and support all our divisional teams with benefits such as the Employee Assistance Program, mental health awareness, and 360 feedback sessions. - We also continue to invest in our employees' further education and training along with the national apprenticeship scheme, covering finance, project management and technical, focusing on Azure infrastructure training. - During 2022 we further developed our Diversity and Inclusion policy to ensure we are aligned with the needs and expectations of all our team members. - Encouraging employees to work together on events raising funds for both national and local charities. - During 2022 we introduction of a new operational board to ensure all teams were represented at a leadership level and consistency in communication across the teams. 3. Good Governance: We uphold the highest standards of corporate governance, transparency, and ethical behaviour. Our board of directors provides effective oversight and guidance to ensure accountability, integrity, and responsible decision-making. We promote a culture of integrity, fairness, and respect, both within our organisation and in our interactions with suppliers, partners, and stakeholders. RTC provides internal and external resource to ensure our polices and working practices are in line with best practice. All teams feed into monthly KPI's set, reviewed by the management team and our external stakeholders, including LRQA (Lloyds Register) who monitor all our ISO standards. Quarterly customer reviews utilising Right Insight a powerful business tool providing granular information on service and performance KPI's as well as product and services utilisation. 4. Stakeholder Engagement: We value our relationships with our stakeholders, including shareholders, customers, suppliers, and regulatory bodies. We engage in transparent and open communication, actively seeking feedback and incorporating it into our decision-making processes. We strive to maintain strong governance practices, ensuring accountability, ethical conduct, and compliance with relevant laws and regulations. We have introduced a continuous feedback process for service, measuring the Net Promoter Score (NPS) of all aspects of delivery and preventive maintenance, and continue to present industry-leading scores. During 2022 we increased the number of shareholders and share option holders to a total of 11 and plan to develop and broaden this further in coming years. We view our suppliers as key partners in the end-to-end provision of product and services, our management teams meeting monthly and board members quarterly to ensure all parties continue to provide exceptional service and are aligned strategically with the ethos of the Group. 5. Reporting and Disclosure: We are committed to transparently reporting our ESG performance and progress. We regularly monitor and measure our ESG initiatives, setting clear targets and striving for continuous improvement, fully documenting our goals through ISO standards 9001/ 14001 and 27001. We are supporters of the Better Business Act in bringing section 172 Companies Act 2006 to all UK businesses and we will continue to develop our reporting alongside nationally recognised frameworks and guidelines, to ensure the accuracy, reliability, and comparability of our disclosures. By embracing these ESG principles, we aim to create long-term value for our shareholders, employees, customers, and society at large. Our commitment to sustainability and responsible business practices is an integral part of our strategy, and we continuously seek to evolve and innovate to meet the challenges and opportunities of a changing world. Employees We are committed to achieving the real living wage as a minimum and support all our divisional teams with benefits such as, the Employee Assistance Program, mental health awareness and 360 feedback sessions. We also continue to invest in our employees' further education and training along with the national apprenticeship scheme.