Speirs Group Limited

Purpose, Goals and Strategy

Purpose

Speirs Group is an investment company focused on the food sector and aims to maximise returns to its investors and enhance the well-being of all its stakeholders.


Goals

  • Investment returns over the medium term will exceed the average NZX50 return as measured by capital growth and dividends to shareholders.
  • A range of investments will be held to ensure the Group is able to diversify risk.
  • The Group Board will have appropriate governance input to investments commensurate with the size and percentage of the investment holding.
  • Full or partial divestment of investments may be undertaken when the value that can be realised is greater than assessed value of retaining the investment or to lower the risk profile of the portfolio.
  • The ratio of debt to debt plus equity increase to at least 50% in the next 3-5 years and then be maintained at no less than 50%.
  • Corporate office costs will be kept to a minimum.


Summary of Present Investments

Investment

Holding

Type

Description

Speirs Foods (2018) LP

67%

Food - Active

Fresh food production




Investment Criteria

Criteria to be considered for any investment are:

1. The investment is aligned with the core competencies of Speirs Group - food manufacture, marketing and distribution; or finance.

2. The investment has synergy with an existing investment that provides potential to increase sales, reduce costs and improve the profitability of the new and existing businesses.

3. Acceptable shareholder agreements are in place to ensure that SGL has appropriate governance input to investments commensurate with the size and percentage of the investment holding

4. The investment will within the short to medium term provide sufficient free cash to SGL to cover annual investment costs.

5. The amount of capital required is affordable for SGL and would not materially increase the financial risk to the business.


Summary of Strategy For Investment


Investment

Investment Strategy

Speirs Foods (2018) LP

The present intention is to hold this investment to provide profitability and cash flow to the wider group.

Speirs Foods (2018) LP strategy is to:

  • Maintain the strong national position the Company has in the fresh salads market;
  • Grow sales by developing and marketing new products that are aligned with the business's core competencies;
  • Improve the efficiency of production and distribution with targeted capital investment and continual improvement of processes and practices;
  • Maintain the highest levels of food safety and employee health and safety.

A further partial or full divestment of this investment would be considered if a proposal provided a better outcome for shareholders.

© Speirs Group Limited. All rights reserved.

MoST Content Management V3.0.8886