How we communicate with our stakeholders
Maintaining strong stakeholder relationships is essential to Gamma's long-term success.
The Board of Directors consider, both individually and together, that they have acted in the way that they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, having regard to the stakeholders and matters set out in section 172 (a)-(f) of the Companies Act in the decisions taken during the year.
Shareholders
Shareholders are key beneficiaries in the value that we create. We are committed to transparent and open engagement with them.
Key areas of interest:
- Financial performance
- Dividends
- Share price appreciation
- Strategy
- Business model
- Behaviours towards other stakeholders including in Environmental, Social and Governance areas
How we engage
Our principal means of engaging with our shareholders are through:
- Communications such as trading updates, use of the Regulatory News Service (“RNS”), Annual Reports and notices of general meetings.
- 142 one-to-one meetings with shareholders with the CEO and CFO being available to shareholders or potential shareholders and regularly meeting with them.
- Two Capital Market Days were run, one talking about Gamma’s product suite and one to talk about the European business.
- Attendance at roadshow events organised by the brokers who provide analyst coverage of the Group.
- Information on the investor section of our corporate website: www.gammacommunicationsplc.com.
- Discussions held during the Annual General Meeting (AGM).
What we have done
- Continued strategic investment both organically and through acquisition, bringing new capabilities, new geographies and new market opportunities to the Group.
- Formed the ESG Committee.
- In 2020 we appointed a Senior Independent Director who is available to meet with major shareholders, if such meetings are required.
- Further strengthened internal governance through creation of a Group procurement team and an internal audit function.
- Gamma continues to comply with the Quoted Companies Alliance Corporate Governance Code (QCA Code), this was confirmed by the Board on 3 September 2021.
- Improved disclosure in the Annual Report.
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Our People
Developing and attracting high-quality talent is a key driver of our success. As of 31 December 2021, we have 1,745 employees worldwide.
Key areas of interest:
- Safe working environment
- Development and progression
- Competitive remuneration
- Diversity and inclusion
- Environmental footprint
- Workplace policies
- Collaboration
- Share price
How we engage
- Henrietta Marsh (Independent Non-Executive Director) is the Workforce Engagement Director.
- During 2021 the Gamma Pulse Survey, which was piloted in 2020, was rolled out across the Group. It is conducted on a bi-annual basis and provides valuable insight to senior management. Results are reported to the Board who have the opportunity to shape future surveys to areas of interest.
- Monthly webcasts led by the CEO and other senior management on Company performance and activities of the Group.
- As a result of the pandemic, the large majority of the workforce has worked from home for most of 2021. A Special COVID-19 Taskforce was arranged to provide regular communication to staff.
- New processes were set up to ensure that managers engaged more frequently and to ensure they covered general employee wellbeing.
What we have done
- Invested in our People function, including strengthening the Learning and Development teams.
- Conducted bi-annual reviews of the employee engagement surveys and completed the feedback loop on any actions taken by reporting to employees.
- Supported employees to establish appropriate working conditions with appropriate equipment during the pandemic.
- Including a “people” section in our monthly Board reports which focuses on key people metrics.
- Rolled out a Whistleblowing facility across all Group companies, using external contractors, and reporting in the first instance to two Independent Non-Executive Directors, and communicated its availability to employees who wish to raise concerns.
- Formulated a plan to improve diversity and inclusion.
- Adopted the UN Sustainability Goals as long-term objectives.
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Customers: Channel Partners
Gamma's ethos is to provide a robust product at a fair price. Where we are selling via channel partners, we want our partner to be able to make a fair margin for the value that they are adding to the end user.
Key areas of interest:
- Innovative solutions
- Long-term relationships
- Value
- Service
- Product development
How we engage
- Gamma Channel Partner Programme.
- 24/7 UK-based technical help.
- Each channel partner will have a dedicated Business Development Manager who is responsible for ensuring that they have what they need from Gamma to build their own business. Channel partners also have access to the Senior Management Team.
- Regular in-person or virtual roadshows to showcase new products and to share the development roadmap.
What we have done
- Through the Gamma Channel Partner Programme, we offer a suite of additional training resources – The Gamma Academy. These resources, tools and information are all accessible online. The programme has been designed to help channel partners reach into the marketplace by increasing the knowledge base and partner expertise. It also creates a deeper, more collaborative relationship with Gamma. This programme has also been rolled out in the Netherlands.
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Customers: End Users
To provide reliable, innovative products and services that meet the needs of the end users.
Key areas of interest:
- Product quality
- Product availability
- Produce cost
How we engage
- We assign customer service managers to each account giving a consistent point of contact within Gamma.
- We offer 24/7 support through our support team.
- The support infrastructure is co-located, meaning that end users get through to the right person to handle the query.
- Gamma offers a service scheme to allow customers to choose the level of service required to match the right support in place whatever the end customer needs.
What we have done
- Our UK Direct business unit organises an annual conference for our customers which allows them to stay in touch with the senior team at Gamma as well as to share knowledge with their peers.
- In our UK Direct business we have continued to develop our online sales and support platform in line with our strategic plan.
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Suppliers
Developing strong operational relationships is key to success.
Key areas of interest:
- Social and ethical impact
- Payment practices
- Long-term partnerships to develop innovative products and solutions
How we engage
- We partner with key suppliers to ensure that we have common goals and strategy.
- We ensure responsible procurement, through the Board approved policy.
- Gamma’s supplier payments policy is to always pay suppliers on or before the agreed term (which will vary from contract to contract).
What we have done
- During the year we have built our Group procurement function to ensure best practices are applied across the Group.
- Annual approval of the Modern Slavery Statement by the Board.
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Regulators
We operate within the requirements of a regulated industry.
Key areas of interest:
Ofcom’s duties are set out in the Communications Act 2003.
Its primary duties are:
- To further the interests of citizens in relation to communications matters; and
- To further the interests of consumers in relevant markets, where appropriate, by promoting competition.
How we engage
- Engagement with Ofcom both formally and informally.
- Participation in consultation responses as a Group or as a member of industry bodies.
What we have done
- Defend the Channel – we recognise that many channel partners are SMEs who do not always have the resources to engage with regulatory bodies.
- Give a voice to businesses – regulation is often aimed at protecting the domestic consumer but with unintended consequences when applied to business users.
- Challenge the cost assumptions of implementation – these can be underestimated.
- Ensure that regulation stays current – to help provide adequate protection for end users.
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Communities
We have a duty to conduct business in a responsible way that aligns with our purpose and values.
Key areas of interest:
- Environmental and social impact
- Improving quality of life
- Protecting people
- Diversity and Inclusion
How we engage
- We are committed to supporting the communities in which we are based and are enhancing our charitable giving plan.
What we have done
- Supporting communities via financial donation including a matching scheme for funds raised by employees.
- Supporting through time donated, where employees are given one day a year to help support their chosen charity.
- Formulated a plan to improve diversity and inclusion.
- Formed an ESG committee and improved reporting in this area. In 2021 a Charity forum was set up to add focus to this area.
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The Board considers the matters set out in section 172 of the 2006 Act in all its discussions and decision making. That includes:
The likely consequences of any decision in the long term:
The Directors recognise that the decisions they make today will affect the Group’s long-term success. During the year the Board continued to monitor the Group’s strategy, which is discussed further in our strategy, which shows how the Group will increase value for all our stakeholders. This guides the Board’s decisions between short and long-term investments.
The interests of the Company’s employees:
The Board recognises that Our People are a key differentiator and they are always considered as part of the Board’s discussions and decision making. The Board is committed to the People Agenda, with focus on development and leadership programmes, succession planning as well as effective employee engagement initiatives. The Group has invested in our People function, including strengthening the Learning and Development teams. Regular employee engagement surveys are performed across the whole Group with results and actions being discussed at the Board level. Henrietta Marsh (Independent Non-Executive Director) is the Workforce Engagement Director. The Remuneration Committee takes an active interest in the remuneration of employees at all levels to ensure that the overall reward is equitable.
The need to foster the Company’s business relationships with suppliers, customers and others:
The Board understands the importance of fostering good relationships with its stakeholders. More detail about how it engages with it stakeholders is on pages 26 to 29. The Board does also rely on its subcommittees and senior management to develop relationships and to share the views of the relevant stakeholders. Board members meet with customers as well as monitoring the relationship with key customers via the Executive Directors and the Senior Leadership Team (SLT). The Board additionally actively monitor the relationships with key suppliers through the Executive Directors and the SLT.
The impact of the Company’s operations on the community and the environment:
The Board recognises the importance of its decisions on the community and the environment. The Gamma Board adopted the UN Sustainable Development Goals in January 2020 and since that time Gamma has assessed each goal in depth to understand how the business is best placed to make a meaningful contribution. Through the ESG Committee, the Board also ensures that environmental policies and suitable governance structures are established to align with Gamma’s committed environmental targets. In 2021 the Group appointed a Group Sustainability Director who has responsibility for the Company’s emissions reporting and carbon reduction planning. Gamma has held ‘Certified Carbon Neutral Company’ status (conferred by Natural Capital Partners) since 2006 and has committed to become a carbon net-zero business by 2042.
The desirability of the Company maintaining a reputation for high standards of business conduct:
The Board intends that Gamma be a positive contributor to society as a whole, to the UN Sustainable Development Goals, to its employees, customers, suppliers, shareholders and other stakeholders, and to the environment. To this end Gamma requires that all its employees and Directors: a) comply with the law in each jurisdiction where Gamma operates; b) where specified in a Company policy, meet a higher standard than basic ‘compliance with local law’, and c) maintain high ethical standards whenever representing Gamma or its Group companies. This is set out in the Ethical Conduct policy which is publicly available on the Group’s website. There is a whistleblowing facility across all Group companies, using external contractors, and reporting in the first instance to two Independent Non-Executive Directors, which enables employees to raise concerns if they wish.
The need to act fairly as between members of the Company:
The Board recognises that they have to balance competing interests in reaching its decisions. Where there are conflicting interests, the Board will act as equitably and fairly as it is able to take into account the implication for each stakeholder
Decisions made during the year:
The principal decisions taken by the Board during the year, along with how the Directors considered stakeholder interests when taking into consideration their duties under section 172 of the Companies Act, are set out below.
Dividend
Stakeholders considered:
Shareholders, Our People, customers and suppliers.
Board's decision making process
The Board considers its commitment to a progressive dividend policy which has seen the dividend increase by between 10-15% every year since IPO in 2014. It considers the financial resources required to execute our strategy, including organic investment needs and acquisition opportunities; maintaining a sufficient level of dividend cover and equitable treatment of our stakeholders.
Long-term considerations
Dividends consistent with the Company’s financial performance without detriment to the strength of the balance sheet and future sustainability.
Acquisitions
Stakeholders considered:
Shareholders, operating companies, suppliers, future employees and partners, and professional advisers.
Board's decision making process
The Executive Directors provide information to the Board on potential acquisitions. The Board consider this information taking the Group’s strategy as well as the impact on different shareholders into account. The acquisition of Mission Labs in March 2021 went through this process.
Long-term considerations
The Board consider the long-term benefits of the investment versus the short-term impact on different stakeholders.
Capital allocation
Stakeholders considered:
Shareholders, Our People and customers.
Board's decision making process
The Group’s budget, approved by the Board, sets the allocation of capital to deliver our growth strategy through investment in R&D, capital expenditure, talent and acquisitions. The weighting of each is determined by our strategic priorities over the short to medium term.
Long-term considerations
Balancing investment for future growth whilst supporting Our People and customers in the short term as well as meeting shareholder expectations.
Board Composition – Executives
Stakeholders considered:
Shareholders and Our People.
Board's decision making process
The role of Deputy CEO was established to take on a range of strategic and operational responsibilities to support the development and growth of the Group. This new role was offered to Andrew Belshaw (the incumbent CFO). He will start on 1 May 2022 when the new CFO arrives in post. A new CFO was recruited with emphasis being placed on the diversity of the long list to ensure that candidates of different ethnicities and both genders were considered.
Long-term considerations
The role of Deputy CEO helps supports the strategic growth of the Group in both the short and long term.
Carbon net-zero
Stakeholders considered:
Shareholders, Our People, customers, suppliers and communities.
Board's decision making process
The Board considered the time frame to become net-zero taking into account the investment requirements along with the environmental considerations.
Long-term considerations
Gamma is pleased to announce its commitment to move from a Carbon Neutral business to become a carbon net-zero business by 2042, maintaining carbon neutral status in the interim period to achieving net-zero.