172 Statement

This statement is made pursuant to section 172 of the Companies Act 2006, in respect of the financial year ending 31 December 2019.

It sets out the steps that Almacantar Group Limited have taken – and are continuing to take to ensure that the Directors have perform their statutory duties and responsibilities to stakeholders, by taking into consideration the interests of stakeholders in their decision-making.

Statement by the directors in performance of their statutory duties in accordance with section 172 Companies Act 2006

The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

‘A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

The Board of Directors of Almacantar Group Limited consider, both individually and together, that they have acted in the way 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 above) in the decisions taken during the year ended 31 December 2019.

We believe our role in creating space for Central London to thrive relates not only to our buildings, but also to the people who live and work there and what and how we contribute to the wider public realm and community.

As part of their induction a Director is briefed on their duties and they can access professional advice on these, either from the Company Secretary or, if they judge it necessary, from an independent advisor. It is important to recognise that in an organisation such as ours, the Directors fulfil their duties partly through a governance framework that delegates day-to-day decision making to employees of the Group.

The following paragraphs summarise how the Directors fulfil their duties:

Risk Management

As we grow, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks that we face, and that we continue to evolve our approach to risk management. Please refer to the ‘Principal risks and uncertainties’ section below for details on how we manage our risk environment.

Principal risks and uncertainties

AGL Section 172 Statement – Principal risks (pdf)

The Board regularly undertakes an in-depth review of the Group’s strategy, including the business plan. Once approved by the Board, the plan and strategy form the basis for financial budgets, resource plans and investment decisions, and also the future strategic direction of the Group. In making decisions concerning the business plan and future strategy, the Board has regard to a variety of matters including the interests of various stakeholders, the consequences of its decisions in the long term and its long-term reputation.

Our People

The Group is committed to be a responsible business. Our behaviour is aligned with the expectations of our people, clients, investors, communities and society as a whole. Our employees are fundamental to the delivery of our business. For our business to succeed we need to manage our people’s performance and develop and bring through talent while ensuring we operate as efficiently as possible. We must also ensure we share common values that inform and guide our behaviour so we achieve our goals in the right way.

We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.

The Group has a well-developed structure through which it engages regularly with the employees to discuss and understand matters concerning employees.

Business Relationships

Our strategy prioritises organic growth, driven by cross-selling to existing customers or agents and bringing new customers into the Group. To do this, we develop and maintain strong customer or agent relationships. We value all of our suppliers and have multi-year contracts with our key suppliers. We also expect our suppliers to comply with good standard and practices, such as those relating to environmental responsibility, modern slavery, data protection, human rights and ethics.

Community and Environment

The Group’s approach is to use our position of strength to create positive change for the people and communities with which we interact. We want to leverage our expertise and enable colleagues to support the communities around us.

The nature of the Group’s business by definition leads to environmental improvements – we improve the performance of buildings by more efficient management / redevelopment. The Group made a decision to undertake the construction of affordable housing to support the critical shortage of affordable housing in the local community, rather than making payment to the council for them to have to co-ordinate the various professionals required to construct the affordable housing.

The Group also undertake a number of charitable and community projects and during the year the Group contributed a total of £78,300 to support these activities. For each of our development projects, we partnered with at least one local charity as the Group is a firm believer of supporting the local community above and beyond the regulations that are imposed on us by each local council / borough.

Shareholders

The Board is committed to openly engaging with our shareholders, as we recognise the importance of a continuing effective dialogue, whether with major institutional investors, private or employee shareholders. It is important to us that shareholders understand our strategy and objectives, so these must be explained clearly, feedback heard and any issues or questions raised properly considered.

The four primary shareholders either have, or have the right to appoint, directors to the Almacantar Group Limited’s Board. The offices of Chairman and CEO are separate in line with the best practices of corporate governance guidelines. Furthermore, the Group has an independent Chairman who is in regular liaison with the shareholders to accomplish the goals set out above.