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eport 20 14
n 99 004 400 891
Operating and Financial Review 01 Financial Performance Review 02 Corporate social Responsibility 08 Risk Review 10 outlook 11 summary of operations 12
Directors' Report 14
Corporate Governance 16
Remuneration Report (Audited) 24
Board of Directors 38 executives 39
Financial Statements 41
Additional shareholder information 85 shareholder services and information 86 Financial summary and Ratios 87
Corporate Directory 88 Financial Calendar 2014/15 iBC
GUD HOLDINGS ANNUAL REPORT 2014 | 01
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Overview The 2013/14 financial year has been one of transition for GUD and its operating businesses. Fundamental changes have been activated across all business units and have spanned all facets of activity, including strategic and operational.
The effect of these changes is not yet fully evident in the Group's financial performance, although there has been a contribution from some initiatives in the reporting year. It is expected that the planned impacts from the various initiatives, which will be described later in this Review, will be apparent in profitability uplifts in 2014/15 and subsequent years.
The continued competitive environments in which each GUD business operates have brought about a major rethink in the way GUD operates and how the business should be structured to meet current trading conditions and those anticipated in the future. For example, each business needs to have a dynamic and embedded innovation program aimed at delivering breakthrough products and services to customers and consumers. This will ensure growing revenue streams in the future and provide an ability to command higher gross profit margins over time.
Equally, there needs to be a more operationally coordinated approach to logistics and supply chain functions to reduce costs and to ensure that each GUD business maintains a low cost-to-serve business approach. A number of actions targeted at this area of cost were implemented in the current year and are detailed later in this Review.
To drive these changes in three of GUD's major businesses new CEO appointments were made during the year. These occurred at Dexion, Sunbeam and Davey and followed Jonathan Ling's commencement as GUD's CEO in August 2013.
Three major Group-wide change programs were launched in the 2013/14 year. These were initiated with the objective of providing each business with a set of tools and capabilities necessary for long-term competitive success. They include: 1. Detailed profitability analysis by customer and by
product at most businesses. This provides a more complete understanding of which products and customers are profitable or unprofitable than that offered by traditional accounting tools. It provides businesses with the analytical basis from which to address...