and expand their network include offering better value, extending their range and availability, along with format renewal, modernising branches and creating national networks in a number of the Group’s businesses. Furthermore they recognise the need to modernise the branch network with plans underway to develop a new branch format, ‘TP 2018’, alongside further development of their multi-channel proposition.

They also plan to use the Group’s scale to improve efficiency and deliver a better customer proposition within their smaller businesses. They offer small businesses the opportunity to access properties they would otherwise find it difficult to occupy, or the option to co-locate with their larger businesses and benefit from greater foot traffic at their multi-fascia sites. They are also focused on using their buying scale to source products directly from manufacturers at lower cost and to consolidate product ranges, thus reducing costs further and offering better value to customers.

Finally, their revised approach to managing their portfolio of businesses has ensured a more robust planning approach, enabling us to allocate capital to the opportunities which are expected to deliver the most material value for shareholders. Capital expenditure is expected to increase in the medium term to take advantage of development opportunities in the market and will be tiered based upon the risk and return profiles of the various investment opportunities identified.