THE CONVENIENCE SHOP (HOLDING) PLCAnnual Report and Consolidated Financial Statements - 31 December 2023
DIRECTORS’ REPORT - continuedOutlook for 2024 and events subsequent to the financial reporting date
Going into 2024, The Convenience Shop Group remains committed to redefining convenience and delivering an exceptional shopping experience to its valued customers. The Group’s strategic vision is firmly aligned with the goal of becoming the retailer of choice in the local convenience sector, driven by a relentless pursuit of innovation, customer-centricity, and operational excellence.
Customer satisfaction is at the core of its endeavours, and the Group will continue to invest in improving category management and expanding its product offerings to cater to the evolving needs and preferences of its customers. By introducing new categories and curating a diverse range of products, the Group will solidify its position as a one-stop-shop for daily essentials, providing convenience and value to its patrons.
In 2024, the Group will implement a new HR system, consolidating a single platform to manage employee data, streamline hiring and onboarding processes, and enhance overall employee experience and performance.
By the second quarter of 2024, The Group will unveil its new flagship head office in Qormi, spanning over 1,350 square meters. This state-of-the-art facility will house modern office spaces, a retail outlet, a family-friendly food court, and a cafeteria, reflecting its commitment to providing an exceptional experience for its employees, customers, and the community.
As the Group continues to expand its retail footprint, it is dedicated to serving as the leading daily shopping destination, offering a comprehensive range of fast-moving consumer goods, fresh produce, baked goods, meat, dairy products, and more. Its commitment to quality, affordability, and convenience will remain unwavering as it strives to meet the evolving needs of its customers.
Innovation and sustainability will be at the forefront of The Convenience Shop’s endeavours. The company will actively explore and implement cutting-edge technologies, digital solutions, and sustainable practices to enhance the shopping experience and minimise its environmental impact. By embracing innovation and adopting eco-friendly initiatives, the company aims to future-proof its operations and contribute to a more sustainable future.
The Board of Directors together with management constantly monitors the rapidly shifting macroeconomic and geo-political environment. The speed of change in terms of emerging challenges means that agility of response is critical to ensure that the business is protected and continues to grow and develop. The Group will continue to manage its operations and finances in a diligent manner so as to be able to generate sustainable levels of turnover and profitability in the years to come.
Looking ahead, The Convenience Shop Group is poised to reach new heights of success, driven by its unwavering dedication to excellence, customer-centricity, and a relentless pursuit of growth and innovation.
Financial risk management
The Group and the Parent Company are exposed to a variety of financial risks, including market risk, credit risk and liquidity risk, as disclosed in Note 29 to the financial statements.
Dividend Policy and Dividend Distribution
The statements of comprehensive income and statements of financial position are set out on pages 26 to 28. As at 31 December 2023, the Company’s retained earnings amounted to €1,255,522 (2022: €1,016,602) while the Group’s retained earnings amounted to €3,341,208 (2022: €2,190,175).
As noted in the IPO registration document, the Company’s Board of Directors have implemented a policy to recommend a dividend distribution of 55% of the recurring free cash flow on an annual basis, subject to statutory requirements and availability of profits for distribution.