W360: Could you elaborate on the refinancing process from last October and its significance for the company’s future?
AG: Secure, sensible banking facilities are one of the basics for any business, so it is excellent news that we have this nailed down. With our financial metrics trending positively, a lot of folks were interested in having a slice of the cake.
The process ultimately culminated in a new three-year deal with Leumi ABL and Close Brothers. Leumi was part of the syndicate for the last cycle and if you know me, you know I value loyalty and working with people I can rely on. The Breal guys did exactly what they said they would do, but the pricing differential was just too big.
The new mix of funding with an £80 million invoice finance facility and a £10 million term loan was precisely what we wanted. There are a number of improvements in the base terms and it helps that these new facilities will reduce our interest costs by c£2 million a year, other things being equal. So, a really good result.
In tandem, our primary shareholder, Endless, recommitted to the business by increasing our revolving credit facility, waiving accrued interest on its legacy instruments and resetting the life of the fund that holds the investment in evo. This was a major statement of support from Endless, in terms of both money and time.
W360: Moving on to sustainability, what role do you envision for evo?
AG: We have a responsibility across all our businesses to lead the way on this one. There are many aspects to focus on, but we are prioritising the supply chain, the environment, people and community. The supply chain has a huge impact, and under the guidance of Simon [McLoughlin, Group Buying Director], we work continuously with our suppliers to ensure a compliant and robust source of goods for our customers.
Last year, we upgraded our practices in labour, human rights and ethics and updated our supply chain map for risk evaluation. Our most recent Modern Slavery Assessment scoring increased to 91% (from 89% last year) as a result. We work closely with our suppliers to expand our portfolio annually and will persist on this trajectory.
Environmentally speaking, our carbon footprint is significant from our operations, deliveries and procurement. We’re working on removing carbon through measures such as purchasing green energy, installing electric vehicle (EV) charging points across our locations and expanding our EV delivery fleet.
W360: I imagine Banner’s major clients are driving some of that.
AG: Yes, this is a key topic, but price is still important. We also see a shift towards sustainable procurement across our other channels, including VOW, Complete and Premier Vanguard.
We are guided by stakeholders, legislation, sustainability platforms and, of course, our own desire to innovate, improve and do the right thing for the environment and communities in which we operate. Each year, our CSR steering committee uses the feedback from our EcoVadis and Sedex sustainability ratings to help shape improvements within the various departments and across the business as a whole.
In tenders, we are challenged to evidence our credentials as a good corporate citizen, which plays into what we’re doing with the evo Foundation. Through this, we can raise money for good causes while employees enjoy charitable activities. It’s a win-win at every level.
W360: I was going to ask you about the evo Foundation. Are there other industry charities closer to the group you could have supported rather than starting something from scratch?
AG: I get that thinking; but respectfully, I believe that approach would be a touch lazy on our part and I think we can do better. We will continue to support the BOSS Federation, of course, but we can do more, and I’m learning from EWS, my previous employer, and the Commercial Foundation here.
The evo Foundation will do more ‘fun stuff’ to raise money; we want to support education and hardship and make a difference in the communities where we operate. Just writing a cheque to BOSS or attending a dinner is not enough and I’d suggest more charity is better than less.
The evo Foundation will aim to fundraise around £100,000 a year. Hopefully, employees can have some fun, we can raise some money and if it helps evo demonstrate we are good corporate citizens, then it is all great.
W360: Do you have any events lined up already for this year?
AG: Yes, employees across the business have come forward with suggestions and we have a full calendar of events. Remember, everybody at evo now gets two charity days a year – it was one last year. In March, Adrian Butler [Managing Director of VOW] and I hosted a Hole-in-One challenge; while in Ireland, we have a GAA match coming up, followed by Dragon Boat races in Leeds and a darts event to come in the autumn. There are more in the works, but I don’t want to spoil any surprises – some of my colleagues might read this article.
I’m also trying to learn from external successes, like the great work the Commercial Foundation does with disadvantaged youngsters. Arthur and Simone Hindmarch deserve a lot of credit for their efforts. So, expect something along those lines at an evo warehouse in 2024.
I think long after I’ve gone, the evo Foundation might be one of the things people look back on and say, “That was a good idea”.
W360: Your legacy.
AG: I note your enthusiasm for the topic, but I’m just warming up.
W360: I was going to say it’s early in your tenure to talk about your legacy.
AG: Agreed. There is plenty to do on the business front – it will not be dull.
W360: I want to ask a few closing questions regarding the future before we wrap up this interview. First off, are there any AI-related projects now in progress?
AG: I expect every organisation is looking at this topic and it is one we all need to embrace. If technology can take care of monotonous tasks/functions, let’s do it. If it can make information available 24/7, let’s do it.
Luke Blanks, our IT Director, is leading our efforts here and we are trying to learn from others. But – and this is important – I want my customers and suppliers to be able to speak with a person, so we will be going on the AI journey in a controlled manner.
W360: Part one of this interview highlighted what you’ve achieved in the past 12 months, so my second question is about your plans for the future.
AG: Right now, the focus is on 2024, and we have a clear plan that we are looking to execute to deliver our FY24 goals. As we work through those, the ideas for FY25 onwards will be developed based on the themes already discussed [read part one – Rising to the challenge].
I don’t believe in ‘strategy’ – it is more often than not something folks in expensive suits like to write down but don’t do. I plan to deliver, so expect the evolution to continue. I’m only 54, so there is much more fun to come with evo; but do I plan on being here in ten years? No – I’ve other things to do.
W360: Didn’t you say that 15 years ago?
AG: OK, fair challenge; but I think I’ve got a better job now that hopefully gives me a little more control of my destiny!
Folks also ask whether I’ll leave when Endless exits. The answer is, I don’t know. I might do, particularly if the future doesn’t look interesting. Assuming the next investing cycle excites me, then I’d be up for more fun. If not, someone else can do it.
Until then, I’m going to continue to fix this business. I’ve got more to do.
W360: Thanks Andrew.
Ed’s note: Due to a delay from the auditor, evo’s financial results were not available in time to discuss them during this interview. Workplace360 will publish that follow-up in the June issue.
