" From Sam and the Boys"

From the mild weather of late autumn to the severe conditions of December and January onwards, once again the year proved that that the future is always unpredictable. In recent months we have had some of the most severe conditions ever experienced in the British Isles, I myself, and friends of my generation have had difficulty remembering more severe times.

This caused our business many problems; although the influx of orders appears to have benefited our bottom line, actually making the deliveries proved difficult to say the least. The dangerous road conditions meant that our drivers had to be extra careful when making deliveries for the safety of themselves, our customers and the general public. In addition, staff all over the country found it difficult to get to work, in some cases offices and depots had to close. Customer relations became strained and the telephone lines were red hot.

We have had many challenges during the last year, and they have continued into 2010. Reduced volumes and more difficult margins meant that when the order book did start to fill, the logistics of getting to customers was more difficult. The support of all our staff is essential at such times and I would like to thank you all for your efforts over the past months.

Lately we have made a number of acquisitions and there may be a perception amongst staff that the process and finances involved in making strategic purchases is easy. At the same time, I’m aware that there has been a frustration with our decision to hold back on pay increases during 2009. The simple truth is that, as a business, fuel distribution is a low margin industry; only by controlling our cost base can we successfully compete in the marketplace. BP, Shell and Texaco/Chevron have all exited this business because it was no longer financially viable for them to remain. We are competing with smaller family-owned businesses that by their very nature can operate with much lower costs.

The terms and conditions currently enjoyed within GB Oils are in the highest quartile within the fuel distribution business in Britain. We’ll certainly be seeking to improve conditions within 2010 but we need to balance this against the competitive environment in which we are operating. At the same time we need to demonstrate that we are a fair and equitable company to work for and we reward staff at all levels for the efforts that they have put in to the company.

We want staff to take pride in the work they do and enjoy working for GB Oils. Our proposed improvements to internal communications and human resources processes aim to go someway to helping reinforce GB Oils’ culture and develop and sense of community that will not only benefit current employees but appeal to potential future staff members, investors and other stakeholders.

DCC will only allow us to make further acquisitions if we demonstrate that we can integrate our business model in a way that allows us to grow market share, develop customer satisfaction and retain staff morale. These are the ingredients for success and I assume no one wants to work for an unsuccessfully company.

Constructive feedback from our employees is always appreciated and goes a long way to improving communication channels. An anonymous blog does little, if anything, to improve real dialogue within any company. Only by genuine understanding of the company vision and we all attempt to participate in a meaningful future.

I thank you all for your commitment to customers, to your colleagues and to the company and I am confident that we can build a better shared future throughout 2010.

Thanks.

Sam Chambers