Section 172 Statement
MITRE SPORTS INTERNATIONAL LIMITED
Registered number: 02688851
The Companies (Miscellaneous Reporting) Regulations 2018 requires Mitre Sports International Limited to publish a statement explaining how the directors have given due regard for the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 while performing their duty to promote the success of the company for the benefit of its members as a whole (“section 172 statement”). Below is the section 172 statement for Mitre Sports International Limited captured by these regulations.
Extract from the Strategic Report for the year ended 31 December 2023
Requirement to report in respect of Section 172 Companies Act 2006
The following disclosure describes how the directors have approached and met their responsibilities under section 172 of the Companies Act 2006, and in particular how the directors have satisfied themselves that they have acted in a way which is most likely to promote the success of the company for the benefit of its members as a whole, and in doing so having regard for stakeholders interests, and forms the directors’ statement required under section 414 of the Companies Act 2006.
As a business we set high expectations for ourselves, our people, our business partners and our suppliers. We have presented below a summary of the key stakeholder groups, as well as the key decisions made during the year, with reference to how our key stakeholders were impacted and how the directors engaged with those stakeholders to promote the success of the company.
Pentland Group Limited
Pentland Group Limited is the company’s immediate parent undertaking and provides intercompany funding to the company. Continued access to capital is vital to the long-term success of the company.
Regular profit and cash flow forecasts are provided to Pentland Group Limited and the Group Treasury function, not only to advise on when funding is needed, but also to highlight sales and profit growth to ensure we are creating value for the ultimate shareholders. These are challenged and scrutinised as well as regular forecast update and outlook processes.
Suppliers
Our suppliers are fundamental to the quality of our products. Most of our stock is sourced from outside the UK so it is important to ensure that we are compliant with trading standards and regulations, such as the Modern Slavery Act, to meet the highest standards of social responsibility. Our Risk Committee allows us to highlight any challenges associated with various regions due to political or economic instability that may impact our ability to act in accordance with the standards of conduct we set ourselves, or our ability to meet customer demands, and support our suppliers if necessary.
Much of the engagement with our suppliers is through our sourcing partners, though we regularly assess the results of our Payment Practices Reporting for all suppliers to ensure that we are meeting their liquidity demands.
Modern slavery can occur in any global supply chain and is particularly prevalent in the apparel and footwear industry, so understanding where the risk is higher helps us evolve our approach. In 2023, Pentland Brands, our brands portfolio manager and sister company, partnered with Segura, a technology platform to help drive more transparency and traceability within the supply chain. Pentland Brands is due to publish its annual Modern Slavery report (covering 2023 activities) later this year, sharing how it is seeking to improve the lives of the workers in its sourcing markets and work towards 100% transparency across its supply chain.
The ‘Our Standards’ policy provides our partners with guidance on working ethically and transparently and is now available in the languages of all our major sourcing markets. We are continuing to look at how we can work collaboratively with our suppliers to manage risks. You can read both the Modern Slavery report and Our Standards policy on the Pentland Brands website -- pentlandbrands.com/reports-and-resources/.
Customers
Sustaining long lasting relationships with our customers is vital to the success of the company and regular meetings take place to ensure this continues. We also regularly review terms in place and ensure that both the company and the customer can meet the demands placed on them.
Any significant decisions on new product ranges or investment/divestment in distribution channels must take customer needs into consideration, and engage with those customers as necessary.
Employees
Whilst all employee contracts are now held by Pentland Brands Limited, the company recognises that a number of those employees represent the company in the conduct of its principal activity. Accordingly, we believe they are crucial to operating our business successfully and engage to ensure that we are fostering an environment in which they are happy to work.
We recognise the significant challenges that many people are currently facing when it comes to cost-of-living crisis and we care about the impact this is having on individuals’ ability to pay bills and meet basic requirements.
In response, Pentland Brands agreed a 7% annual salary increase for all employees from 2023, bringing forward the application of this from April 2023, to January 2023. Pentland Brands also introduced a package of support for employees including money coaching and financial education sessions.
Community
Respect for the people and the environment has long been at the heart of our business and we strive to do the right thing, not the easy thing, and make all our decisions in good conscience.
Pentland Brands has made significant progress since the launch of its 100-1-0 sustainability goals in November 2021. Pentland Brands is due to publish its annual Positive Business report (covering 2023 activities) later this year, which will share how it has worked towards achieving its ambitious 100-1-0 goals. Once published, the report can be found on its website -- pentlandbrands.com.
In 2023, Mitre announced a three-year partnership with the Homeless World Cup, which uses sport to transform the lives of those who have experienced homelessness.
You can read more about some of the actions Pentland Brands and our brands are taking across all areas at pentlandbrands.com/news/.
Our Principal Decisions
Mitre FA Partnerships
In October 2023, Mitre announced a new three-year partnership with The Football Association (FA). The deal will see Mitre continue in its role of official ball supplier across FA competitions including the Emirates FA Cup, the Women’s FA Cup, the Isuzu FA Vase, the Isuzu Trophy and the Golden Ball Awards until the end of the 2026/27 season.
In May 2023, Mitre was announced as the official match ball supplier for The Soccer Tournament (TST), a ground-breaking world soccor championship in the US featuring a winner-take-all prize of $1 million.
The tournament included prominent clubs from the UK, Europe, and Asis, competing in an intense 7v7 high-stakes knockout competition.
Greenhouse Gas Emissions and Energy Consumption
The disclosure on greenhouse gas emissions and energy consumption for the company is stated in the consolidated financial statements of Pentland Group Holdings Limited. These are prepared in accordance with The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.