Advanced Business Reading

MINUTES OF THE BOARD MEETING

Royal Stoke Ceramics plc
28 October, 09:30-13:15
Heritage Room, Stoke Factory

Present: William Wedgwood (Chair), Margaret Chen (CEO), James Porter (CFO), Elizabeth Davies (COO), Thomas Wright (NED), Patricia Miller (NED)

Apologies: None

The Chairman opened the meeting by addressing the ongoing challenges facing the traditional ceramics sector. Particular attention was drawn to rising energy costs and their impact on kiln operations.

Production Review
Mrs. Davies presented a comprehensive analysis of production efficiency across all three factories. The newly installed energy-efficient kilns at Plant 2 have reduced gas consumption by 23%, though installation costs were $75,000 above initial estimates. The Board extensively discussed the implications of rolling out similar upgrades across all facilities. Mr. Porter raised concerns about the capital expenditure timeline, but Mrs. Chen emphasised the urgency of modernisation given increasing environmental regulations.

The Board unanimously approved the modernisation programme for Plants 1 and 3, with work to commence in January next year.

Heritage Collection Performance
Sales figures for the Heritage Collection exceeded expectations, with particular success in the Asian market. The limited-edition Botanical Series has generated significant interest among collectors, with pre-orders reaching $2.3m. Mrs. Chen noted that social media engagement around the collection has created unprecedented online visibility for the brand.

However, the Board expressed concern about production capacity meeting demand. After lengthy discussion, it was agreed to maintain current pricing despite supply constraints, protecting the brand's premium positioning.

Apprenticeship Programme
Mr. Wright presented a detailed review of the company's apprenticeship scheme. While retention rates remain strong at 85%, recruiting young talent continues to prove challenging. The Board approved a proposal to partner with local schools and colleges to promote traditional craft skills alongside modern ceramic technology.

Environmental Compliance
The upcoming carbon pricing regulations were discussed at length. Mr. Porter presented projections showing a potential impact of $850,000 annually unless significant operational changes are implemented. Mrs. Miller emphasised the reputational risks of failing to meet environmental standards.

The Board approved the formation of a dedicated Environmental Compliance Committee, to be chaired by Mrs. Miller.

Acquisition Opportunity
The potential acquisition of Henderson's Pottery was discussed confidentially. While their traditional expertise and market position are attractive, concerns were raised about pension liabilities and facility modernisation costs. The Board instructed Mr. Porter to conduct further due diligence.

Meeting closed at 13:15
Next meeting scheduled for 25 November

Signed: William Wedgwood (Chairman)
Date: 30 October