The Board and the Operational Management teams regularly monitor and develop a range of financial and non-financial Key Performance Indicators (KPIs) to allow them to measure performance against expected targets, which can be analysed under various categories
The following represents a selection of these indicators:
Financial KPIs
Link to strategy
Relevance and performance
Growth is about more than just the top line. Controlling our cost base is a key part of our investment plans.
Reflecting our success in this area, underlying operating margin has increased by 470bps, from 6.6% in 2013 to 11.3% in 2017. This represents margin growth since 2013 of 14.4% p.a.
Historic performance
Position on target?
✔
Link to strategy
Relevance and performance
Underlying profit before tax is a key measure of the underlying performance of the business.
Our underlying profit before tax has grown by over 180.8% (or 29.4% p.a.) since 2013.
Historic performance
Position on target?
✔
Link to strategy
Relevance and performance
Our quality of earnings is reflected in our ability to consistently turn underlying EBITDA in to underlying cash.
2017 was strongly cash generative with a conversion rate of 97.3% (2013: 85.3%).
Historic performance
Position on target?
✔
Link to strategy
Relevance and performance
ROCE measures the return that we are able to provide to both our equity and debt investors. Maintaining this continues to be a key focus of the Group.
Since 2013 our ROCE has grown by 13.3% p.a. to 19.9% (2013: 12.1%).
Historic performance
Position on target?
✔
Link to strategy
Relevance and performance
EPS is a key target for the Group. Our clear strategy for growth is focused on increasing this ratio year-on-year.
Since 2013 underlying diluted EPS has increased by 8.09p to 12.82p (2013: 4.73p).
Historic performance
Position on target?
✔
Link to strategy
Relevance and performance
£86.0m of Group sales come from 25 key multinational OEMs. Working to grow this revenue as well as building relationships with new multinational OEMs is the backbone of our overall growth strategy.
Historic performance
Position on target?
✔
Non-financial KPIs
Link to strategy
Relevance and performance
Training programmes continue to be developed that allow our employees across the globe to learn together and share best practice. These programmes include operational, functional and leadership elements and are designed for our employees to enhance existing, and acquire, new skills.
Historic performance
Over the last three years, 21% of UK employees have completed the management development programme.
Position on target?
✔
Link to strategy
Relevance and performance
By expanding our manufacturing capabilities and capacities around the world, we will not only reduce our reliance on purely distribution revenues, but we will also be able to improve our profit margins as revenues increase faster than the underlying semi-fixed cost bases we have in our manufacturing sites.
Historic performance
Key
Distribution
Manufacturing
Position on target?
✔
Key to Strategic Pillar icons
Acquisitions
Investing in people
Operational efficiencies
Continue to add value and differentiate
Investment driven growth
Read about our Group Strategy