KPIs
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
The following represents a selection of these indicators
View the performance of the KPIs
Strategic pillars
Core strategy
Acquistions
Investing in people
Operational efficiencies
Continue to add value and differentiate
Investment driven growth
Read more on our strategy
| Financial KPIs | Link to strategy | Targets |
|---|---|---|
| Group total revenue | |
Our clear strategy for growth makes turnover an important barometer of the Group’s success Turnover has grown significantly from 2015, increasing by 35.1% to £209.0m (2015: £154.7m), equating to 7.8% p.a. |
| Underlying operating margin* | |
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 170bps, from 9.9% in 2015 to 11.6% in 2019. This represents margin growth since 2015 of 4.0% p.a. |
| Group underlying profit before tax* | |
Underlying profit before tax is a key measure of the underlying performance of the business Our underlying profit before tax has grown by over 64.5% (or 13.2% p.a.) since 2015 |
| Underlying Cash conversion as a % of underlying EBITDA* | |
Our quality of earnings is reflected in our ability to consistently turn underlying EBITDA in to underlying cash The Group continued to be cash generative in FY2019 with a normalised† conversion rate of 84.1% |
| Underlying Return on Capital Employed (‘ROCE’)* | |
ROCE measures the return that we are able to provide to both our equity and debt investors. Maintaining this strong ROCE % continues to be a key focus of the Group Since 2015 our ROCE has remained above 18.5% |
| Underlying diluted earnings per share (‘EPS’)* | |
EPS is a key target for the Group. Our clear strategy for growth is focused on increasing this ratio year-on-year Since 2015 underlying diluted EPS has increased by 5.85p to 14.53p (2015: 8.68p) |
| Strategic multinational OEM/Tier 1 revenue | |
Working to grow this revenue as well as building relationships with new multinational OEMs/ Tier 1’s is the backbone of our overall growth strategy |
* Before separately disclosed items (see note 2 in the financial statements). The relevance of these measures and calculations are also discussed in note 2, note 25 and the glossary on page 192 of our Annual Report. For reconciliations to equivalent GAAP measures, please see note 34 in the financial statements and the five year history on page 194 of our Annual Report.
| Non-financial KPIs | Link to strategy | Targets |
|---|---|---|
| Broaden skills of management | |
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 |
| Manufacturing to distribution ratio | |
By maintaining and 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 |
