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. These can be analysed under various categories. The following represents a selection of these indicators:
Financial KPIs
Group total revenue
Relevance and performance
Our clear strategy for growth makes turnover an important barometer of the Group's success.
Turnover has grown significantly from 2012, increasing by 43.5% to £161.4m (2012: £112.5m), equating to 9.4% p.a.
Historic performance
Position on target?
Targets
To continue to grow Group revenue
Underlying operating margin enhancement
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 540bps, from 5.0% in 2012 to 10.4% in 2016. This represents margin growth since 2012 of 20.1% p.a.
Historic performance
Position on target?
Targets
To continue to grow Group underlying operating margin
Group underlying profit before tax
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 220% (or 33.7% p.a.) since 2012.
Historic performance
Position on target?
Targets
To continue to grow Group underlying profit before tax
Cash conversion as a % of underlying EBITDA
Relevance and performance
Our quality of earnings is reflected in our ability to consistently turn underlying EBITDA in to cash.
2016 was strongly cash generative with a conversion rate of 88.9% (2012: 67.6%).
Historic performance
Position on target?
Targets
To continue to generate cash from underlying EBITDA
Return on Capital Employed ('ROCE')
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 2012 our ROCE has grown by 13.1% p.a. to 18.5% (2012: 11.3%).
Historic performance
Position on target?
Targets
To maintain Return on Capital Employed (ROCE)
Underlying diluted earnings per share ('EPS')
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 2012 underlying EPS has increased by 6.23p to 9.99p (2012: 3.76p).
Historic performance
Position on target?
Targets
To continue to grow underlying diluted earnings per share
Non-financial KPIs
Multinational OEM penetration
Relevance and performance
Over 60% of the Group's revenue is derived from multinational OEMs despite operating at a less than 25% site penetration. Working to increase this penetration is a key part of our clear strategy for growth.
Historic performance
Multinational OEM penetration 2016: range on average from 10% to 40% site penetration in our top 50 OEM customers
Position on target?
Targets
To increase our penetration in our multinational OEM customers
Broaden skills of management
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, 17% of UK employees have completed the management development programme
Position on target?
Targets
To roll out the training programmes, already proven to be a success in the UK, to other sites across the globe