Resilient Revenues
We aim to achieve stable revenue growth by focusing on markets where the demand is funded by operating budgets which are less impacted by economic cycles than capital budgets. A high proportion of our revenues are generated from consumable products and service contracts and in many cases the products will be used in repair, maintenance and refurbishment applications rather than original equipment manufacture.
Where public sector funding or regulation is involved, year on year changes in funding may also be less dramatic. This has proved to be the case in recent years in Healthcare, Rail, Power Generation, Defence and Environmental industries which have been relatively insulated from economic cycles.
Our businesses also gain protection through offering specialised products and services, often used in technically demanding applications. This defends against customers quickly switching business to achieve better pricing when markets turn down. Markets such as Aerospace, Motorsport and Medical equipment, have proved to be more buoyant than the general industrial economy.
