Value Creation

Create value by consistently exceeding 20% ROATCE

We aim to create value by consistently exceeding a 20% pre tax return on all the capital invested in the businesses.

 

Return on adjusted trading capital employed (“ROATCE”) is defined as adjusted operating profit as a percentage of adjusted trading capital employed (“TCE”). Adjusted TCE excludes net cash and non‑operating assets and liabilities, but includes all goodwill and acquired intangible assets.

Strong Cash Flow

Generate consistently strong cash flow to fund growth strategy and dividends

An ungeared balance sheet and strong cash flow have funded this growth strategy while providing healthy dividends.

 

Free cash flow is defined as the cash flow generated after tax, but before acquisitions and dividends. This measures the success of the Group and its businesses in turning profit into cash through the careful management of working capital and investments in fixed assets.

Acquisitions to Accelerate Growth

Accelerate growth through carefully selected value enhancing acquisitions

Carefully selected, value enchancing acquisitions accelerate the organic growth strategy and take us into new but related markets.

See our acquisition track record >

To complement the Group's organic growth strategy, the Group has an on-going acquisition programme, designed to accelerate growth and to facilitate entry into related strategic markets.

Attractive Margins

Maintain stable attractive margins

Our attractive margins are sustained through the quality of customer service, the depth of technical support and value adding activities. 

Operating margin is an important measure of the success of the businesses in achieving superior margins by offering strongly differentiated products and customer focused solutions, as well as by running efficient operations.

GDP + Organic Revenue Growth

Generate stable "GDP plus" organic revenue growth over the business cycle

We focus on essential products and services funded by customers' operating rather than capital budgets, giving stability to revenues. 

The businesses target organic revenue growth, over the economic cycle, at a rate of 5-6% p.a. ("GDP plus" growth), with higher growth rates achieved at the Group level through carefully selected value enhancing acquisitions.