GDP + Underlying Revenue Growth

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

We focus on Essential Products and services, funded by customers' operating rather than capital budgets, giving resilience to revenues.

The businesses target underlying 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.

Attractive Margins

Maintain stable attractive margins

Our attractive operating 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.

Agile and responsive organisation

We encourage an entrepreneurial culture in our businesses through our decentralised organisation.

Acquisitions to Accelerate Growth

Accelerate growth through carefully selected value enhancing acquisitions

Carefully selected, value enhancing acquisitions accelerate the underlying growth and take us into related strategic 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.

Strong Cash Flow

Generate consistently strong cash flow to fund growth strategy and dividends

A robust balance sheet and strong cash flow fund our growth strategy and provide healthy, growing dividends. Cash conversion was 113.3% this year and 101.6% over a five-year average.

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.

Value Creation

Create value by consistently delivering strong ROATCE

We aim to create value by targeting ROATCE in the high teens.

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.