Key Performance Indicators

We assess our performance across a wide range of metrics. To support the Group’s strategy and to monitor performance, the Board of Directors and the Executive Committee use a number of financial and non-financial Key Performance Indicators (KPIs).

Our KPIs provide a balanced set of metrics that give emphasis to both financial and non-financial measures. These help the Board and the Executive Committee assess performance and progress against our strategic priorities and business plans. Divisional and global business unit management use these and additional benchmarks and other KPIs to evaluate operating performance and make financial, strategic and operating decisions.

In order to measure the organic performance of the business, management further review the headline KPIs excluding the impacts of acquisitions and foreign exchange.

Full details can be found in the 2019 Annual Report.

KPI 2019 2018 Why a KPI? Performance Commentary
Financial KPIs ? ? ? ?
Organic constant-currency revenue growth 1,2 ?0.8% 7.4%
  • Creating consistent long-term value for shareholders.
  • Focus on higher growth markets, where we are growing and have room to grow.

On an organic constant-currency* basis revenue grew £8.2 million, 0.8%. See Review of operations on pages 32 to 40 of the 2019 Annual Report.

Group headline operating profit
margin 1
12.8% 12.1%
  • Creating consistent long-term?value for shareholders.
  • To have a culture of operational excellence and cost-efficiency.
Margin improvement from operational
efficiency and the benefits of additional
volume.
Free cash flow before
acquisitions, disposals and dividends 1
£59.2m £48.5m
  • Creating consistent long-term?value for shareholders.
Higher cash from operations was offset by increased net capital expenditure, net interest (including lease liabilities) and
tax paid.
Return on invested?capital 1 17.4% 18.1%
  • Creating consistent long-term?value for shareholders, providing an indication of capital efficiency.
The adoption of IFRS 16 Leases has depressed this measure, excluding this impact ROIC* was 18.2% with improvements in return on invested capital are primarily driven by increased headline operating profit*. See page 44 of the 2019 Annual Report.
Non-financial KPIs ? ? ? ?
Employee turnover 15.6% 13.4%
  • To attract, retain, and develop?the right people in the right roles.
The increase in employee turnover in 2019 is driven by local labour market pressure for semi-skilled employees in our manufacturing facilities, particularly in Hungary and some of our sites in the north-east of the US.
Lost Time Accident?Frequency2
(per 100,000?hours worked)
0.14 0.22
  • To maintain a workplace that focuses on the health and safety of its employees and others affected by the Group’s operations.
The focus placed on health and safety at all sites and across all levels of the Group through ‘thinkSAFE’ has led to a lower
total accident frequency, with a lower Lost-time impact.
1. Definitions of these non-GAAP measures, and their reconciliation to the relevant GAAP measure, are provided on pages 42 to 44 of the 2019 Annual Report.
2. This KPI uses revenue at constant-currency 1 in its calculation.

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