Financial performance

In 2016 we have taken the opportunity to review our Key Performance Indicators (KPIs) to better align them to our Ignite strategy.

KPIs provide insight into how the Board and Executive Committee monitor the Group’s strategic and financial performance, as well as directly linking to the key measures for Executive remuneration.

Definition:
Consideration receivable from the sale of goods and services. It is stated net of rebates and any discounts, and excludes sales related taxes.

Why we measure it:
Top-line growth is a key financial metric of both ‘Becoming the OEMs’ Partner of Choice’ and ‘Leading in Customer Experience’.

2016 Highlights:
The Group has delivered £7.8bn, growth of 14.7% vs. last year.

Definition:
Operating profit (before exceptional items) divided by sales.

Why we measure it:
A key metric of operational efficiency, ensuring that we are leveraging global scale to translate sales growth to profit.

2016 Highlights:
Operating margin is down 10 bps vs. 2015 driven by mix and currency impact.

Definition:
Represents the profit made after operating and interest expense excluding the impact of exceptional items before tax is charged.

Why we measure it:
A key driver of delivering sustainable and growing earnings to shareholders.

2016 Highlights:
In 2016 this increased by 12% to a record £349.4m.

 

 

Definition:
Net cash flows from operating activities, before exceptional cash flows, less normalised net capital expenditure and dividends paid to non-controlling interests.

Why we measure it:
A key driver of the Group’s ability to ‘Invest to Accelerate Growth’ and to make distributions to shareholders.

2016 Highlights:
The Group delivered free cash flow of £190.5m, a 7.3% improvement on 2015.

Definition:
Operating profit (before exceptional items) divided by the average of opening and closing capital employed, where capital employed is defined as net assets less net funds.

Why we measure it:
A key measure of Ignite (Invest to Accelerate Growth), ROCE is a measure of the Group’s ability to drive better returns for investors on the capital we invest.

2016 Highlights:

The Group delivered ROCE of 30%. Underlying ROCE (excluding the acquisition of businesses in South America) was a record 33%.

 

 

The information presented in the table below is prepared in accordance with IFRS, as in issue and effective at that year end date.

Consolidated income statement 2016
£m
2015
£m
2014
£m
2013
£m
2012
£m
Revenue 7,838.4 6,836.3 6,702.7 6,524.9 6,085.4
           
Operating profit before exceptional items 359.1 324.7 318.4 286.9 259.8
Operating exceptional items (81.6) (49.5) (47.4) (8.5) 0.7
Operating profit 277.5 275.2 271.0 278.4 260.5
Share of profit / (loss) after tax of joint ventures and associates (0.1) 0.7 (1.9) - 0.2
Profit before finance and tax 277.4 275.9 269.1 278.4 260.7
Net finance costs before exceptional items (9.6) (13.3) (13.3) (12.3) (13.0)
Finance costs exceptional items - - - - -
Profit before tax 267.8 262.6 255.8 266.1 247.7
Tax before exceptional tax (88.0) (74.9) (68.6) (65.9) (60.8)
Exceptional tax (11.5) (4.8) - 0.6 0.5
Profit after tax 191.3 182.9 187.2 200.8 187.4
Non controlling interests (6.9) (7.1) (7.6) (6.6) (5.9)
Profit for the year 184.4 175.8 179.6 194.2 181.5
           
Basic:          
- Profit before tax 267.8 262.6 255.8 266.1 247.7
- Earnings per share (pence) 43.2p 39.8p 39.7p 41.8p 39.4p
Adjusted (before exceptional items)          
- Profit before tax 349.4 312.1 303.2 274.6 247.0
- Earnings per share (pence) 59.6p 52.1p 50.2p 43.5p 39.1p
Dividends per share - interim paid and final proposed (pence) 23.8p 20.9p 20.1p 17.4p 14.5p
           
Consolidated statement of financial position          
Non-current assets 1,563.4 1,259.1 1,341.2 1,512.1 1,464.4
Other assets less (liabilities) excluding net funds (227.4) (183.6) (233.3) (135.9) (212.2)
  1,336.0 1,075.5 1,107.9 1,376.2 1,252.2
Net funds 26.5 166.4 210.2 123.0 276.2
Net assets 1,362.5 1,241.9 1,318.1 1,499.2 1,528.4
           
Equity attributable to owners of the parent 1,343.9 1,219.0 1,292.9 1,470.0 1,502.6
Non controlling interests 18.6 22.9 25.2 29.2 25.8
Total shareholders' equity 1,362.5 1,241.9 1,318.1 1,499.2 1,528.4