Financial - Continuing businesses
We have an organic growth strategy based on strong market positions in structural growth markets.We have invested in improved customer service, innovation and sales and business development capabilities.
There is also great potential to sell more complex solutions which tend to have longer contract terms and higher margins.Over the medium term we expect to grow revenues by 4% to 6% per annum.
In 2016, revenues grew 6.3% to £6.8bn (2015: £6.4bn), with developed markets growing 6.8%, reflecting strong growth in North America and more modest
Emerging markets grew 5.4% with broad growthacross all four regions.
|PBITA (£m)||The Group has implemented a number of productivity programmes that are now driving efficiency and operational improvement across the Group. These include efficient organisation design, management de-layering, lean operating processes, efficient reporting and assurance processes, upgraded IT systems and efficient procurement.||In 2016, PBITA grew 9.7% to £454m (2015: £414m)
as a result of these initiatives increasingly having
tangible benefits. PBITA in emerging markets was up
0.5% and in developed markets PBITA increased by
Operating cash flow (£m)
A key priority for the Group is to drive improved cash generation, through enhanced working capital management and capital discipline and embedding a “cash matters” culture throughout the Group, as outlined in more detail on pages 26 and 27. A greater emphasis has been placed on cashflow generation in management incentive plans since 2016.
Operating cash flow was £638m (2015: £395m), up 61.5% as a result of the increased focus on this area.
Strong cash flow and working capital management performances were delivered across most of the Group.
|EPS (pence per share)||Operating cash flow was £638m (2015: £395m), up 61.5% as a result of the increased focus on this area. Strong cash flow and working capital management performances were delivered across most of the Group.||
Helped by revenue growth, improved PBITA margins and lower interest costs, earnings from continuing businesses increased 16.6% to £246m (2015: £211m) in 2016.
EPS from continuing businesses increased 16.5% to 15.91p (2015: 13.66p).
Non financial KPIs
In addition to the financial KPIs, the group has a set of performance measures aligned to its strategic priorities. These measures include employee retention, contract and customer retention, lost-time injuries and other H&S measures.
A description of these performance measures and our progress against them is shown throughout the strategic report.