Our progress in implementing our strategic objectives is measured using key performance measures aligned to those objectives and the group values:
||We have an organic growth strategy based on strong market positions in structural growth markets. We are investing in improved customer service, innovation and sales and business development capabilities. We believe there is also great potential to sell more complex solutions which tend to have longer contract terms and higher margins.
||In 2015, revenues grew 4.0% to £6.4bn (2014 restated: £6.2bn), with emerging markets growing 8.6% with broad growth across all three regions and developed markets growing 1.6%, with strong growth in North America and a return to growth in Europe offsetting a decline in the UK.
||The group has a number of productivity programmes to drive efficiency and operational improvement across the group. These include efficient organisation design, management delayering, lean operating processes, efficient reporting and assurance processes, upgraded IT systems and efficient procurement.
|In 2015, PBITA grew 5.7% to £427m (2014 restated: £404m) as a result of these initiatives starting to have some benefit. PBITA in emerging markets was up 9.2% and in developed markets PBITA decreased by 1.0%
|Underlying operating cash flow
||A key priority for the group is to drive improved cash generation, through leaner working capital management and capital discipline and embedding a “cash matters” culture throughout the group as outlined in more detail on pages 28 and 29. An even greater emphasis has been placed on cash in management incentive plans from 2016.
||Underlying operating cash flow was £460m (2014 restated: £528m), down 13% mainly due to a temporary increase in working capital associated with strong revenue growth in the second half of 2015 and transition to a UK financial shared service centre.
|Underlying EPS (pence per share)
||G4S is looking to deliver sustainable growth in earnings over the long term. EPS growth is a component of both the annual and long term management incentive plans.
||Helped by revenue growth, improved PBITA margins and lower interest costs underlying earnings increased 14% to £227m (2014 restated: £199m) in 2015. Underlying EPS also increased 14% to 14.7p (2014 restated: 12.9p).
Non financial KPIs
In addition to the financial KPIs, the group has a set of performance measures aligned to its strategic priorities. A description of these performance measures and our progress against them is shown on our strategic priorities page.