Our KPIs

Our strategic progress is measured against our KPIs

Our KPIs

Financial - Core businesses

KPI Description Performance
Revenue (£bn)

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 on average by 4% to 6% per annum.

In 2017, revenues grew 3.2% to £7.4bn (2016: £7.2bn), with developed markets growing 4.3%, reflecting strong growth in North America and modest growth in Europe and the UK.

Emerging markets grew 1.5% with good growth across Africa, Asia Pacific and Latin America offset by a decline in the Middle East & India region. 

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 2017, Adjusted PBITA grew 4.2% to £496m (2016: £476m) as a result of revenue growth of 3.2% and our productivity initiatives having tangible compounding benefits. Adjusted PBITA in emerging markets was down 4.8% due to the challenging environment in Middle East & India whilst in developed markets Adjusted PBITA increased by 9.1%.

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. Greater emphasis has been placed on cashflow generation in management incentive plans since 2016.

Operating cash flow was £527m (2016: £633m), down 16.7% as expected following a higher than normal cash generation in 2016. The cash conversion rate was 106% (2016: 133%), in line with our guidance of over 100% of Adjusted PBITA. Good cash flow and working capital management performances were delivered across most of the Group.
EPS (pence per share) 

G4S is aiming to deliver sustainable growth in adjusted earnings over the long-term. Adjusted EPS growth is a component of both the annual and long-term management incentive plans.

Helped by revenue growth, improved Adjusted PBITA margins and lower non-controlling interests, adjusted earnings from core businesses increased 5.7% to £277m (2016: £262m) in 2017.

Adjusted EPS from core businesses increased 5.9% to 17.9p (2016: 16.9p).

Other financial and 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 health and safety measures.

A description of these performance measures and our progress against them is shown throughout our strategic report.

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