Use the options below to decide which types of cookies you would like to enable or disable. You can read more about each cookie type by clicking on them below or view our cookie policy.
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. Without these cookies, some parts of our site or the service being requested will be impossible to provide.
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of the site. They help us to know which pages are the most and least popular and see how visitors move around the site.
All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
We use statistics cookies to analyse traffic on this site. To find out more review our cookie policy.
1. Underlying operating profit and margin1
This is the principal measure used to assess the success of the Group's strategy. We are focused on driving growth in operating profit in order to drive higher and sustainable returns for our investors.
Underlying operating profit is defined as operating profit before non-underlying items and the results of JVs and associates. Underlying operating margin is calculated as underlying operating profit expressed as a percentage of revenue.
Underlying operating profit has increased by £6.2m (23.0 per cent) over the prior year, reflecting strong operational delivery. The consistent margin, at 6.7 per cent, reflects the dilutive effect of the increase in steel prices.
2. Underlying basic earnings per share (EPS)
EPS is one of the key metrics in measuring shareholder value and a performance condition of the Group's performance share plan ('PSP'). The measure reflects all aspects of the income statement, including the performance of India and the management of the Group's tax rate.
EPS is calculated as underlying profit after tax divided by the weighted average number of shares in issue during the period.
EPS has increase by 18 per cent, reflecting the increase in underlying profit.
3. Revenue growth2 (on a like-for-like basis)
This is a key measure for the business to track our overall success in specific contract activity, our progress in increasing our market share and our ability to maintain appropriate pricing levels.
This represents the year-on-year percentage change in revenue from Group operations as reported in the accounts.
Revenue has increased by £88.2m (21.8 per cent) compared to last year, reflecting an increase in production activity and order flow.
2 This now includes all acquisitions (Prior year excluded DAM but has been restated for comparability)
4. Operating cash conversion
Cash is critical for providing the financial resources to develop the Group's business and to provide adequate working capital to operate smoothly. This measures how successful we are in converting profit to cash through management of working capital and capital expenditure.
Operating cash conversion is defined as cash generated from operations after net capital expenditure (before interest and tax) expressed as a percentage of underlying operating profit (before JVs and associates).
Operating cash conversion was +145 per cent, which is well ahead of our target conversion rate of +85 per cent. This reflects the unwind of the unusually high working capital position in the prior year and customer advances.
5. Return on capital employed
ROCE measures the return generated on the capital we have invested in the business and reflects our ability to add shareholder value over the long term. We have an asset-intensive business model and ROCE reflects how productively we deploy those capital resources.
ROCE is calculated as underlying operating profit divided by the average of opening and closing capital employed. Capital employed is defined as shareholders' equity excluding retirement benefit obligations (net of tax), acquired intangible assets and net funds.
ROCE has increased by 2.3 percentage points to 15.8 per cent, reflecting increased profitability. This is above our benchmark of 10 per cent.
6. Order book
The order book is a key part of our focus on building long-term recurring revenue. It is an important measure of our success in winning new work. Whilst the revenue within the order book is reported externally, the margin inherent within the order book is monitored internally to provide visibility of future earnings.
Our UK and Europe order book shows the total value of future revenue secured by contractual agreements.
Our high-quality UK and Europe order book stands at £510m at the end of June 2023, representing a £24m increase from June 2022. The strong order book gives us good earnings visibility and leaves us well positioned to deliver our strategic objectives.
7. Injury frequency rate ('IFR')
1 The 2022 IFR has been adjusted to include DAM structures.
IFR is an industry-standard measure of the safe operation of our business and is one of a number of health and safety measures the Group uses to monitor its activities. In recent years, we have shifted our focus to the Group's injury frequency rate. IFR focuses on a variety of incidents, ranging from minor to potentially more serious.
IFR is the number of reportable injuries per 100,000 hours worked.
Following significant improvements in previous years, our IFR has increased to 1.61 from 1.49. Although our safety statistics continue to be industry-leading, we remain committed to continually improving and focusing on leading indicators in our pursuit of 'no harm'.
Key to stakeholder linkage
Clients
Employees
Shareholders
Communities
Suppliers
Key to strategicpillar
Growth
Operational excellenc
India
People
1See note 31 for APM definitions and reconciliation to IFRS measures