We use the following Key Performance Indicators (KPIs) to measure the performance of our business and progress against our strategic objectives.

Revenue Growth

Revenue growth captures our performance in the main tenets of our business model: meeting customer requirements; developing new products; expanding geographically; and making acquisitions.

Revenue growth in constant currency is a good measure of the growth in the predominantly overseas division – Metals Filtration. Underlying growth captures the growth excluding the impact of the large projects which as a result of their size mask the underlying performance of the rest of business.

Performance in 2015

Following the unusually large revenue recorded in 2014 from the large projects, revenue in 2015 fell back from its highs of 2014. Over a five year period the underlying revenue growth in Microfiltration is 8% and in Metals Filtration it is 6%.

KPIs

Revenue Growth Revenue growth

Revenue growth at constant currency Revenue growth at constant currency

Underlying revenue growth

Revenue growth – Metals filtrationRevenue growth – Metals filtration

Revenue growth – MicrofiltrationRevenue growth – Microfiltration

Underlying revenue growth – MicrofiltrationUnderlying revenue growth – Microfiltration

Operating Margin – Group

Operating margins demonstrate the Group’s propensity to turn revenue into profits.

Performance in 2015

Operating margin in Metals Filtration reduced to 8% as a result of lower constant currency revenues and the impact of startup costs of the new Chinese plant. In Microfiltration the operating margin increased to 15%. The benefits of a cost reduction exercise at the end of 2014 and a higher margin from the large projects account for the improvement.

KPIs

Operating Margin – Group Operating Margin – Group

Operating Margin – Metals filtration Operating Margin – Metals filtration

Operating Margin – Microfiltration Operating margin – Microfiltration

Profit before tax growth

A measure of the profits of the business after all costs and finance charges have been taken into account but before corporation tax.

KPIs

Profit before Tax Growth Profit before Tax Growth

Basic earnings per share growth

Basic earnings per share growth gives a measure of our ability to deliver earnings growth for our shareholders.

Performance in 2015

Basic earnings per share growth is lower than the profit before tax growth as a result of a small increase in the shares in issue during the year.

KPIs

Basic earnings per Share Growth Basic earnings per share growth

Cash generated from operations less interest

Cash generated from operations less interest gives a measure of the cash generating capabilities of the underlying operations.

Performance in 2015

Cash generated from operations less interest has been high since 2013 as a result of the good performance of the Group, and the cash received on the large projects being in excess of the revenues recognised on these projects.

KPIs

Cash generated from operations less interestCash generated from operations less interest

Interest cover

Interest cover is a measure of the number of times our operating profits could pay our finance costs. The Board considers a figure higher than five times indicates that the Group can comfortably service its debt.

Performance in 2015

Interest cover is high as a result of the Group having very low gross borrowings throughout the year and a manageable pension deficit.

KPIs

Interest Cover Interest Cover

Post tax return on capital employed

Post tax return on capital employed gives a measure of financial return from all of the invested capital in the business. A return higher than the Group’s weighted average cost of capital is satisfactory.

Performance in 2015

The Group’s return on capital employed improved in 2015 as a result of higher profits and a lower capital employed arising from an increase in the Group’s net cash position. It exceeded the Group’s weighted average cost of capital of 9%.

KPIs

Post tax return on capital employedPost Tax Return on Capital Employed

Post tax return on operating capital employed

The post tax return on operating capital employed gives a measure of the Group’s ability to make financial returns from the fixed assets and working capital employed in its operations. It ignores the goodwill arising on acquisitions and the impact of the pension deficit.

It gives a simple measure of the Group’s ability to make returns from its investments in plant and equipment and working capital.

Performance in 2015

The Group’s return on operating capital employed improved in 2015 as a result of higher profits and a lower capital employed arising from an increase in the Group’s net cash position.

KPIs

Post tax return on operating capital employedPost Tax Return on Operating Capital Employed

Regulatory News

Additional Listing

22 Jun 2017

Trading Update

05 Jun 2017

AGM resolutions

11 Apr 2017

Financial Calendar

Half year 2017 results announcement

27 Jun 2017

Ex-dividend date

27 Jul 2017

Record date for dividend

28 Jul 2017