Highlights

Financial highlights

20172016
Revenue£690.2m£600.6m
Headline operating profit1£123.9m£99.6m
Return on sales218.0%16.6%
Operating profit£119.4m£94.5m
Headline profit before taxation1£121.5m£97.0m
Profit before taxation£117.0m£91.9m
Net cash£39.6m£1.1m
Basic headline earnings per share349.2p37.0p
Basic earnings per share51.0p35.2p
Ordinary dividend per share17.4p15.8p
Special dividend per share25.0p–
Return on capital employed419.3%17.1%

Operational highlights

  • Revenue growth of 14.9% to £690.2m; revenue growth at constant currency was 9.6%, well above the background market growth rates
  • 24% growth in headline operating profit to £123.9m
  • Return on sales improvement to 18.0% (2016: 16.6%)
  • Basic headline EPS increased 33% to 49.2p
  • ROCE increased to 19.3% (2016: 17.1%) notwithstanding the increased rate of capital investment
  • Headline operating cash flow5 of £111.7m (2016: £91.4m)
  • Headline operating cash conversion6 at 90%; £83.0m free cash flow7 (2016: £60.5m)
  • Full year ordinary dividend 17.4p, up 10%, and special dividend 25.0p (2016: nil)
  1. Headline operating profit and headline profit before taxation exclude amortisation of acquired intangibles of £4.5m (2016: £4.5m) and acquisition costs of £nil (2016: £0.6m).
  2. Return on sales is defined as headline operating profit as a percentage of revenue.
  3. A detailed EPS reconciliation is provided in note 10.
  4. Return on capital employed (ROCE) is defined as headline operating profit of £123.9m (2016: £99.6m) divided by the average of opening and closing capital employed of £642.5m (2016: £582.3m). Capital employed is defined as net assets adjusted for net cash/(debt).
  5. Headline operating cash flow is defined as cash generated by operations of £182.8m (2016: £146.3m) less net capital expenditure of £74.8m (2016: £63.1m) and before cash flow relating to restructuring of £3.7m (2016: £7.6m) and acquisition costs of £nil (2016: £0.6m).
  6. Headline operating cash conversion is defined as headline operating cash flow divided by headline operating profit.
  7. Free cash flow is defined as cash generated by operations of £182.8m (2016: £146.3m) less net capital expenditure of £74.8m (2016: £63.1m) and financing costs of £2.1m (2016: £2.3m) and taxation of £22.9m (2016: £20.4m).