20645_Scapa_AR_160504

STRATEGIC REPORT
UNDERLYING CASH FLOW
FROM OPERATIONS
£19.0M
13.0
10.1
18.3 19.0
REVENUE GROWTH
4.5%
8.3
6.8
4.4 4.5
ADJUSTED RETURN ON
CAPITAL EMPLOYED (ROCE)
15.7%
10.9
14.7 14.3
15.7
2013 2014 2015 2016
Definition Underlying cash flow is calculated
using the cash from operations and adjusting
for exceptional items.
Commentary Generating sufficient levels of
cash to ensure that the Group is able to pursue
its strategic goals. Underlying cash flow is an
indicator of the Group’s efficiency in generating
cash from the trading profits of the business.
Why we measure Track the ongoing availability
of cash for investment back into the Group.
MARKET AND GEOGRAPHICAL
DIVERSIFICATION
62.2%
72.5 69.4 68.7
62.2
2013 2014 2015 2016
Definition Revenue growth measures the change
in revenue achieved against prior year.
Commentary Revenue growth is monitored at
both consistent and actual exchange rates (see
also segmental reporting) as a measure of the
growth of the Group. The metric used by the
Group is actual exchange rates as shown above.
Why we measure Track the relative
performance of our growth.
CAPACITY UTILISATION
61.5%
54.8
61.2 61.6 61.5
2013 2014 2015 2016
Definition ROCE is defined as the underlying
trading profit divided by the capital employed
(equity plus long-term liabilities).
Commentary By delivering our strategy it is
important to increase shareholder value. Underlying
ROCE is used together with the profit measures
to monitor the efficient use of Group assets.
Why we measure Monitor value created
from investments.
SERVICE PERFORMANCE
87.2%
85.9 84.3 88.3 87.2
2013 2014 2015 2016
Definition The proportion of the largest customer
location by market and geography as a percentage
of total revenue.
Commentary An indicator for diversifying our
portfolio and reducing the relative exposure to
one segment or geographic region. In 2014/15
we have reduced our concentration on Industrial
to 62.6% of turnover.
Why we measure To track our progress to a
diversified, sustainable portfolio.
2013 2014 2015 2016
Definition Hours booked to production as a
percentage of total possible, based on running 24
hours a day 5 days a week.
Commentary Managing capacity allows us to
be responsive to customer needs by balancing
cost efficiency and flexibility of production. We
can simplify engagement with our customers
by offering a balanced portfolio of available
capacity across the globe.
Why we measure To ensure that a balance is struck
between cost efficiency and flexible production.
2013 2014 2015 2016
Definition Service performance and ease of
engagement measured as the number of times the
requested delivery date is met as a percentage of
the total orders
Commentary To build partnerships and ease
engagement it is essential to meet customer
needs and requests.
Why we measure Measure service provided to
our channels/partners
11
ANNUAL REPORT AND ACCOUNTS 2016 SCAPA GROUP PLC