Ambitious growth targets

Targeting mid to high single digit revenue growth
We are the global leader in highly attractive growth markets that have high barriers to entry and are relatively concentrated. Our served markets are benefitting from the megatrends of automation, electrification and digitalisation that are transforming industry. We aim to outgrow them through the implementation of our Growth+ strategy.

Strong operating leverage

Higher sales boost profits significantly
Our business has a high gross margin and relatively low variable costs meaning high operating leverage – higher sales boost profits significantly and quickly. As well as having high margins and relatively low fixed assets, the business has a comparatively low level of net working capital, meaning that revenue growth need not absorb significant cash.

Leading returns

Market leading returns with room for upside
Our adjusted operating profit margin was 22.9% in 2023, amongst the highest in the industrial goods & services sector. We target a return to the mid-20s over time through operational gearing, continuous improvement and sourcing and supply chain initiatives. We have an asset-light business model and our return on capital employed (ROCE) was 33.9% in 2023.

Highly cash generative

Balance sheet strength
Our group is highly cash generative – cash conversion averaged 114% over the last five years. This cash flow enables us to fund organic investments, pay a progressive annual dividend and gives us the flexibility to make strategic acquisitions. The higher cash conversion of 120.3% in 2023 is largely driven by improvements in working capital.

Disciplined capital allocation

A clear capital allocation framework
Our capital allocation priorities are: i) organic investment (new product development, innovation, new markets, internal systems); ii) our progressive dividend policy; iii) strategic investments; followed by, in the event in the future we determine we have excess cash; and iv) return of cash.

Committed to sustainability

Enabling a sustainable future
Our sustainability framework is core to everything we do and embedded in the Growth+ strategy through our ‘Enabling a Sustainable Future’ initiative. Every day we work to help customers better their own environmental performance, including through our ‘eco‑transition’ portfolio of products and services, whilst also working to improve our own.