Our performance

Underlying operating profit (before JVs and associates) has increased by 17%, reflecting increased revenues and an increase in the margin of 0.8%

Why this is important

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.

How we calculate

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.

See the consolidated income statement

What we target

Our target is to double 2016 underlying profit before tax by 2020.

Our aim is to generate operating margins of between 8 per cent and 10 per cent in line with those required to achieve our 2020 profit target of £26m.

Our performance

EPS growth was 15%

Why this is important

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.

How we calculate

EPS is calculated as underlying profit after tax divided by the weighted average number of shares in issue during the period.

See note 10 of the consolidated financial statements

What we target

Our aim is to maximise sustainable EPS growth.

Our performance

Revenue has increased by 5%, reflecting an increase in order flow, activity and steel prices

Why this is important

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.

How we calculate

This represents the year-on-year percentage change in revenue from Group operations as reported in the accounts. The effects of acquisitions and disposals will be removed from this measure. No such adjustments were made to the current or prior year revenues.

What we target

To grow revenue year-on-year in line with our strategic objectives.

Our performance

Cash conversion is slightly below the 85% target following the unwind of advance payments in the year

Why this is important

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.

How we calculate

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).

See note 24 of the consolidated financial statements

What we target

We target a conversion rate of 85 per cent as a base level of achievement, subject to future capital investment made to position the Group for further growth.

Our performance

ROCE has improved by 1.9% and continues to exceed the 10% target

Why this is important

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.

How we calculate

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.

See note 20 of the consolidated financial statements

What we target

We aim to deliver ROCE which is in excess of 10 per cent over the whole economic cycle.

Our performance

The UK order book has increased by 3% since June 2017

Why this is important

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.

How we calculate

Our UK order book shows the total value of future revenue secured by contractual agreements.

What we target

We aim to build a good quality order book which supports the achievement of our strategic targets.

Our performance

The AFR remains within the Group's target for 2018 of 0.26

Why this is important

This 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.

How we calculate

AFR is equivalent to one reportable lost-time incident resulting in more than three working days' absence per 100,000 hours worked, which equates to approximately one working lifetime.

What we target

We are committed to a target of zero injuries in the medium term.