Financial highlights

Year ended 31 March 2018

Total revenue (£m)

£300.1m

+10.7%

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(*Constant currency basis: £329.5m1 )

Definition

Reported Group revenue for the year which excludes discontinued operations.

Performance

Total revenue for the year increased by £28.9m (10.7%), 8.6% on a constant currency basis, and 4.4% on a constant currency like for like basis. UK revenues increased by 10.0% and by 3.6% on a like for like basis. South African revenues rose by 11.9% on a reported basis and by 5.9% on a constant currency basis.

1. When the strategic target to grow Group revenue to £420m by 2018 was first established in the year ended 31 March 2013, the Rand/Sterling average exchange rate was 13.37, compared to the average Rand/Sterling exchange rate for the year ended 31 March 2018 of 17.32. In order to demonstrate the underlying constant currency revenue growth over that period, Group revenue for the year ended 31 March 2018 has been recalculated as if the exchange rate had remained constant, and on that basis would have been £29.4m higher at £329.5m.

Underlying operating profit (£m)

£27.4m

+15.1%

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(*Constant currency basis: £30.2m3)

Definition

Reported operating profit as adjusted for IAS 19R administrative expenses, acquisition related costs and exceptional operating items, as defined in note 8 to the financial statements.

Performance

Underlying operating profit increased by £3.6m (+15.1%) principally reflecting the continued improvement in the Group’s South African operating segment and the first time contribution of Merlyn.

3. In the year ended 31 March 2013, the Rand/Sterling average exchange rate was 13.37, compared to the average Rand/Sterling exchange rate for the year ended 31 March 2018 of 17.32. In order to demonstrate the underlying progress in profitability in constant currency terms over that period, Group underlying operating profit for the year ended 31 March 2018 has been recalculated as if the exchange rate had remained constant, and on that basis would have been £2.8m higher at £30.2m.

Dividends per share (p)

7.8p

+8.3%

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Definition 

The total of the interim dividend and the proposed final dividend for the financial year. 2014 and 2015 have been restated to reflect the 10:1 share consolidation completed on 29 September 2015.

Performance 

In line with the Board’s progressive dividend policy the dividends per share increased 8.3% to 7.8p per share from 7.2p per share.

Group revenue outside the UK (%)

44.3%

+1.5%

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(*Constant Currency basis: 49.3%2)

Definition

Revenue from the Group’s South African operating segment plus export revenue from the Group’s UK operating segment.

Performance

Group Revenue outside the UK has increased in the year to 44.3% based on another year of strong constant currency growth in South Africa alongside Rand appreciation against Sterling driving translational currency gains.

2. When the strategic target to maintain approximately 50% of Group revenue derived outside of the UK was first established in the year ended 31 March 2013, the Rand/Sterling average exchange rate was 13.37, compared to the average Rand/Sterling exchange rate for the year ended31 March 2018 of 17.32. In order to demonstrate the underlying progress over that period, the share of Group revenue derived outside of the UK for the year ended 31 March 2018 has been recalculated as if the exchange rate had remained constant, and on that basis would have been 49.3%.

Underlying return on capital employed (%)

18.0%

-40bps

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Definition

Underlying operating profit expressed as a percentage of the average of opening and closing underlying capital employed (as defined in note 8 to the financial statements).

Performance

Underlying ROCE remained above the strategic range of 12–15% over the economic cycle.

.

Underlying operating cash flow (£m)

£31.0m

+4.0%

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Definition 

Cash generated from continuing operations as adjusted for cash flows from exceptional items and pension fund deficit recovery contributions, as defined in note 8 to the financial statements.

Performance 

Underlying operating cash generation increased to £31.0m, an increase of £1.2m over the prior year, reflecting increased profitability and strong management of working capital.