Return on capital employed

(%)

Performance

Return on capital employed increased by 2.0 percentage points during the year, from 17.9% to 19.9%.

Headline operating profit increased by 10.2% from £97.5m to £107.4m, while average capital employed reduced by 0.7% to £539.6m.

Definition

Headline operating profit as a percentage of the average of opening and closing capital employed as adjusted for certain items of goodwill written off.

Capital employed is defined as net assets adjusted for net cash/(debt).

Headline earnings per share

(pence)

Performance

Headline earnings per share increased by 3.7 pence during the year, from 37.5 pence to 41.2 pence.

Headline earnings increased by 11.1% from £70.2m to £78.0m, while the average number of shares in issue remained static.

Definition

Headline earnings per share is defined in note 9 to the Group financial statements.

Return on sales

(%)

Performance

Return on sales increased by 0.7 percentage points during the year, from 16.6% to 17.3%. Headline operating profit increased by 10.2% from £97.5m to £107.4m, while revenue increased by 5.4% from £587.8m to £619.6m.

Definition

Headline operating profit as a percentage of revenue.

Accident frequency

(number)

Performance

Bodycote works tirelessly to reduce workplace accidents and is committed to providing a safe environment for everyone who works at or visits our locations. The accident frequency rate has increased to 1.9 in the year (2012: 1.5). We believe the primary reason for this is the emphasis we have placed on the reporting of incidents.

Definition

Accident frequency is defined as the number of lost time accidents x 200,000 hours (approximately 100 man years), divided by the total number of employee hours worked.

Carbon footprint

(tonne CO₂e/£m sales)

Performance

Excluding the year-on-year impact of acquisitions and at constant currency, the carbon footprint decreased by 3% from 603.4 tonnes per £m sales to 583.1 tonnes per £m sales. In total and at actual exchange rates, the carbon footprint remained in line with 2012. Acquisitions were made in the USA, which has a higher energy to carbon conversion rate than most of the other countries in which the Group operates.

Definition

Carbon footprint is defined as tonnes of CO₂ equivalent emissions divided by £m revenue. CO₂ equivalent emissions are calculated by taking electricity and gas usage in kilowatt hours and multiplying by country specific conversion factors provided by DEFRA (Department for Environment, Food & Rural Affairs).