Return on Capital Employed (ROCE)

(%)

Performance

Return on capital employed increased by 2.6 percentage points during the year, from 16.9% to 19.5%. Headline operating profit increased by 14.4% from £85.5m to £97.9m, while average capital employed reduced by 0.8% to £501.1m.

Definition

Headline operating profit as a percentage of the monthly average capital employed. Capital employed is defined as net assets adjusted for net debt/(cash).

Headline earnings per share

(pence)

Performance

Headline earnings per share increased by 4.7 pence during the year, from 32.7 pence to 37.4 pence. Headline earnings increased by 15% from £60.8m to £70.0m, 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 (ROS)

(%)

Performance

Return on sales increased by 1.6 percentage points during the year, from 15.0% to 16.6%. Headline operating profit increased by 14.4% from £85.5m to £97.9m, while revenue increased by 3.0% from £570.7m to £587.8m.

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 was reduced to 1.5 (2011: 1.7).

Definition

Accident frequency – the number of lost time accidents × 200,000 hours (approximately 100 man years), divided by the total hours worked.

Carbon footprint

(tonne CO₂e/£m sales)

Performance

Excluding acquisitions the carbon footprint decreased by 3.5% from 629.1 tonnes per £m sales to 606.9 tonnes per £m sales. Including acquisitions the carbon footprint increased by 0.6% to 632.8 tonnes per £m sales.

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).