Financial Framework
Our financial model is based on strong cash generation. This allows us to allocate capital to accelerate organic growth, to make high quality acquisitions and to maintain a sustainable, progressive dividend policy.
Cash generation and conservative leverage
Our objective is to deliver annual cash conversion in excess of 80%, targeting a net debt to EBITDA ratio of 1.0 to 2.0 times.
Reinvesting for organic growth
We allocate capital to support organic growth, with the focus on higher-return niches and growth markets.
Targeted acquisitions to enhance growth
Acquisitions must fit our purpose and strategy. We follow a structured approach to acquisitions based on a clear set of financial criteria, and we expect acquisitions to achieve returns above our Group WACC within a three-year timeframe.
Progressive earnings and dividend growth
We understand the importance of providing consistent and growing returns to our shareholders, and the Group's strong levels of cash generation allow us to invest in organic and inorganic growth while paying a progressive dividend. We target dividend cover of c.2.5 times underlying earnings.