We have defined a number of Key Performance Indicators (KPIs), both financial and non-financial, which are closely aligned with our strategy and core values.
Our performance over the years demonstrates significant and consistent progress.
Financial
Revenue growth
Definition
We target revenue growth of 10% per annum. Whether we achieve this or not can depend on market cyclicality and exchange rates.
Target achieved (and commentary)
Our progress in 2018
- Successfully increased our share of the semi-conductor manufacturing equipment market
- We expanded our product offering, both organically and through acquisition
Our plans for 2019
- Leveraging off the new products gained through acquisition
- Provide increasing support to our customers through our engineering solutions group
- Expand our distribution channels
Link to strategy
- Target accounts where we can add value
Link to core values
Speed
Customer
Focus
Link to risk
1
2
3
4
5
9
10
Revenue from Top 30 customers (%)
Definition
We expect revenue from our top 30 customers to increase as we pursue our strategy.
Target achieved (and commentary)
Our progress in 2018
- Revenue from our top 30 customers represented 52% (2017: 50%) of revenue.
Our plans for 2019
- Continue to grow our share of customers' business where we are preferred or approved suppliers.
- Expansion of our product portfolio to increase our addresable market in our existing customer base.
Link to strategy
- Vertical penetration of focus accounts
Link to core values
Flexibility
Customer
Focus
Link to risk
1
2
3
5
9
Proportion of own-designed revenue (%)
Definition
We have now achieved the 80% target we had set ourselves.
Target achieved (and commentary)
Our progress in 2018
- In 2018, revenue from our own-designed/own-manufactured products grew 22% from £127.4 million in 2017 to £155.3 million in 2018. This now represents 80% of revenue.
Our plans for 2019
- Continue to drive this metric through investment in our product development group, combined with growth from our Engineering Solutions Group.
Link to strategy
- Develop a broad range of competitive products
Link to core values
Knowledge
Link to risk
1
2
3
5
9
Adjusted diluted Earnings per share growth (%)
Definition
We target to grow this metric by a double digit percentage each year.
Target achieved (and commentary)
Our progress in 2018
- Acquired Glassman HV to expand our product offering and addressable market
- Balanced the need for additional investment in people to underpin future growth
Our plans for 2019
- Commence production of second Vietnam manufacturing facility, significantly increasing overall capacity
- Upgrade and harmonise the ERP system
Link to strategy
- Achieve operational excellence
Link to core values
Flexibility
Speed
Link to risk
1
2
3
4
5
6
7
8
9
10
Non-financial
New product families released
Definition
Not all products are equal in terms of their complexity to develop or their revenue potential. In assessing new product opportunities, we consider the potential revenue from a new product family as well as the absolute number of new product introductions. We target 30 new releases per annum.
Target achieved (and commentary)
Our progress in 2018
- We released 27 new product families in 2018 (2017: 27)
- 20 (2017: 19) of these new product families can be classified as "Green XP Power" products
Our plans for 2019
- Target 25 new product releases in 2019 with continued focus on high power products.
Link to strategy
- Develop a broad range of competitive products
Link to core values
Knowledge
Flexibility
Link to risk
2
3
9
Cultural survey score (Index out of 100)
Definition
We target to improve this score each year with the long-term aim to achieve a score of 67 which will put us in the "clearly the best" category as defined by the external consultant assisting us with the survey.
Target achieved (and commentary)
Our progress in 2018
We continue to undertake an annual employee cultural survey to identify the areas our people tell us where we can improve to drive operational excellence.
Using the results of this survey we have:
- Improved our on-boarding process
- Continued training and development for employees and managers to extract maximum benefit and provide career progression
Our plans for 2019
- Drive individual teams to come up with plans to address the opportunities identified in the cultural survey
- Continue training and development for employees and managers to extract maximum benefit and provide career progression
Link to strategy
- Achieve operational excellence
Link to core values
Knowledge
Link to risk
7
9
Lifetime co2 emission savings from "green" products (tonnes)
Definition
We have set a target to increase the lifetime CO2 emissions savings from XP "Green" Power products by at least 5% per annum.
Target achieved (and commentary)
Our progress in 2018
- Of the 27 new product families launched in 2018, 20 were ultra-high efficiency products
- Our revenues from XP "Green" Power products increased 6% to £42.1 million in 2018
- CO2 emission savings declined in 2018 due to product mix
Our plans for 2019
- We will continue to release products with class-leading efficiency
Link to strategy
- Leading our industry on environmental matters
Link to core values
Integrity
Link to risk
5
7
For more information see our
strategy section
For more information see our
risks section
For more information see
our core values section
For more information see our
sustainability section