Key Performance Indicators ("KPIs")

Historically we have measured a number of financial and non-financial key metrics in order to monitor our progress and assist in the achievement of our strategic plan. Following the recent disposal of our Services Segment it is the Senior Executive Teams intention to review the key performance indicators in order to ensure that we can adequately monitor and manage the progress of our strategy.

Financial
Strategic elementKPIMethod of calculationTarget Prior to the Disposal of the Services Segment2013 PerformanceFive Year RecordRead More
Manufacture SmallCommercialise SmallShareholder Return SmallRevenue from key pharmaceutical productsGlobal revenue from our top five productsTo achieve annual revenue growth of at least 10%The KPI was exceeded during the year with a growth rate of 12.6% (15.9% at constant currency) being achieved. Vetoryl and Felimazole grew particularly stronglyRevenue Key Pharmaceutical
Commercialise SmallShareholder Return SmallRevenue from specialist pet dietsGlobal revenue from the Specific brand of pet dietsTo achieve annual revenue growth of at least 6%On a reported basis, diets declined by 0.9%. However, we have seen a growth of 2.6% at constant currencyRevenue Specialist Pet Diet
Manufacture SmallCommercialise SmallShareholder Return SmallUnderlying operating margin before product development costUnderlying operating profit before product development expenditure expressed as a percentage of Group revenueTo achieve an underlying operating margin before product development costs of 10% in the medium termFurther progress towards the medium term target was made driven by the increasing proportion of revenue achieved from pharmaceutical productsUnderlying Operating Margin
Innovate SmallManufacture SmallCommercialise SmallShareholder Return SmallCash conversion rateCash generated from operations before tax and interest payments as a percentage of operating profit before amortisation of acquired intangiblesTo achieve an annual cash conversion rate of at least 100%Cash conversion achieved over 100% during 2013 due to strong performance from the Pharmaceuticals SegmentsCash Conversion Rate
Innovate SmallManufacture SmallCommercialise SmallShareholder Return SmallReturn on capital employed ("ROCE")Underlying operating profit as a percentage of average operating assets utilised. Operating assets exclude cash and cash equivalents, borrowings, tax and deferred tax balancesTo achieve a return on capital employed which exceeds the pre-tax weighted average cost of capital of the Group ("WACC")ROCE is significantly ahead of the Group's WACC although it reduced slightly in absolute terms due to the Eurovet acquisitionReturn On Capital Employed
Non-financial
Strategic elementKPIMethod of calculationTarget2013 PerformanceFive Year RecordRead More
Innovate SmallPharmaceutical product development pipelineNumber of products from the pipeline or in-licensed into at least one major territory with long term revenue potential of at least £0.5 millionOne new diet or range extension launched in the EU, two new pharmaceuticals, each launched in at least one key marketOne new diet product has been launched during the year in the EU.

Nine new pharmaceutical registrations have been achieved in to a number of territories across the EU
Pharmaceutical Product Deve
Innovate SmallManufacture SmallCommercialise SmallHealth and safety performanceLost Time Accident Frequency Rate ("LTAFR"): all accidents resulting in absence or the inability of employees to conduct the full range of their normal working activities for a period of more than three working days after the day when the incident occurred normalised per 100,000 hours workedZero preventable accidentsThere has been a reduction in the total number of accidents during the year from 10 to 5. None of these accidents have resulted in a work related fatality or disability.

More detail in relation to this can be found in the Social, Ethical and Environmental Responsibilities report
Health And Safety Performan
Innovate SmallManufacture SmallCommercialise SmallShareholder Return SmallEmployeesEmployee turnover calculated as number of leavers during the period as a percentage of the average total number of employees in the periodMoving Annual Turnover ("MAT") rate of less than 15%The MAT decreased from last year's 16.10% to 14.84%. More detail in relation to this can be found in the Social, Ethical and Environmental Responsibilities reportEmployees