Control of cash flow within the Group is essential to ensuring we are able to service all liabilities as they fall due, remain within Banking facilities and covenants, and are able to service dividend payments
Commentary on performance
Conversion of operating profit to cash has been strong during the year with an overall reduction in working capital achieved despite an increase in sales. A new "Profit Sharing Scheme", based on rewarding staff based on return on gross working capital employed, was introduced during the year and focuses local decision making on cash generation.
Product and sourcing
How these measures support our strategic focus
Ensuring that the Group efficiently converts profit into cash underpins our ability to grow, by both organic and acquisitive means.