Return on capital employed

Return on capital employed

Description

Return on capital employed is the ratio of underlying operating profit, adjusted for the full year benefit from acquisitions during the year, where relevant, to average net assets excluding net borrowings and taxation.

Importance to Polypipe

Indicates the efficient deployment of capital on the right initiatives and an effective indicator of Polypipe’s overall business performance.

Commentary

The Group continues to invest in its asset base to fulfil growth ambitions; yet sustained operational profitability maintains double-digit ROCE.