Annual Report 2016 Report 2016 Annual
Origin Enterprises plc Annual Report 2016 Origin Enterprises plc is a leading Agri-Services Group, providing value added services, technologies and inputs that address the quality, efficiency and output requirements of primary food producers.
Supporting primary food producers in...
UK Poland Ireland
26,000 1,128 8,400 285 500 106 Customers Employees Customers Employees Customers Employees
Romania Ukraine
5,600 286 1,500 267 Customers Employees Customers Employees Strategic Report Governance Financial Statements 01
Board of Directors Board Report Directors’ Chairman’s Overview Statement Governance Corporate Report Audit Committee Report Committee Remuneration Report Nomination Committee Responsibilities of Directors’ Statement Auditors’ Report Independent Income Statement Consolidated of Statement Consolidated Income Comprehensive of Statement Consolidated 2016 Highlights Origin at a Glance Our Business Explained Chairman’s Statement Review Chief Executive’s Business Model Strategy Indicators Performance Key Risk Report Review Operational Review Financial Position Financial of Statement Consolidated Changes in Equity Flows of Cash Statement Consolidated Policies Accounting Group Statements Financial to the Group Notes Policies Accounting Company Balance Sheet Company of Changes in Statement Company Equity Flows of Cash Statement Company Financial to the Company Notes Statements Information Company Discover more: Discover originenterprises.com Governance Governance 26 28 31 32 38 42 53 Statements Financial 56 57 59 60 61 Strategic Report Report Strategic 01 02 04 05 07 08 11 12 13 18 20 62 63 64 70 104 106 107 108 109 116 €’m (4.8) 93.0 78.9 14.1 88.2 Annual Report and Accounts 2016 and Accounts plc Annual Report Origin Enterprises 21.00 60.10 Year to Year 72.9 21.00 1,458.1 2016***** 2016***** 31 July 2015
93.0 2015 2015 21.00 5.6 €’m (7.4) 72.9 67.3 65.5 21.00 44.51 Year to Year 1,521.3
31 July 2016 92.9 2014 2014 20.00 90.7 2013 2013 17.25 Operating Profit* (€’m) Profit* Operating Dividend per Share (cent) Total Group Total 44.51 1.521 2016***** 2016***** 2015 2015 60.10 1.458
2014 2014 57.51 1.415
References to ‘2016’ or ‘FY2016’ throughout this Annual Report refer to the financial year ended 31 July 2016. to the financial year refer this Annual Report to ‘2016’ or ‘FY2016’ throughout References Dividend per share includes an interim dividend paid of €0.0315 per share and a proposed final dividend of €0.1785 per share. and a proposed share dividend paid of €0.0315 per includes an interim Dividend per share Before amortisation of non-ERP intangible assets and exceptional items. assets and exceptional amortisation of non-ERP intangible Before items. exceptional assets and before amortisation of non-ERP intangible before and tax interest after Profit (2016: €3.1 million, 2015: €10.2 million) and tax deferred assets, net of related amortisation of non-ERP intangible Before 2015: €12.0 million credit). (2016: €4.7 million credit, net of tax items, exceptional 2013 2013 52.11 1.418
EPS*** (cent) Adjusted DilutedAdjusted ***** * ** *** **** Finance expense, net expense, Finance tax* before Profit (cent)**** Dividend per share Group Revenue (€’bn) Revenue Group Associates and joint venture** and joint Associates profit* operating Group Total EPS*** (cent) diluted Adjusted Group revenue Group – 2016 Highlights 2016 Strategic Report Strategic Group operating profit* operating Group Agri-Services Strategic Report Origin at a Glance Origin is an international Agri-Service Group with operations in Ireland, the UK, Poland,
Romania and Ukraine. IRL
Origin is listed on the ESM and AIM markets of UK the Irish and London Stock Exchanges respectively, is headquartered in Dublin, Ireland and has Group revenues of over €1.5 billion.
The Group supports the primary sectors of the food industry through two business channels.
Business-to-Business Integrated Agronomy Agri-Inputs On-Farm Services
Business-to-Business Agri-Inputs Integrated Agronomy and On-Farm Services provides procurement and supply chain provides agronomy advice, services and inputs solutions to the Irish and UK primary food directly to arable, fruit and vegetable growers production sectors covering the macro inputs in the UK, Poland, Romania and Ukraine. Our that drive on-farm efficiency i.e. animal feed customised solutions ensure the delivery of ingredients and prescription blended fertilisers. crop production systems that adhere to the In addition Origin is the market leader in service highest safety, quality, environmental and and inputs provision to the professional sports sustainability standards. turf, landscaping and amenity sectors in the UK.
Find out more about our business model and strategy on pages 8 and 11
Revenue & EBIT by Geography 22% 33% Ireland/UK Central & Eastern Revenue EBIT Europe
67% 78%
Revenue & EBIT by Customer Channel 41% Integrated Agronomy and On-Farm Services 40% Business-to-Business Revenue EBIT
59% 60%
02 Origin Enterprises plc Annual Report and Accounts 2016 Where we operate: Strategic Report
Ireland (‘IRL’) Central & & UK Eastern Europe Agrii (UK) Agrii (Poland) Goulding (Ireland) Agroscope (Ukraine) Origin Fertilisers (UK) Comfert (Romania) Origin Northern Ireland (UK) Redoxim (Romania) PB Kent (UK) Rigby Taylor (UK)
R&H Hall Trading (Ireland and UK) Governance
Poland
Ukraine Financial Statements
Romania
About Us:
5 Countries Served 100 Distribution Points
600 Sales Force 77 Retail Units
Direct Farm Input Formulation 11.8m Ha Customer Footprint 24 & Production Facilities
42,000 Customers 78 Demonstration Farms
Average Number Trial Units 2,072 of Employees 59,000
Origin Enterprises plc Annual Report and Accounts 2016 03 Strategic Report Our Business Explained – Agronomy is the combination of science and practical farming expertise to enable growers to optimise the productivity of crops, whilst caring for the consumer, the soil and the wider environment.
Agronomy Business-to-Business Agri-Inputs Our agronomists are specialist plant and soil scientists, We provide procurement and supply chain along with being trusted professional advisors. solutions to the Irish and UK primary food They work directly with farmers and the agricultural production sectors covering the macro inputs that community to provide innovative farm practices drive on-farm efficiency i.e. animal feed ingredients and technologies that increase farm yields, protect and prescription blended fertilisers. In addition Origin crops and the environment. Our agronomy business is the market leader in advisory, service and inputs operates in the UK, Poland, Romania and Ukraine. provision to the professional sports turf, landscaping and amenity sectors in the UK. Our innovative approach represents a fully integrated service provision of on-farm agronomy advice. We cover establishment, prescription formulation and application, cultivation systems, soil health and field We operate a continuous programme of innovation and product inspections, varietal selection and nutrition, decision support systems development aimed at improving nutrient efficiency and farmer along with the supply of seed, crop protection products and fertilisers to returns on this key input. ensure high performing marketable crops which adhere to the highest levels of safety, quality, sustainability and environmental requirements. By blending different combinations of the major nutrients contained in fertiliser we can tailor specific products to particular farm production Our approach to integrated agronomy comprises: systems and soil types. The Group has a wide nutrition offering and related services with a strong presence in the UK through its Origin Fertiliser brand and in Step 1 Ireland under the Goulding brand.
Research and Analysis Origin’s feed business plays a vital role in the Irish food supply chain as the leading provider of quality and safe raw materials to the animal >> We invest in leading edge research to develop unique growing feed manufacturing industry. Rigorous systems of traceability and systems to maximise crop productivity on a sustainable basis. comprehensive supply chain protocols ensure the continuous supply >> Our trial teams manage circa 59,000 replicated trial units. of safe feed raw materials. >> We develop strategic partnerships with the leading global seed breeders, manufacturers of crop protection and nutrition input Origin is the leading service provider to the professional sports turf, applications, as well as providers of decision support technologies. landscaping and amenity sectors in the UK. A system of continuous >> Farms are visited regularly throughout the growing season. product development and improvement supported by leading >> Crops are closely inspected and monitored for health and independent research collaborations, positions the Group’s amenity development. business to the forefront of the industry. Origin Amenity incorporates >> Soil and tissue analysis is conducted to verify deficiencies and the businesses of PB Kent, Rigby Taylor and Headland Amenity. identify anomalies. Headland Amenity was acquired during the year ended 31 July 2016.
Step 2 Insight into Business-to-Business Prescription Development – Innovation >> Agronomists advise across all components of crop and field management. The Group continues to be the leader in innovative branded >> Input programmes are recommended for the achievement products across Ireland and the UK. Following extensive on-farm of yield and quality targets. research, our fertiliser businesses identify the major needs of >> Environmental stewardship and compliance requirements farmers and design products around these needs. For the arable are assured. sector, we have increased our offering of micronutrient fertiliser >> Computerised treatment plans are communicated to farmers. coatings to give farmers the option of applying the full range of elements on their fertiliser at sowing. We have also introduced an exciting new range of selenium fertilisers for use on livestock farms. As our farmers aim to exploit their competitive advantage Step 3 of production from grass based systems, these new products Application and Delivery provide a convenient ‘labour free’ and cheap method of meeting the selenium requirements of grazing animals. >> Agronomists advise on the precise timing of applications to achieve maximum results. >> Seed, fertiliser and crop protection technologies are delivered to farms from our local distribution centres through same/next day service. >> Crops continue to be monitored through to harvest.
04 Origin Enterprises plc Annual Report and Accounts 2016 Strategic Report Strategic Report Chairman’s Statement – I am pleased to present my first Annual Report as Chairman of Origin since my appointment to the Board in October 2015. Governance
As a Group our vision is to remain a recognised Directors as they bring valuable experience and leader in the provision of integrated agronomy continuity to the Board. Each of these Directors solutions and sustainable agricultural technologies. brings a wealth of knowledge, expertise, independence of mind and a willingness to Financial Performance challenge in the Board discussions. I would like 2016 was a challenging year for the business. to thank the Directors for their commitment and This was largely driven by unseasonal weather contribution during the year and I look forward conditions across northern Europe along with to continuing to work with them for the benefit weak farm sentiment, resulting in a decrease of the Group in the years ahead. in total Group operating profit of 21.6 per cent, Financial Statements delivering an adjusted diluted earnings per share Corporate Governance of 44.51 cent. The Board is recommending a final A key objective of the Board is to promote dividend of 17.85 cent per ordinary share which excellence in governance practices to facilitate brings the total dividend per ordinary share for the effective stewardship and long term success the year ended 31 July 2016 to 21.0 cent which of the Group. Details of our approach are set is equal to the previous year’s annual dividend. out in the Corporate Governance Statement on pages 32 to 37. During 2016 we continued our strategic acquisitions programme, with the acquisition Our People of the Kazgod Group in Poland along with The Group’s success would not be possible Comfert and Redoxim in Romania, with total without the dedication and commitment of our acquisition expenditure of €73.6 million. These people. We are fortunate to have talented and acquisitions delivered a strong performance motivated management teams supported by for the year and have strengthened our farm skillful and enthusiastic colleagues throughout services footprint in Central and Eastern Europe. the Group. On behalf of the Board, I would like Their integration is now significantly progressed. to express my appreciation for the efforts of all employees during the year and I look forward to Details of our financial performance are set out their ongoing contributions in the years ahead. in our Financial Review on pages 20 to 23. Outlook Board While the outlook for the sector remains There were a significant number of changes subdued we are confident of building on our to the Board during the year. Following the strengths during 2017. disposal by ARYZTA AG of its entire 68.1 per cent shareholding in Origin, Owen Killian and Patrick McEniff retired on 23 October 2015 as Non- I would like to thank you, our shareholders, Executive Chairman and Non-Executive Director for your continued support. Rose Hynes respectively. They made significant contributions Non-Executive Chairman to the Group since the establishment of Origin in 2006. On behalf of the Board, I would like to express our thanks to Owen and Patrick.
I would like to welcome Kate Allum, Gary Britton and Christopher Richards who joined the Board as Non-Executive Directors on 1 October 2015. Rose Hynes I am also delighted to have Hugh McCutcheon Non-Executive Chairman and Rose McHugh remain as Non-Executive 27 September 2016
Governance Highlights Leadership: Accountability: Shareholders: The Board, which comprises three Executive The Board has overall responsibility for The Board attaches great importance to Directors and six Non-Executive Directors, maintaining and assessing the Group’s risk maintaining strong relationships with all directs, develops and oversees implementation management and internal control procedures. shareholders who are kept informed of of the Group’s strategy and monitors operating The Risk Committee was established during significant Company developments. Following performance. Four new Non-Executive Directors the financial year, with this Committee now the recent change in our shareholder profile, were appointed to the Board in October 2015 working closely with the Audit Committee. the Company held its first Capital Markets and the Nomination Committee was established. Day in London in May 2016.
Effectiveness: Remuneration: The Board maintains a programme of agenda Executive remuneration policy is monitored items to ensure all matters reserved for it are to ensure it is correctly aligned with the considered at the appropriate time. The Board Group’s strategy, targets and performance. undertook its first formal evaluation, led by the A detailed review of the remuneration policy Chairman during the year. was performed in 2016.
Origin Enterprises plc Annual Report and Accounts 2016 05 Strategic Report Insights into UK Agronomy – Increasing Yields and Quality Agrii UK combines excellence and innovation with the latest research and development to ensure our customers can meet today’s farming challenges with knowledge and confidence.
Case Study R&D Facilities – UK Agrii’s Best of British Wheat Initiative was undertaken with a leading bread making variety, Skyfall, at the Kent based Technology Centres Demonstration iFarm in 2015. The objective of this initiative 5 was to achieve a 13 tonnes per hectare (‘t/Ha’) yield with a Trial units across the UK 13 per cent protein content (which compares to the average 55,000 representing all regions and crops yield from Skyfall official UK variety trials of 11.8 t/Ha at 11.5 per cent protein content in the same season). 460 Replicated trials nationally This trial initiative involved 63 separate treatments replicated across Demonstration iFarms: 169 units designed to explore how to make the most of the variety’s putting R&D into practice yield and quality potential with the best fungicide, nitrogen and trace 28 element programme. Trial Learnings and Results >> Crop protection products (SDHIs and Bixafen) delivered up to 1.0 t/Ha advantage over untreated soil. >> Nitrogen – minimum application of 260 kg/Ha achieved 14.5 t/Ha and 13.3 per cent protein. >> Nitrogen – application up to 360 kg/Ha achieved no significant increase in yield and 14.4 per cent protein. >> Well formulated micronutrients applied in the spray programme increased the yield by 0.21 t/Ha and 0.5 per cent in protein. >> For a relatively low outlay, the micronutrient programme delivered a margin over input cost of £85 per hectare. >> The trial results were used to inform the agronomy programme at John Boyd Farms during the 2015 growing season with impressive commercial results. Not only did the farm achieve the 13 t/Ha yield mark at proteins ranging from 13.5-14.5 per cent but two fields averaged 14.5 t/Ha.
“ We’ve always been pretty good at growing milling wheat. With valuable intelligence from the Agrii trials alongside it, Skyfall has proved to be a Rolls Royce of a crop for us, earning us a handsome margin at a very reasonable cost/tonne and even impressing my father who rates it at the pinnacle of his long wheat-growing experience.” iFarms Mark Boyd (who runs the 1,400 Ha business with his father William). Technology centres
Market Analysis
Opportunity identified Market penetration Total Farm Units (No.) 187,000 Access Vehicle Agrii Total Cropping Area 4.3m Ha Agrii Customers’ Farming Footprint 1.4m Ha % of Farm Units > 50 Ha 88% Agrii Customers’ Principal Farm Size 100 – 2,000 Ha Average Wheat Yield/Ha 8.0 t Agrii advised Beal Farm achieved 16.52 t/Ha using Dickens (an Agrii a world wheat yield record (2015) branded Master Seeds product) Grain and Oil Seeds Production 24.5m t Origin Market Positioning – No. 1
06 Origin Enterprises plc Annual Report and Accounts 2016 Strategic Report Strategic Report Chief Executive’s Review – Origin Enterprises has delivered a solid operational and financial performance against the backdrop of a challenging planning and operating environment Governance for primary food producers in 2016.
Highly adverse and unseasonal weather Our Businesses conditions, combined with weak farm Agri-Services had a challenging year. sentiment, drove a highly competitive trading Underlying revenue decreased 3.7 per cent environment which negatively impacted the principally reflecting the impact of lower input Group’s profitability and returns. Overall prices and crop marketing volumes. Underlying performance has benefited from an excellent service revenue and input volumes increased
result from the Group’s Central and Eastern 0.1 per cent in the period, reflecting a 3.2 per Financial Statements European farm services businesses acquired cent reduction in Ireland and the UK and a in 2016, together with maintaining a group- 12.2 per cent increase in Central and Eastern wide operational focus on strategic cost control, Europe. Operating margin was 100 basis points business integration and cash flow management. lower, largely reflecting the impact of unseasonal This focus will continue in 2017. weather and weaker primary producer returns.
We remain committed to expanding Origin’s A comprehensive review of Business Operations farm services footprint and will continue to is set out in the Operational Review on pages 18 prioritise investment in strategic acquisitions and 19. as well as in the further development of the Tom O’Mahony Group’s crop management systems and Chief Executive Officer yield technology transfer platforms. People Origin’s strength lies in its people. The quality of people in our organisation is exceptional and Financial and Operating Highlights represents the cornerstone of our business. To all >> Solid results in line with market our employees I would like to thank you for your expectations, against a highly total dedication and commitment to the Group challenging trading environment. and I look forward to working with you all in the >> Strong performance from Central and coming year. Eastern European farm services businesses acquired in 2016, with integration progressing to plan. Outlook Notwithstanding the fact that sector sentiment >> Good volume recovery in Q4 following remains subdued reflecting the current pressures weak Q3. on farm incomes, the Group is well positioned >> Agrii brand launched in Poland. to respond to present market conditions and >> Continued track record of robust cash to benefit from a sustained improvement in generation, with net cash of €3.1 million primary producer returns. at year end. >> Adjusted diluted earnings per share of 44.51 cent, a decrease of 25.9 per cent. >> Full year dividend maintained at 21.0 cent per share.
Tom O’Mahony Chief Executive Officer 27 September 2016
Origin Enterprises plc Annual Report and Accounts 2016 07 Strategic Report Business Model – Our vision is to remain a recognised leader in the provision of integrated agronomy solutions and sustainable agricultural technologies.
What we stand for > What we do >
Innovation and technology transfer Agri-Services comprises integrated agronomy and on-farm … are at the core of our business services and business-to-business agri-inputs. These businesses provide customised solutions that address the Information efficiency, quality and output requirements of primary food … is the cornerstone of successful farming producers in Ireland, the UK, Poland, Romania and Ukraine.
Growth … is what we strive for as an organisation How we deliver > People … are key to our business Business-to-Business Integrated Agronomy Agri-Inputs and On-Farm Services Provides procurement and supply Provides agronomy advice, services chain solutions to the Irish and UK and inputs directly to arable, fruit primary food production sectors and vegetable growers in the UK, Our vision is enabled through: covering the macro inputs that Poland, Romania and Ukraine. Our • Strategically located and well invested infrastructure drive on-farm efficiency i.e. animal customised solutions ensure the feed ingredients and prescription delivery of crop production systems • Highly skilled people blended fertilisers. In addition that adhere to the highest safety, • Expertise and innovation excellence Origin is the market leader in quality, environmental and advisory, service and inputs sustainability standards. • Technological innovation provision to the professional • Excellent supply chain management sports turf, landscaping and • Strong balance sheet amenity sectors in the UK. • Focused cash generation Supported by: • Research and • Centralised functional development expertise: • Demonstration iFarms ––Finance • Technology ––Information Technology • Distribution and logistics ––Treasury ––Legal
08 Origin Enterprises plc Annual Report and Accounts 2016 Strategic Report
Our business model drives a profitable and cash generative business. Governance Financial Statements
How we create value >
Capability Sets
Benchmarking and Return Evidencing Value Add on Investment Analysis
Yield Enhancement and Guiding On-Farm Decision Making Knowledge Transfer
Solution Development Prescription Creation and Customisation and Fulfillment
Supply Chain Risk Management and B2B Agri-Inputs Procurement Planning
Crop Science and Coordinated Applications Research Growing Systems and Localisation
Specialist Route-to-Market Strategic Alliances with Service, Integrated Agronomy and On-Farm Services and On-Farm Agronomy Integrated Input and Technology Providers
Capability Sets Compliment Our Delivery Channels
Origin Enterprises plc Annual Report and Accounts 2016 09 Strategic Report Insights into Polish Agronomy – Delivering for the Primary Producer through Research and Development Agrii provides agronomy advice and solutions to primary producers throughout Poland. The business invests in research projects and conducts a variety of trials which support the agronomy service.
Trial Learnings and Results Case Study >> Balcyny is located in the north east of Poland with sandy clay In collaboration with the University of Warmia and soil and normally experiences high levels of frost. For the 2014/15 Mazury, Olsztyn, Agrii conducted research on fertiliser growing season similar yields and quality were achieved using application methods. The objective of this research the ABS P-69 and traditional NPK fertiliser applications. was to encourage farmers to change their approach >> Winna Góra is located in west central Poland with sandy soil and normally experiences low rainfall and milder winters in comparison to fertiliser application targeted at improving efficiency to the north east. For the 2014/15 growing season marginally higher and reducing production costs. yields were achieved using the ABS P-69 application in comparison to traditional NPK fertiliser applications. This trial initiative used winter wheat and was undertaken in two >> In both research locations ABS P-69 is shown to reduce input costs locations, Balcyny and Winna Góra. It was replicated in four separate units by €26 per Ha without sacrificing yields or grain quality. over two years. An NPK coated fertiliser was used with a formula P-Reserve (ABS P-69) which helps to protect phosphorous against binding within the soil thereby ensuring plants absorb more phosphorus through their root “ Farmers involved in plant production are less interested in system. The product application involved reducing the input of nitrogen presentations about new products which show exciting yield by 33 per cent, phosphorus by 10 per cent and potash by 50 per cent performance on graphs. They are more focused on the economic along with increasing the input of magnesium, sodium and sulphur. side, i.e. how much money you can save in the production process. They should not only be focused on traditional methods like fertilisers, but should also be open to new solutions and be willing to implement new technologies, which cost less, and help to produce the same or similar yields as proven in these research results.” Our Branded Products – Poland Bogdan Dubis (PH.D.) University of Warmia and Mazury, Olsztyn
Market Analysis
Opportunity identified Market penetration Total Farm Units (No.) 1,507,000 Access Vehicle Agrii Total Cropping Area 10.8m Ha Agrii Customers’ Farming Footprint 3.0m Ha % of Farm Units > 50 Ha 30% Agrii Customers’ Principal Farm Size 100 – 1,000 Ha Average Wheat Yield/Ha 4.0 t Agrii Recognised Brands Include FoliQ Dalgety Seeds Grain and Oil Seeds Production 32.0m t Origin Market Positioning – No. 2
10 Origin Enterprises plc Annual Report and Accounts 2016 Strategic Report Strategic Report Strategy – Our strategy is to maintain a sustainable business which creates value for all our stakeholders. We will achieve this through focusing on our strategic priorities set out below. Governance
Strategic Priorities Detail 2016 Progress The Future
Sustainable In advancing the Group’s strategic The Group achieved positive The Group will continue to target goal of sustainable growth, we operating cash flows of €15.6 million growth both organically and through growth aim to minimise the financial during the year, with a year end acquisitions, while maintaining risk to the Group, thereby focusing net cash balance of €3.1 million a robust balance sheet. on generating the greatest value and committed banking facilities of
for our shareholders. €430 million. The weighted average Financial Statements debt maturity in 2016 is 4.28 years. Build on core As a business, we focus on constantly The Group hired a number of The Group will continue to focus improving our systems, processes specialists in Central and Eastern on opportunities to build and/or competencies and capabilities, developing and Europe (‘CEE’) to ensure the core transfer core competencies during empowering entrepreneurial teams, competencies in our business were 2017 and beyond. thereby continuously building on our transferred to our newly acquired core competencies which support operations. The Group continued the services and products we offer to build on its core competencies and supply. during the year through investment in infrastructure, training and technologies. Strong cash The Group aims to convert earnings The Group continued its strong Our aim is to continue our strong to cash in an efficient manner performance of cash conversion record of cash generation and conversion such that resources are available with cash flows from operating conversion. to fund commercial opportunities activities of €15.6 million during and acquisitions, pay dividends the financial year. and service debt.
Selective acquisitions The Group has recently expanded The Group invested €73.6 million The Group will continue to with the acquisition of businesses in new acquisitions in 2016, which monitor potential acquisition and and business in CEE. These acquisitions provide contributed €161.9 million to business expansion opportunities expansion an important geographic extension revenue and €10.9 million to and will evaluate each opportunity and build upon the Group’s existing operating profit in the period. based on its strategic importance, platform. The Group aims to The integration of these acquisitions capital requirements and expected further develop our businesses has been significantly progressed in financial returns. in all markets in which we operate the year. in the coming years along with continuing to pursue selective acquisitions. Deliver long term In pursuing our strategic objectives, The Group allocated capital to Our aim is to continue to identify we will do so in a financially existing businesses and acquisitions innovative crop technologies to shareholder value disciplined manner focusing on with the focus of driving shareholder develop our existing business and organic growth in our existing value along with prioritising dividend, to identify suitable acquisitions businesses along with selective maintaining a 21.0 cent per share along with maintaining dividend acquisitions so as to maximise payout. payments at an appropriate shareholder value over the long term. level taking account of the Group’s financial performance, all targeted at delivering long term shareholder value.
Origin Enterprises plc Annual Report and Accounts 2016 11 Strategic Report Key Performance Indicators – Origin employs financial and non financial Key Performance Indicators (‘KPIs’) which benchmark progress towards our strategic goals.
KPI Definition Performance The Future
Measures the number of agronomists Our target is to remain adequately Number of and sales representatives available resourced with skilled agronomists agronomists to customers to ensure that the and sales representatives who can and sales appropriate mix of experience and meet our customers’ needs. representatives expertise is available.
Measures the number of customers We aim to increase market share Number to which Origin provides services in the coming year, and as a result of customers during the financial year. increase the number of customers to whom we provide services.