Nigel Trodd, Sector Chief Executive, Infrastructure Safety
Revenue % of Group
Profit % of Group
The Infrastructure Safety sector delivered strong revenue and profit growth in 2015/16. Our results benefited from good performances from both established and recently acquired businesses. Firetrace LLC was acquired in October 2015, adding fire suppression products to our global fire portfolio.
|Organic revenue growth1 (constant currency)
|Organic profit growth1 (constant currency)
|Return on Sales2
|R&D % of Revenue3
Contribution to Group
- Sector revenue and adjusted4 sector profit before finance expense are compared to the equivalent prior year figures.
- Return on Sales is defined as adjusted4 sector profit before finance expense and taxation expressed as a percentage of sector revenue.
- Sector research and development expenditure expressed as a percentage of sector revenue.
- Adjusted to remove the amortisation of acquired intangible assets and acquisition items (see note 1 to the Accounts).
The sector delivered strong revenue and profit growth in 2015/16. Revenue grew by 13% to £265m (2015: £234m) and profit rose by 12% to £56m (2015: £50m). At constant currency, organic revenue was up 6% and profit up 5%. We continue to exceed Group targets on Return on Capital Employed and cash generation.
Return on Sales remained strong at 21.2%, due primarily to successful new product launches and an effective balance between investment and cost control to maintain margins. Revenue in all major markets increased during the year, with 4% growth in the UK and 48% in Africa, Near and Middle East. In the USA we achieved 39% growth.
Our door sensors business performed well in all segments, driven by increased market demand for safety around the door and an enlarged customer base.
Our strategy of diversification, with its focus on the transportation and security market, also delivered strong growth thanks to increased demand for sensor applications based on our advanced laser technology.
Our fire business surpassed the previous year’s performance. The first full year of the Advanced Electronics acquisition went well and the company performed above expectations. Firetrace met expectations in the first six months post acquisition.
Due to increased competition, especially in China, demand for our elevator door sensors was lower and sales of our elevator displays were flat. However, there was strong growth in sales of our telephone products.
In Security, we experienced a challenging year, due primarily to currency headwinds in our two major market areas, Europe and South Africa.
1. See Note 1 to the Accounts.