Why invest?

With a track record of revenue growth and strong margins, we deliver sustainable value for our stakeholders through our market-leading engineered products and services. Our strong balance sheet enables us to invest for future growth.

   

1. Structural and regulatory growth drivers

  • We are a leader in structural long-term growth markets, supported by favourable regulatory environments and global focus on activesafety and autonomous systems development
  • Our offering spans both physical and simulated testing across ADAS, autonomous vehicle R&D and vehicle testing
  • We are using our core technology portfolio to leverage adjacent markets including mining, defence, materials handling and agriculture
  • We have a global presence and diverse geographic end markets, including a new Asia Pacific divisional operating hub
  • The proportion of recurring revenue continues to grow as we increase our service and support offering and software sales

2. Sustainability and resilience

  • The wider focus on road safety and reduction inaccidents as well as the focus on electric vehicle and battery technology is an important long-term trend that will support continued growth
  • The resilience of our business model enabled us to continue investing in the business during the COVID-19 pandemic. While there was a short-term impact on demand, structural and regulatory drivers remain intact, demonstrated by the recent improvement in order intake
  • We actively focus on the wellbeing of our workforce through a strong health and safety culture and employee engagement and assistance
  • Our global, diversified customer base provides resilience. With direct sales and support facilities in the UK, Germany, Japan and the USA and indirect sales channels in all other key customer territories, we are well placed to deliver support where our customers need it

3. Strong margins

  • Differentiated products and strong, long‑term relationships with customers underpin strong margins
  • Continued investment in innovation to deliver differentiated products to drive strong gross margins
  • Investment in people, business systems and capacity will deliver future efficiencies and margin expansion

4. Strong balance sheet

  • Our strong balance sheet gives the financial flexibility to enable ongoing investment in organic growth and to strengthen business infrastructure for the next phase of expansion
  • With capital expenditure having peaked in 2021, free cash generation is expected to step up significantly post investment
  • Our ability to deliver strategically compelling and accretive acquisitions further supports the growth strategy

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