Page 5: Measuring growth
There are many measures that a company can use to measure growth. For example, it can measure it by increased market share, greater volume of sales or larger profit. Bibby Line Group uses several ways of measuring the company's growth. Each of the businesses within Bibby Line Group measures growth in a way that is relevant to the type of business. For example:
- Bibby Financial Services measures debts factored (up 24% in 2010) and growth in sales (up 25% in 2010)
- Bibby Distribution measures profit (increased by 21% in 2010) and turnover (increased by 25% in 2010)
- Garic measures turnover (increased by 36%).
At a Group level, the growth is measured in terms of its shareholder funds. The shareholder funds of any business are simply the value of what a business owns (its assets) minus what it owes (its liabilities) at any one time.
As a business grows, so too do its shareholder funds. Shareholder funds at the Bibby Line Group have been increasing for over 10 years and most recently have been growing by 15% annually (over the most recent three years).