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Global expansion to become 'the most important priority' for businesses by 2030

2025-04-07 01:12:56 By

According to new research from HSBC, international earnings of the world's fastest-growing companies are predicted to surpass domestic revenue by 2030.

A survey of 1,143 global senior decision makers in companies with a revenue between £18m and $5bn found that overseas revenue currently represents less than half of their income, as reported by City AM.

However, this is expected to change in the next five years as business leaders prepare for global expansion to become a higher priority.

In an interview with City AM, Vivek Ramachandran, HSBC's head of global trade solutions, stated that companies not considering global expansion are "you're missing out on a huge opportunity".

He added: "If you've got a competitive product or service, you're missing out on an opportunity by not defining your market more globally," Ramachandran emphasised that this shift was not due to a decline in the domestic market and there was no sentiment of businesses fleeing their homeland. "It's rather we're seeing additional opportunities grow," he told City AM.

The study identified the top factors supporting international success as having the right network, capable local teams, favourable macroeconomic conditions and in-depth market knowledge. Regulatory and compliance issues made up nearly a third of the top challenges for businesses at 31 per cent.

Brand recognition ranked second at 25 per cent, with increased competition third at 24 per cent.

The latest research signals heightened global competition, which Ramachandran views as promising for consumers in the UK. "Competing in new markets increases your effectiveness in the whole market," he explained.

"So I actually think this is good news for domestic consumers."

Ramachandran remarked that expanding to new markets doesn't necessarily come at a cost to one's local customer base.

He encouraged firms on the path to growth to cast their nets wider than similar or nearby markets and to "think of the world in a much more expansive way."

On the subject of artificial intelligence (AI) in international business growth, the study uncovered that nearly two-thirds of businesses utilise AI to forward their plans for entering new overseas territories. Commenting on the power of AI, Ramachandran acknowledged the technology's efficiencies.

However, he stressed that enterprises aiming for global dominance should still maintain a "local presence."

HSBC has recently introduced its Global Expansion Assessment tool designed to support business leaders by providing an analysis of their company and identifying strengths and opportunities for expansion.

Ramachandran labelled the tool as essential for a "checklist" pre-expansion, modifying it according to companies' unique needs and the particular market they wish to penetrate.

He also advised ambitious companies keen on scaling their operations globally to be well prepared. Jason Talwar, a lecturer from Brown University who oversaw the research, commented: "Companies worldwide are pushing towards international expansion to diversify their revenues, manage risks, and access new talent."

"The global landscape is increasingly unpredictable, and the red tape around new markets can be daunting."

Very Supportive

Enterprise

Keir Starmer's three per cent defence pledge will require 'tough choices' on tax

2025-04-07 01:12:56

Keir Starmer's pledge to raise the defence budget to three per cent of GDP in the next parliament will necessitate tough tax and spending decisions, analysts have cautioned. The Prime Minister confirmed an increase in defence spending to 2.5 per cent of GDP by 2027, up from the current 2.3 per cent, with further cuts to foreign aid funding this rise, as reported by City AM. Additionally, Starmer has expressed a "clear ambition" to boost defence spending to three per cent of GDP by 2034. Ben Zaranko, associate director at the Institute for Fiscal Studies (IFS), remarked that "cuts to aid won't be enough" to achieve the target of three per cent for defence. "Getting towards three per cent of GDP will eventually mean more tough choices and sacrifices elsewhere – whether higher taxes, or cuts to other bits of government," he stated. Ruth Gregory, deputy chief UK economist at Capital Economics, noted that the government was already close to breaching its fiscal rules, limiting its flexibility. She mentioned that unless the Chancellor amends the rules, the government would need to either increase taxes or reduce spending by 0.5 per cent of GDP, which is approximately £20bn. Reportedly, another option being considered is the establishment of a European rearmament bank, which would fund increased defence spending by borrowing against capital from participating governments, thus avoiding immediate impacts on national balance sheets. At a G20 finance ministers meeting in South Africa, the Treasury confirmed that Chancellor Reeves will discuss how private finance can be utilised to boost defence spending. "National security will always be the first responsibility of this government and is the bedrock economic growth," she is set to declare. However, analysts concur that the government may find it challenging to sustainably increase defence spending through higher borrowing. Gregory highlighted that unlike infrastructure investment, defence spending does not enhance the economy's productive capacity, hence markets might be hesitant to lend. "Any increase in borrowing to fund higher defence spending could add to concerns about debt sustainability, leading to a rise in gilt yields," she stated.

Enterprise

London Heathrow announces first dividend since pandemic following ownership change

2025-04-07 01:12:56

London Heathrow Airport is set to award its new French and Saudi proprietors their first dividend in five years, following a surge in passenger numbers that hit record levels in 2024. The West London transport hub has approved a £250m payout in the coming weeks, marking the first distribution since the pre-pandemic era, as reported by City AM. The airport experienced a significant shift in ownership during 2024 when Spanish conglomerate Ferrovial divested its controlling interest to Ardian and the Saudi Public Investment Fund (PIF). This development accompanied Heathrow's announcement of its annual financial results on Wednesday. Despite facilitating a record-breaking 83.9 million passengers, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), alongside revenue, fell by 8.7% and 3.5% respectively. Heathrow attributes this downturn to decreased airport charges, which were mandated by the Civil Aviation Authority (CAA) in a 2024 regulatory verdict. Nevertheless, pre-tax profit experienced substantial growth, soaring by 30.8% to reach £917m. Amidst these financial dynamics, Heathrow emerged as a cornerstone in the Labour government’s strategy for economic expansion this January, as Rachel Reeves lent her support to the long-stalled plans for constructing a third runway at the airport. With intentions to lodge a planning application for the multi-billion-pound endeavour in the upcoming summer, Heathrow aims to boost the UK's infrastructure considerably. Thomas Woldbye, CEO of Heathrow, asserted: "Securing future economic growth means investing in the infrastructure that powers it," and pledged, "Over the next decade, we will be making the largest private investment in the UK's transport network which will modernise Heathrow and unlock new capacity for growth.

Enterprise

Hikma Pharmaceuticals' revenue grows nine per cent to £2.47bn as profit booms

2025-04-07 01:12:56

Hikma Pharmaceuticals has announced robust financial results for 2024, with a nine per cent increase in revenue to $3.13bn (£2.47bn) and a 67 per cent surge in operating profit to $612m (£483m). The company's profit attributable to shareholders nearly doubled to $359m (£284m), while earnings per share climbed by 88 per cent, as reported by City AM. The multinational pharmaceutical firm, which develops, manufactures, and markets a wide array of generic, branded, and speciality medicines, attributed much of its growth to its North American division and recent product launches. Hikma maintained its position as the seventh-largest supplier of generic medicines in the US and the third-largest provider of generic injectable products by volume. Its Injectables, Branded, and Generics divisions saw revenue growth of 10 per cent, eight per cent, and 11 per cent respectively. Despite impressive revenue figures, core operating profit only increased by two per cent to $719m (£568m), with the core margin dropping to 22.8 per cent from 24.6 per cent in 2023. While Injectables and Branded experienced core operating profit growth of five per cent and 11 per cent respectively, Generics' core operating profit fell 11 per cent due to higher royalties for Hikma's authorised generic of sodium oxybate. The acquisition of Xellia Pharmaceuticals' US finished dosage form business diversified and enhanced its injectables portfolio. The company expanded its portfolio with 89 new launches, including 12 in the US. Generics surpassed the $1bn (£790m) revenue mark for the first time, as the group saw its market share grow in sodium oxybate and its nasal spray franchise performed robustly. However, core operating profit took a hit due to increased royalties on its authorised generic of sodium oxybate. Cash flow from operating activities amounted to $564m (£446m), marking a seven per cent drop from the previous year due to a rise in trade receivables from strong year-end sales. Hikma's leverage was 1.4 times net debt to core earnings before interest, tax, depreciation, and amortisation (EBITDA) at year-end, while return on invested capital reached 16.9 per cent. The company anticipates another growth year in 2025, projecting revenue growth of four to six per cent and core operating profit between $730m (£577m) and $770m (£608m). Investment in R&D is slated to increase by 20 per cent across all three segments. Riad Mishlawi, CEO of Hikma, commented: "It's been another strong year for Hikma with double digit revenue growth, increased profits and a resilient margin.

Enterprise

HS2 'beyond saving' and now poses risk to UK's reputation, say MPs

2025-04-07 01:12:56

The HS2 project has been deemed irredeemable and should serve as a "cautionary tale" for future governments on how "not to run a major project," according to a cross-party group of MPs. The Public Accounts Committee (PAC) delivered one of its most damning reports to date, stating that it is "long past the point" where recommendations could salvage HS2's prospects, as reported by City AM. Instead, MPs are calling for a "fundamental reset" to mitigate further damage to the public finances and the UK's reputation. Geoffrey Clifton-Brown MP, chair of the committee, expressed his concerns on Friday: "We are sceptical of government's ability to successfully deliver even a curtailed scheme, one which we already know will on its face bring very poor value for money," He questioned what benefits could still be extracted for taxpayers from the debacle, highlighting risks to the UK's reputation. The Department for Transport (DfT) and HS2 Ltd have been criticised for their lack of clarity on the project's costs, completion timeline, and expected benefits. Current cost estimates are nearing £80bn, a significant increase from the initial £33bn budget set 13 years ago, with no final figure agreed upon by the DfT or HS2 Ltd. The report pinpointed the development of Euston station and flawed contracting policies as major issues. The Public Accounts Committee (PAC) has raised concerns over a £100m "bat tunnel" in Buckinghamshire, which has been criticised for doubling the cost of that section of the HS2 route and becoming emblematic of wasteful expenditure. "The fact that the Department and HS2 Ltd chose this solution leaves us concerned that the cost to the public purse was not properly front and centre to their decision making," they remarked. The PAC also highlighted the risks associated with the Euston terminus plans confirmed by Rachel Reeves in the Autumn Budget, noting the absence of a "no clear plan" for the station's delivery and the development of the surrounding area. They remain "sceptical" about the private sector's contribution despite previous ministers' optimistic projections, potentially leaving taxpayers liable for a large part of the estimated £6bn cost. This echoes London Mayor Sir Sadiq Khan's earlier warnings. The ongoing construction has already impacted local residents, businesses, and passengers with noise and pollution. With no definitive delivery model for Euston or its connection to the adjacent commercial development, the DfT's current proposals carry "huge risk." Furthermore, City AM reported allegations of misconduct this month regarding the awarding of a significant development contract at Euston to property firm Lendlease. Lendlease's UK construction division was sold to US private equity in January, and the company is currently winding down its European operations to focus on its home country, Australia. The Public Accounts Committee (PAC) has stated that even if current issues are resolved, completing the Euston section will take over a decade. HS2 is presently renegotiating its construction contracts in an attempt to curb escalating costs. In 2020, officials first tried to revise the arrangements by shifting more risk away from the project's four joint-venture contractors. The PAC cautioned at the time that HS2 Ltd would require the "right commercial skills" as it had agreed to shoulder a larger share of the costs. HS2 has since confessed that it did not "heed the warnings" and needs to return to the drawing board to negotiate more favourable terms. MPs declared on Friday that the current situation is "unacceptable to the public purse," but they remain "unconvinced that there are incentives for the contractors to make significant changes and deliver significant cost savings." They also warned of a risk that main contractors could pass any financial consequences down the supply chain to small and medium-sized enterprises, who may struggle to absorb such changes. The Public Accounts Committee (PAC) has released a report highlighting the daunting task ahead for HS2's new CEO, Mark Wild. A seasoned industry professional who previously saved Crossrail from difficulties, Wild is now faced with a lack of skills and capabilities within both the Department for Transport (DfT) and HS2 Ltd to successfully deliver the programme. The committee stated: "We are not convinced that the Department has sufficiently considered how it could bring fresh thinking to its own leadership of HS2, or whether it has the right skills and capabilities in place to lead the programme effectively and credibly." Speaking on behalf of the MPs, Clifton Browne said: "This committee has scrutinised HS2 since its inception." He continued: "Our report lays out a catalogue of warnings proceeding from that scrutiny which, if heeded, may have brought about a different outcome." Browne added: "Both DfT and HS2 Ltd. must now begin the hard work of making this project the best possible version of itself in the circumstances, while swiftly addressing the needs of those impacted by decisions made under this scheme who are still waiting for answers." Browne further criticised the Department of Transport, stating: "It is ultimately the Department of Transport that has failed to manage this enormous project and manage HS2 properly. This is likely to have wasted billions of pounds of taxpayers money in delays and overspends." He concluded: "The department as well as resetting the project must now reset itself to manage this project to a workable conclusion in line with the eventually agreed budget and timescale." A spokesperson for HS2 Ltd stated: "Mark Wild, our new chief executive, agrees with the committee's conclusion that there has been failure in the management of HS2's cost and schedule. He is taking decisive action to get the project back on track at the lowest feasible cost.

Enterprise

Rightmove boosts dividends, forecasts strong growth amid UK housing market recovery

2025-04-07 01:12:56

Rightmove has confidently increased dividends, signalling a robust outlook for 2025, despite current uncertainties surrounding the UK housing market. The leading property portal announced a 6.1p per share dividend in its latest full-year results on Friday, which represents a five percent boost, bringing the overall payout to 9.8p, as reported by City AM. In the year ending December 31, Rightmove's underlying operating profit climbed by four percent to £273.9m while revenues saw a seven percent increase to £389.9m. The company anticipates revenue growth of between eight and ten percent in 2025 as the housing market shows signs of stabilisation. Interest rates are currently at their lowest since June 2023 after the Bank of England introduced further cuts earlier this month, influencing the mortgage market and fuelling expectations of additional reductions throughout the year. Nationwide's newest figures from Friday displayed continuous UK house price growth for the sixth consecutive month, with predictions of an upsurge in purchases over the forthcoming months. CEO Johan Svanstrom remarked, "We delivered strong results, demonstrating yet again the resilience of Rightmove's business model," and highlighted the company's strategy to further digitalise the home moving market through leveraging the largest dataset of property information and insights in the UK. Rightmove also experienced "sustained" traffic growth across the year, with users spending a collective 16.4bn minutes on its online platform, marking a six percent rise. Shares recorded nearly a two percent increase in early trading sessions. Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, commented: "These are solid results from Rightmove, underlining the resilience of its business model. "Despite the uncertain housing market, 2024 results were in line with expectations and the outlook is confident, with growth set to strengthen in 2025." However, Huggins suggested that Rightmove would need to innovate to keep pace with the sector rather than just relying on significant price increases. "Innovation comes at a cost. Operating margins are no longer rising, with headcount up 14 per cent in 2024.

Enterprise

Profits fall at Drax as it warns lack of certainty is holding back clean power

2025-04-07 01:12:56

Operating profits have fallen at power company Drax despite record levels of renewable energy generation, as the company insists 2024 brought a strong performance. The London Stock Exchange-listed group which operates the UK's largest power station and source of renewables reported that operating profits fell from £908m to £850m last year, though adjusted Ebitda grew from £1bn to £1.06bn. The latter was driven by increased renewable generation and improvements in the group's biomass pellet production business. In the results, Drax CEO Will Gardiner directed some criticism at the Government, saying that investment in generation capacity and infrastructure to deliver clean power and net zero required greater policy certainty. He said: "Absent this certainty, the pace of development is likely to be insufficient to deliver what is required and, in that environment, we believe that the value of proven operational assets should increase as growing demand for power - for electrification of heating, transport, and new markets like data centres - moves ahead of supply." The comments follow Drax's signing of a renewed Contract for Difference agreement with the Government in recent weeks. Under the agreement, Drax will continue to receive public subsidies but at a lower rate. Earlier this month Energy Minister Michael Shanks warned that the use of “unabated biomass” is not a long-term solution for the UK’s energy needs. Drax has said it could invest billions at its Selby plant, and create thousands of jobs, through a bioenergy carbon capture and storage system (BECCS) which could capture 8Mt of carbon per year. Bosses said they continue to evaluate the plans for the site but that, as it set out two years ago, the Government must provide policy support to unlock investment. Elsewhere, Drax said it was focussed on pellet production growth - hoping to achieve adjusted Ebitda of more than £250m in that division by 2027. It highlighted opportunities for its use at the Selby plant and in the sustainable aviation fuel market. Mr Gardiner said: "Drax has delivered a strong operational and financial performance while supporting UK energy security. We produced over 25% more dispatchable renewable power in 2024, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain. Signing a heads of terms with the UK Government for a new low-carbon dispatchable Contract for Difference for Drax Power Station is a major milestone for the business and provides the basis on which the site continues to generate electricity for the country, especially when the wind isn't blowing, and the sun isn't shining. "This is an investment in security of supply, which provides a net saving for consumers and helps deliver the Government's Clean Power 2030 goal. It also offers a potential pathway for long-term growth for our business, including options for the development of BECCS and a data centre at Drax Power Station. "We are making good progress with our growth ambitions for flexible generation, pellet production and our international carbon removals business, Elimini. Our strong balance sheet supports returns to shareholders and the development of options for long-term growth, both in the UK and internationally."

Enterprise

DVLA turns to senior Welsh Government civil servant for its new chief executive

2025-04-07 01:12:56

A senior Welsh Government civil servant has been appointed the new chief executive of the Driver and Vehicle Licensing Agency (DVLA). Tim Moss, who is currently the Cardiff Bay administration’s chief operating officer and director of corporate services and inspectorates, will take up his new role at the agency, which is headquartered in Swansea, at the end of March. He will take over from interim chief executive Lynette Rose, who took up the role following the departure of previous permanent CEO Julie Lennard who left to take up the position of chief operating officer at the Crown Prosecution Service last November. The DVLA, which employs more than 6,000, is responsible for maintaining accurate records of more than 52 million drivers and 46 million vehicles. In its last audited accounts for 2023-24 it reported collecting and enforcing £7.9bn in vehicle excise duty for the UK Treasury. The new CEO role was advertised with an annual salary of £135,00. Mr Moss said: “I am absolutely delighted to be appointed to the role as CEO for DVLA. “I have enjoyed a number of links with DVLA over the years and seen the great work it has done on digital transformation and customer delivery which touches on the lives of nearly everyone in the UK. I am honoured to be able to join the DVLA team and help the next phase of making the UK’s roads the safest in the world and delivering excellent public services.” Before joining the Welsh Government Mr Moss was chief executive of the Intellectual Property Office. He has extensive experience managing functions including HR, finance and digital data, and has taken responsibility for several independent inspectorates focused on planning decisions and health outcomes. Heidi Alexander, Secretary of State for Transport, said: I’m delighted to confirm Tim Moss as the new CEO of DVLA. He arrives with a wealth of experience from his time at the Welsh Government and I’m looking forward to working with him as he builds on the hard work of DVLA’s previous CEO, Julie Lennard. "I’d also like to extend my thanks to Lynette Rose, who filled the role on an interim basis, and wish her the very best as she returns to her role as director of strategy, policy and communications at the end of March.”

Enterprise

Loyalty reward scheme start-up acquired by global software giant in mega deal

2025-04-07 01:12:56

A Bath tech start-up has been acquired by global software company Enigmatic Smile for an undisclosed eight-figure sum. James Courtney came up with the concept for Lux Rewards after winning a business plan competition at the University of Bath in 2015, then aged 21. His idea was to develop "the air miles of the restaurant world". The business started as a dining rewards app, connecting customers with high-end restaurants, later pivoting to partner with major banks, airlines and employee benefit platforms to offer card-linked rewards. Although Lux Rewards received early backing from the Just Eat Accelerator and local angel investors, the start-up struggled in its early years. At one point in 2019, the business was just two weeks from shutting down entirely. “I had put everything into Lux Rewards,” said Mr Courtney. “In those early days, I was literally walking into restaurants, trying to convince them to join the platform. I even worked with The Clifton Sausage to hand out free samples on the streets of Bath just to get people to download the app.” Despite "relentless efforts", growth remained elusive. One "particularly painful moment" came when Mr Courtney spent £1,000 to put on an exclusive event at a wine bar, offering free wine and tapas in a bid to win over a major Bristol accounting firm. “Only one person turned up,” he recalled. “It was the most embarrassing day of my life.” By early 2020, Mr Courtney had resigned himself to the business failing. A Crowdcube fundraise that year provided crucial funding, but the pandemic hit just as the round closed. With restaurants shut and the business burning more than £25,000 per month, Mr Courtney, with his team on furlough, moved back to his family home in Bristol. It was during this period that Lux Rewards, which was co-founded with Tom Munday and Ash Dey, pivoted away from direct consumer downloads to partnerships with businesses. The turning point came in 2021 when the company signed a major deal with Barclaycard, expanding from 1,000 users to 400,000 overnight. Deals with British Airways and Mastercard followed. “Bath and Bristol have been at the heart of Lux Rewards’ journey,” said Mr Courtney, who is now completing an Executive MBA at the University’s School of Management. “The support from the local investor community, SETsquared, and the University of Bath was crucial in getting us here. This city is an incredible place to build a business, and I’m proud to say we’ve proven that a start-up from Bath can take on the world.”

Enterprise

GB News suffers huge loss despite doubling revenue and growing audience

2025-04-07 01:12:56

Despite its revenue more than doubling and its audience continuing to grow, GB News has reported another significant loss. The TV channel, which boasts well-known presenters such as Reform UK leader Nigel Farage, recorded a pre-tax loss of £33.4m in the year to 31 May, 2024, as reported by City AM. This follows a pre-tax loss of £42.4m in the previous 12 months. According to newly-filed accounts with Companies House, the channel's revenue over the same period more than doubled from £6.6m to £15.7m. Advertising generated a revenue of £8.8m for GB News, up from £4.2m, while its digital sales rose from £2.1m to £5.7m. Sponsorship revenue grew from £127,963 to £429865, but radio revenue was cut from £131,166 to £51.243. Barb figures reveal that GB News averaged 3.1m monthly viewers in the year, up from 2.7m, while its average linear share increased from 0.45 per cent to 0.69 per cent. Across its owned and operated website and apps, GB News secured 17.9m unique views, up from 17.3m, and 72.9m page views, up from 51.9m. On Facebook and Youtube, its reach rose from 37.8m to 48m while its subscribers across all main social media platforms also increased from 2.5m to 3.9m. A statement signed off by the board said: "With television audience share up 53 per cent and radio audience share up 61 per cent year on year, audiences across linear platforms again grew strongly in the last year." "To drive this growth, the management continued to evolve the company's programming line up and adapted to the inevitable challenges faced by the group as it takes market share in a well-established market. "The company's digital operation also continued its strong growth trajectory, where both the company's owned and operated sites as well as social media remain robust. "Page views on the group's website and app increased by 41 per cent compared to May last year, whilst reach on Facebook and YouTube grew by 27 per cent with aggregate subscribers across all the major social media platforms increasing by [around] 1.4m to 3.9m subscribers. "This encouraging usage data is highly supportive of the company's stated ambition of becoming the UK's largest news channel by 2028." On its future, GB News said: "Looking ahead, the company is focused on audience growth and a continuing commitment to high quality, independent journalism for all communities within the United Kingdom. "The directors are confident about the future outlook for the company." GB News started broadcasting in 2021 and is owned by All Perspectives Ltd, a holding company backed by hedge fund millionaire Sir Paul Marshall and investment firm Legatum as well as other backers. As of the end of its financial year, the total investment All Perspectives Ltd had provided to GB News had increased from £83.8m to £117.9m. Sir Paul acquired The Spectator in September 2024 for £100m.

Enterprise

British Airways owner IAG's profits soar as share buyback announced

2025-04-07 01:12:56

IAG, the parent company of British Airways, exceeded expectations with its full-year results, as robust travel demand in the post-pandemic era continued through 2024. The airline conglomerate reported an operating profit of €4.3bn (£3.6bn), a 22 per cent increase year-on-year and surpassing the €3.7bn forecast by analysts, as reported by City AM. Revenue also exceeded predictions, rising nine per cent to €32.1bn. Following this strong performance, IAG announced a €1bn share buyback programme to be implemented over the next 12 months. IAG shares soared in 2024 as the post-pandemic boom in travel demand showed no signs of slowing down. The stock has risen more than 120 per cent over the last 12 months and increased 3.6 per cent in early deals on Friday. Its subsidiary, British Airways, which announced a massive £7bn investment programme in March, earned more than £2bn last year, significantly exceeding the £1.3bn profit made in 2023. The London-listed airline is now proposing a dividend of €0.06 (5p) per share, bringing its full-year dividend to €0.09 (7p). This means investors can expect around €435m (£359m) this year. "These results highlight the quality of our businesses and effectiveness of our strategy, underpinned by the successful execution of our transformation programme across the group," said Chief Executive Luis Gallego in a statement to markets. Gallego stated: "We are delivering world-class margins and returns, in line with the targets we set out to the market just over a year ago."