Aim: achieve steadily increasing Group economic profit. We are focused on delivering value for our shareholders. An effective way of measuring this is to assess whether after tax returns are sufficient to cover the returns required from all our capital providers. Group economic profit allows us to assess whether the returns generated on the average capital base is sufficient to meet the return requirements of our investors (debt and equity). Positive economic profit therefore means that value has been created:
| |
2006 |
2005 |
2004 |
2003 |
2002 |
2001 |
| PBIT (normalised) |
225 |
183 |
156* |
131 |
107* |
77 |
| Avg capital (£m) |
880 |
776 |
696 |
645 |
575 |
464 |
| Tax (%) |
27.7 |
27.7 |
28.1 |
28.1 |
29.1 |
29.8 |
| WACC (est %) |
8.4 |
8.2 |
8.5 |
8.5 |
8.5 |
9.1 |
| Capital charge (£m) |
(74) |
(64) |
(59) |
(55) |
(49) |
(42) |
| Tax (£m) |
(62) |
(51) |
(44) |
(37) |
(31) |
(23) |
| Economic profit (£m) |
89 |
68 |
53 |
39 |
27 |
12 |
*excluding exceptional items