Clear KPIs
 

We are a financially focused business.We monitor and challenge financial performance at all levels to probe the health and progress of our businesses and promote accountability. As well as profitability we use a range of financial measures at Group level. Collectively they form an integral part of building value for our shareholders on a consistent basis over the long term.

We particularly focus on 6 KPIs:

KPIs Aim Progress
    y/e 2006 y/e 2005
Operating margins Maintain and strengthen margins 12.9% 12.8%
Free cash flow Maintain strong free cash flow £154m £127m
Capital expenditure Keep capital expenditure at or below 4% of revenue 3.6% 3.7%
Return on capital employed (ROCE) Achieve steadily increasing ROCE which exceeds our cost of capital 18.5% 17.1%
Gearing - interest cover Maintain a conservative and efficient capital structure, with a relatively low level of gearing 9x 13x
Economic profit Achieve steadily increasing economic profit £89m £68m