Key Performance Indicators
Alongside absolute profit and debt measures, the Group uses several financial key performance indicators (KPIs) to measure progress.
KPIs for 2009/10, as detailed in the Performance review of the 2009/10 Annual report, are detailed below:
|
KPI |
2008/09 |
2009/10 |
|---|---|---|
|
Revenue growth (underlying)1 |
5.0% |
1.0% |
|
Operating margin* |
5.4% |
5.6% |
|
Return on net assets (RONA)* |
14.7% |
16.8% |
|
Pre-restructuring free cash flow2 |
£35.4m |
£53.6m |
|
Debt ratio (pre-restructuring) |
2.2 times |
1.9 times |
|
Return on invested capital (ROIC3)* |
11.7% |
12.4% |
* Results are stated before restructuring items of £26.6m (2008/09: £35.4m)
1 Underlying revenue (like for like sales) excludes the impact of currency rate changes, product cateogires no longer manufactured, acquisitions, discontinued operationsand the 53rd week
2 Free cash flow is net cash from operating activities, adjusted for special pension contributions, less net capital expenditure, plus interest received. Net capital expenditure is purchase of property, plant & equipment (PPE) less grants received and proceeds from sale of PPE
3 ROIC is return on invested capital which is defined as profit from operations before restructuring items for continuing operations divided by a 13 month average invested capital (net equity adjusted to exclude retirement benefit obligations net of deferred tax, and net debt, together with accumulated goodwill previously written off)
