Financial KPIs

Revenue measures

Strength of revenue is an important measure of the success of our business plan. Our emphasis on traditional housing puts us in a strong position to maximise sales.

RevenueForward Sales

Profit measures

Our margin has historically been one of the best in the sector and our land replacement and cost management and efficiency programmes have been undertaken to maintain this position.

Operating MarginProfit Before Tax

1  Stated before exceptional items and goodwill impairment. After exceptional items and goodwill impairment the figures are as follows: Operating margin: 24.6% (2015: 21.6%; 2014: 18.1%; 2013: 16.3%; 2012: 12.7%); Profit before tax: £774.8m (2015: £629.5m; 2014: £467.0m; 2013: £337.1m; 2012: £218.2m).

2  2012 comparatives restated for IAS 19 Employee Benefits (revised).

Cash and cash flow measures

Cash and free cash generation are used to measure balance sheet strength and liquidity. Ensuring we have an appropriate capital structure to support our strategy is a key to our success.

Free Cash GenerationCash

3  Free cash generation is defined as net cash flow before financing activities.

Return measures

A combination of revenue and margin improvement will deliver growth in return on invested capital. We will continue our disciplined approach to working capital management.

Return On AverageNet Assets

4  Stated before exceptional items and goodwill impairment. After exceptional items and goodwill impairment the figures are as follows: Return on average capital employed: 39.0% (2015: 31.7%; 2014: 24.2%; 2013: 18.0%; 2012: 12.0%).

5  2012 comparatives restated for IAS 19 Employee Benefits (revised).


Non-financial KPIs

Customer survey

We participate in the Home Builders Federation/NHBC National New Homes Customer Satisfaction Survey* to help improve our overall service and the quality of our homes.

Star Rating

* Questionnaires returned for homes sold from October to September each year. Star rating out of 5.

The Reportable Injuries Disease and Dangerous Occurrences Regulations

Our priority is the health and safety of our workforce and visitors. We regularly monitor and review our performance based on our accident rate of RIDDORs reported per 1,000 workers.

Riddor

Waste generated per home sold and % recycled

To monitor our operational and environmental efficiency, we collect data on the amount of waste we generate and recycle for each home we sell.

Waste Generated

Landbank

Land is our key raw material and we monitor the amount of land we control with planning permission to ensure that we have continuity of supply.

Plots