Key Performance Indicators
To support the Group’s strategy and to monitor performance, the Board of Directors and the Executive Committee use a number of financial and non-financial key performance indicators (KPIs). These KPIs are selected measures which are important to the Group. Progress is assessed by comparison with the Group’s strategy, its budget for the year and historic performance. Divisional and business management use a range of further benchmarks and other KPIs as part of their planning and performance review processes. In order to measure the organic performance of the business, management further analyse the headline KPIs to exclude the impact of acquisitions and foreign exchange.
The KPIs are selected and reviewed to ensure they remain important to the success of the Group. Financial and non-financial performance is reviewed in more detail in the Corporate Responsibility, Review of Operations and Group Financial Review sections of the Annual Report.
|KPI||2016||2015||Why a KPI?||Performance Commentary|
|Constant currency revenue growth 1||(1.5)%||(1.2)%||
||At constant currency revenue declined by 1.5%.
See Review of Operations on pages 24 to 33.
|Group headline operating profit
||Whilst weaker trading conditions impacted the Group, these were offset by operational efficiencies.|
|Free cash flow before acquisitions
and dividends 1
||The increase compared to 2015 was due to lower
capital expenditure in 2016.
|Return on invested capital 1,2||16.7%||16.0%||
||Return on invested capital improved as a result of lower restructuring costs and reduced average third-party working capital.|
|Headline earnings per share1||22.7p||20.8p||
||The 9.1% increase in headline earnings per share reflects lower restructuring costs and movements in foreign exchange rates.|
|Dividend per share||11.0p||11.0p||
||The Board has held the dividend flat during 2016 as it looks to rebuild dividend cover in the medium term.|
||This is believed to be an appropriate level of employee turnover.|
|Lost Time Accident Frequency5
(per 100,000 hours worked)
||The improvement in this measure reflects the focus
placed on health and safety at all sites and across all levels of the Group through ‘thinkSAFE’ (the Group’s safety performance improvement programme).
|Tonnes CO2e per £m revenue 4,5||346||364||
||This measure improved as the Group benefited from a series of projects and environmental programmes focused on the sites identified as having the greatest environmental impact.|