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 historical 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||2017||2016||Why a KPI?||Performance Commentary|
|Organic constant-currency revenue growth 1||1.4%||(1.5)%||
On an organic constant-currency basis revenue improved 1.4%.
|Group headline operating profit
||Improving momentum with a return to organic growth, underpinned by operational efficiencies, and reinvestment into the businesses, partially offsetting the impact of the disposals.|
|Free cash flow before
acquisitions, dividends, and US pension payment 1
||The increase compared to 2016 was as a result of improved cash from operations (excluding the one-off US pension payment), lower capital expenditure and restructuring costs.|
|Return on invested capital 1||17%||16.7%||
||Improvements in return on invested capital are primarily driven by increased operating profit.|
|Headline earnings per share1||22.5p||22.7p||
||Marginally lower headline earnings per share resulting from the tax impact on specific adjusting items.|
|Dividend per share||11.0p||11.0p||
||The Board has held the dividend flat during 2017 as it looks to rebuild dividend cover in the
||This is believed to be an appropriate level of employee turnover.|
|Lost Time Accident Frequency3
(per 100,000 hours worked)
||Despite the focus placed on health and safety at all sites and across all levels of the Group through ‘thinkSAFE’ leading to a lower total accident frequency, there was a higher lost-time impact.|
|Tonnes CO2e per £m revenue 2,3||326||346||
||Although the Group benefited from a series of projects and environmental programmes focused on the sites identified as having the greatest environmental impact, overall CO2e increased.|