How we performed
Strength of housing revenue is an important measure of the success of our strategy. Our range of house types and emphasis on traditional housing puts us in a strong position in our markets.
New housing revenue (£m)
Forward sales at 31 December (£m)
We have a strong track record of delivering industry-leading returns. Our disciplined land replacement processes, cost management and efficiency programmes aim to generate superior returns which provides a platform for further investment in the Group’s resources to support our future growth.
Underlying new housing operating margin (%)*
* Stated before legacy buildings provision of £nil (2020: £75.0m) and goodwill impairment (2021: £6.2m, 2020: £4.3m). After legacy buildings provision and goodwill impairment the figures are as follows: Housing operating margin: 27.8% (2020: 25.0%; 2019: 30.1%; 2018: 30.5%; 2017: 27.9%)
Underlying profit before tax (£m)**
** Stated before legacy buildings provision of £nil (2020: £75.0m) and goodwill impairment (2021: £6.2m, 2020: £4.3m). After legacy buildings provision and goodwill impairment the figures are as follows: Profit before tax: £966.8m (2020: £783.8m; 2019: £1,040.8m; 2018: £1,090.8m; 2017: £966.1m).
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 business through the cycle is key to our success.
Free cash generation (£m)***
*** Free cash generation is defined as net cash flow before financing activities and before £nil of employers’ National Insurance contribution payments in respect of share-based payments (2020: £0.7m; 2019: £13.9m; 2018: £46.7m; 2017: £nil).
A combination of higher operating profitability and capital discipline will deliver higher levels of return on invested capital. We will continue our disciplined approach to working capital management to meet market demand.
Return on average capital employed (%)****
**** 12 month rolling average calculated on underlying operating profit and total capital employed (including land creditors). Capital employed is the Group’s net assets less cash and cash equivalents plus land payables. After legacy buildings provision and goodwill impairment the figures are as follows: Return on average capital employed: 35.6% (2020: 26.7%; 2019: 36.7%; 2018: 41.0%; 2017: 39.8%).
Net assets per share (pence)