Key Performance Indicators

Financial KPIs

Revenue measures

Strength of housing revenue is an important measure of the success of our strategy. Our emphasis on traditional housing puts us in a strong position in our markets.          

Revenue 2018Forward Sales 2018

Profit measures

We have a long track record of delivering returns that are amongst the best in the sector. Our land replacement processses and 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 disciplined growth.                                                        

Operating Margin 2018Profit Before Tax 2018

1  Stated before exceptional items and goodwill impairment. After exceptional items and goodwill impairment the figures are as follows: Housing operating margin: 30.1% (2018: 30.5%; 2017: 27.9%; 2016: 24.6%; 2015: 21.6%); Profit before tax: £1,040.8m (2018: £1,090.8m; 2017: £966.1m; 2016: £774.8m; 2015: £629.5m). 

 

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 2018Cash 2018

2  Free cash generation is defined as net cash flow before financing activities and before £13.9m of employers’ National Insurance contribution payments in respect of share based payments (2018: £46.7m; 2015-17: nil).

Return measures

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 Onaverage Capital Employed 2018Net Assets 2018

3  12 month rolling average and stated before exceptional items and goodwill impairment and includes land creditors. After exceptional items and goodwill impairment the figures are as follows: Return on average capital employed: 36.7% (2018: 41.0%; 2017: 39.8%; 2016: 30.3%; 2015: 24.8%)

Non-financial KPIs

Customer survey

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

Star Rating 2018

* 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, visitors and home owners on our sites. We regularly monitor and review our performance based on our accident rate of RIDDORs reported per 1,000 workers in our house building operations.

Number 2018

Waste generated per home sold and % recycled

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

Waste Tonnes 2019

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 2018