Financial performance

KEY PERFORMANCE INDICATORS (KPIS) ARE HOW WE MEASURE SUCCESS

These KPIs are how we measure our business performance

The Inchcape plc Board of Directors and the Group Executive Committee monitor the Group’s progress against its strategic objectives and the financial performance of the Group’s operations on a regular basis. Performance is assessed against the strategy, budgets and forecasts. We also measure the quality of revenues through the mix of revenue streams, and the flow through of value from sales revenue to trading profit.

Definition:
Consideration receivable from the sale of goods and services. It is stated net of rebates and any discounts, and excludes sales related taxes.

Achievements in 2015:
Group sales were up 2.0% on last year driven by strong top line performance in Australia, the UK, North Asia and South Asia.

Definition:
Calculated by dividing trading profit by sales.

Achievements in 2015:
The Group’s trading margin grew to 5.2% (+10bps).

Definition:
Operating profit excluding the impact of exceptional items and unallocated central costs.

Achievements in 2015:
A continued focus on cost control and accretive margin growth has meant that trading profit has grown by 2.9% year-on-year.

 

 

Definition:
Inventory, receivables, payables, and supplier related credit.

Achievements in 2015:
Working capital continued to be tightly managed throughout the year and we ended the year with £24.4m of working capital, following the normalisation of last year’s unusually low position in Russia.

Definition:
Represents the profit made after operating and interest expense excluding the impact of exceptional items and before tax is charged.

Achievements in 2015:
Profit before tax and exceptional items increased by 2.9%, to a record £312.1m.

Definition:
Operating profit adjusted for depreciation, amortisation and other non-cash items plus the change in working capital, provisions and pension contributions.

Achievements in 2015:
The Group has generated an operating cash flow of £328.4m.

 

 

Definition:
Excludes the impact of acquisitions from the date of acquisition until the 13th month of ownership and businesses that are sold or closed. It further removes the impact of retail centres that are relocated from the date of opening until the 13th month of trading in the new location. These numbers are presented in constant currency.

Achievements in 2015:
Like for like sales increased by 9.0%.

The information presented in the table below is prepared in accordance with IFRS, as in issue and effective at that year end date.

Consolidated income statement 2015
£m
2014
£m
2013
£m
2012
£m
2011
£m
Revenue 6,836.3 6,702.7 6,524.9 6,085.4 5,826.3
           
Operating profit before exceptional items 324.7 318.4 286.9 259.8 244.4
Operating exceptional items (49.5) (47.4) (8.5) 0.7 (13.4)
Operating profit 275.2 271.0 278.4 260.5 231.0
Share of profit / (loss) after tax of joint ventures and associates 0.7 (1.9) - 0.2 (3.0)
Profit before finance and tax 275.9 269.1 278.4 260.7 228.0
Net finance costs before exceptional items (13.3) (13.3) (12.3) (13.0) (13.7)
Finance costs exceptional items - - - - (10.9)
Profit before tax 262.6 255.8 266.1 247.7 203.4
Tax before exceptional tax (74.9) (68.6) (65.9) (60.8) (59.2)
Exceptional tax (4.8) - 0.6 0.5 3.6
Profit after tax 182.9 187.2 200.8 187.4 147.8
Non controlling interests (7.1) (7.6) (6.6) (5.9) (5.6)
Profit for the year 175.8 179.6 194.2 181.5 142.2
           
Basic:          
- Profit before tax 262.6 255.8 266.1 247.7 203.4
- Earnings per share (pence) 39.8p 39.7p 41.8p 39.4p 31.0p
Adjusted (before exceptional items)          
- Profit before tax 312.1 303.2 274.6 247.0 227.7
- Earnings per share (pence) 52.1p 50.2p 43.5p 39.1p 35.5p
Dividends per share - iterim paid and final proposed (pence) 20.9p 20.1p 17.4p 14.5p 11.0p
           
Consolidated statement of financial position          
Non-current assets 1,259.1 1,341.2 1,512.1 1,464.4 1,350.0
Other assets less (liabilities) excluding net funds (183.6) (233.3) (135.9) (212.2) (236.0)
  1,075.5 1,107.9 1,376.2 1,252.2 1,140.0
Net funds 166.4 210.2 123.0 276.2 243.5
Net assets 1,241.9 1,318.1 1,499.2 1,528.4 1,357.5
           
Equity attributable to owners of the parent 1,219.0 1,292.9 1,470.0 1,502.6 1,329.1
Non controlling interests 22.9 25.2 29.2 25.8 28.4
Total shareholders' equity 1,241.9 1,318.1 1,499.2 1,528.4 1,357.5