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Financial performance

KPIs provide insight into how the Board and Executive Committee monitor the Group’s strategic and financial performance, as well as directly linking to the key measures for Executive remuneration.

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

Why we measure:
Top-line growth is a key financial measure of success.

2020 Performance:
The Group has delivered £6,8bn, down 19% organically and down 27% reported versus prior year. The decline reflects the impact of COVID-19, and a strategic reduction of our Retail exposure.

Definition:
Operating profit (before exceptional items) divided by sales.

Why we measure:
A key metric of operational efficiency, ensuring that we are leveraging our scale to translate sales growth to profit.

2020 Performance:
Operating margin at 2.4% is 160bps lower than the operating margin achieved in 2019, reflecting the disruption from COVID-19.

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

Why we measure: 
A key driver of delivering sustainable and growing earnings to shareholders.

2020 Performance:
In 2020 this decreased 60% to £129m, as profits were weighed down by the material impact of COVID-19 on the Group’s performance.

Definition:
Net cash flows from operating activities, before exceptional cash flows, less net capital expenditure and dividends paid to non-controlling interests.

Why we measure:
A key driver of the Group’s ability to fund inorganic growth and to make distributions to shareholders.

2020 Performance:
The Group delivered free cash flow (FCF) of £176m, a 17% decrease on 2019. FCF resilience is testament to the effective management of our working capital, and the inherently cash generative nature of our business model.

Definition:
Operating profit (before exceptional items) divided by the average of opening and closing capital employed, where capital employed is defined as net assets less net funds add net debt/less net funds.

Why we measure:
ROCE is a measure of the Group’s ability to drive better returns for investors on the capital we invest.

2020 Performance:
The Group’s ROCE dropped to 12%, reflecting the deterioration of our profitability.

1 2018 and 2019 are not comparable with prior years due to adoption of IFRS 16

2 For alternative performance measure, see page 176-177 of annual report.

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 2020
£m
2019
£m
2018
£m
2017
£m
2016
£m
Revenue 6,837.8 9,379.7 9,277.0 8,953.3 7,838.4
           
Operating profit before exceptional items 165.5 373.1 398.6 406.6 359.1
Operating exceptional items (257.1) 75.5 (223.7) (12.6) (81.6)
Operating (loss) / profit (91.6) 448.6 174.9 394.0 277.5
Share of profit / (loss) after tax of joint ventures and associates - 0.3 0.1 - (0.1)
(Loss) / profit before finance and tax (91.6) 448.9 175.0 394.0 277.4
Net finance costs before exceptional items (36.6) (47.1) (48.1) (25.0) (9.6)
Exceptional finance costs - - (13.9) - -
(Loss) / profit before tax (128.2) 401.8 113.0 369.0 267.8
Tax before exceptional tax (33.2) (75.6) (79.1) (96.1) (88.0)
Exceptional tax 24.2 2.5 5.5 2.7 11.5
(Loss) / profit after tax (137.2) 328.7 39.4 275.6 191.3
Non-controlling interests (2.9) (5.8) (7.0) (7.9) (6.9)
(Loss) / profit for the year (140.1) 322.9 32.4 267.7 184.4
           
Basic:          
- (Loss) / profit before tax (128.2) 401.8 113.0  369.0  267.8
- (Loss) / earnings per share (pence) (35.6)p 79.0p 7.8p  64.6p 43.2p
Adjusted (before exceptional items)          
- Profit before tax 128.9 326.3 350.6  381.6  349.4
- Earnings per share (pence) 23.6p 59.9p 63.8p  66.7p  59.6p
Dividends per share - interim paid and final proposed (pence) 6.9p 26.8p 26.8p  26.8p 23.8p
           
Consolidated statement of financial position          
Non-current assets 1,502.1 1,773.2 2,056.0  1,641.0  1,563.4
Other assets less (liabilities) excluding net (debt) / funds  (351.9) (224.7) (248.4)  (273.3) (227.4)
Capital employed 1,150.2 1,548.5 1,807.6  1,367.7 1,336.0
Net (debt) / funds  (66.5) (249.9) (445.9)  80.2 26.5
Net assets 1,083.7 1,298.6 1,361.7 1,447.9  1,362.5
           
Equity attributable to owners of the parent 1,064.4 1,278.3 1,338.4  1,427.3  1,343.9
Non-controlling interests 19.3 20.3 23.3 20.6 18.6
Total equity 1,083.7 1,298.6 1,361.7  1,447.9  1,362.5