|KPI||Our performance||Why this is important||How we calculate||What we target|
|Underlying operating profit and margin||£9.0m (at 4.5%)|
Operating profit has increased by 18%, reflecting an increase in the margin from 3.3% to 4.5%.
|This is the principal measure used to assess the success of the Group's UK strategy.|
We are focused on driving growth in operating profit in order to drive higher and sustainable returns for our investors.
|Underlying operating profit is defined as operating profit before other items and before the results of JVs and associates (principally the Indian joint venture).|
Underlying operating margin is calculated as underlying operating profit expressed as a percentage of revenue.
|Our aim is to restore underlying operating margins to 5 to 6 per cent in FY16 and to generate steady margin improvement in FY17 and beyond.|
In the medium term, as efficiencies and pricing offset inflation over time, we expect operating profit to grow at a faster rate than revenue.
|Underlying basic earnings per share (EPS)||2.31p|
EPS growth was 163%.
|EPS is one of the key metrics in measuring shareholder value and a performance condition of the Group's performance share plan (PSP).|
The measure reflects all aspects of the income statement including the performance of India and the management of the Group's tax rate.
|EPS is calculated as underlying profit after tax divided by the weighted average number of shares in issue during the period.||Our aim is to maximise sustainable EPS growth.|
|Operating cash conversion||107%*|
Cash conversion exceeds the Group's targets (*after adjusting for the sale of the Group's investment property).
|Cash is critical for providing the financial resources to develop the Group's business and to provide adequate working capital to operate smoothly.|
This measures how successful we are in converting profit to cash through management of working capital and capital expenditure.
|Operating cash conversion is defined as cash flow generated from continuing operations after capital expenditure (before interest and tax) expressed as a percentage of underlying operating profit.||We target a conversion rate of 85 per cent as a base level of achievement, subject to future capital investment made to position the Group for further growth.|
|Return on capital employed (ROCE)||6.1%|
ROCE has improved from 3.3%.
|ROCE measures the return generated on the capital we have invested in the business and reflects our ability to add shareholder value over the long term.|
We have an asset-intensive business model and ROCE reflects how productively we deploy those capital resources.
|ROCE is calculated as underlying operating profit plus share of post-tax results from JVs and associates divided by the average of opening and closing capital employed.|
Capital employed is defined as shareholders' equity after adding back retirement benefit obligations (net of tax), acquired intangible assets and net funds.
|We aim to deliver ROCE which is in excess of 10 per cent over the whole economic cycle.|
The order book has increased by 5% since November 2014.
|The order book is a key part of our focus on building long-term recurring revenue. It is an important measure of our success in winning new work.|
Whilst the revenue within the order book is reported externally, the margin inherent within the order book is monitored internally to provide visibility of future earnings.
|Our order book shows the total value of future revenue secured by contractual agreements.||We aim to build a growing order book in line with our strategy.|
|Accident frequency rate (AFR)||0.21|
The UK AFR has reduced from 0.57 to 0.33.
|This is an industry-standard measure of the safe operation of our business and is one of a number of health and safety measures the Group uses to monitor its activities.||AFR is equivalent to one reportable lost-time incident resulting in more than three working days' absence per 100,000 hours worked, which equates to approximately one working lifetime.||We are committed to a target of zero injuries in the medium term.|
|Revenue growth||New for FY16|
This KPI will be assessed for the first time during the year ending 31 March 2016.
|This is a key measure for the business to track our overall success in specific contract activity, our progress in increasing our market share and our ability to maintain appropriate pricing levels.||This represents the year-on-year percentage change in revenue from Group operations as reported in the accounts. The effects of acquisitions and disposals will be removed from this measure.||To grow revenue year-on-year in line with our strategic objectives.|