- Home
- Overview
- Business review
- Corporate governance
- Financial statements
- Shareholder information
Key performance indicators
Definitions
Below are the definitions of the key performance indicators:
Like for like sales growth
Like for like sales growth is determined by comparison of sales in stores that were open in both the current and the prior year. Sales from stores that have been open for less than 12 months are excluded from the comparison until their 12 month anniversary. Sales from the 12 month anniversary onwards are compared against the equivalent prior period sales within the like for like sales comparison. Stores closed in the current financial period are included up to the date of closure and the comparative period is correspondingly adjusted. Stores that have been relocated or expanded, but remain within the same local geographic market, are included within the comparison with no adjustment to either the current or comparative period. Stores that have been refurbished are also included within the comparison except for the period when the refurbishment is taking place, when those stores are excluded from the comparison both for the current year and for the comparative period. Comparisons at divisional level are made in local currency and consolidated Group comparisons are made at constant exchange rates and exclude the effect of exchange rate movements by recalculating the prior period results as if they had been generated at the weighted average exchange rate for the current period.
Net new store space growth
Net new store space growth is the percentage increase in store selling space over the prior year measured as at the year end. Store selling space is the area that is open to the consumer and excludes staff rest areas, storage areas and unused space. All stores open on the last day of the financial year are included in the calculation.
Total sales growth
Total sales growth is the annual percentage increase in sales at constant exchange rates. See Principal accounting policies (d) Revenue recognition Principal accounting policies for a definition of sales. The Group comparison is made at constant exchange rates and excludes the effect of exchange rate movements by recalculating the prior period results as if they had been generated at the weighted average exchange rate for the current period. See below for a reconciliation between the reported amounts and the growth at constant exchange rates.
Operating profit growth
Operating profit growth is the annual percentage increase in operating profit at constant exchange rates. Operating profit is the total Group sales less cost of sales and administrative expenses; plus other operating income, all at constant exchange rates. Cost of sales and administrative expenses are defined in Cost of sales and administrative expenses . See below for a reconciliation between the reported amounts and the growth at constant exchange rates.
Return on capital employed
ROCE is calculated by dividing the annual operating profit by the average monthly capital employed for that year, expressed as a percentage. The monthly values are extracted from the monthly management accounts. See above for a definition of operating profit. Capital employed includes intangible assets, property, plant and equipment, other non-current receivables, inventories, trade and other receivables; less trade and other payables, deferred income and retirement benefit obligations.
Movement in net debt
Movement in net debt is defined as the difference between net debt at the end of the period and that at the beginning of the period excluding exchange adjustments, and the net movement in equity capital (proceeds from issue of shares less purchase of own shares).
Impact of constant exchange rates
| At reported exchange rates $m |
At 2007/08 exchange rates (non-GAAP) $m |
Growth at reported exchange rates % |
Impact of exchange rate movement % |
Growth at constant exchange rates (non-GAAP) % |
|
|---|---|---|---|---|---|
| Sales: | |||||
| 2003/04 | 2,697.2 | 2,856.6 | 10.6 | (3.2) | 7.4 |
| 2004/05 | 3,004.8 | 3,075.9 | 11.4 | (3.7) | 7.7 |
| 2005/06 | 3,154.1 | 3,248.1 | 5.0 | 0.6 | 5.6 |
| 2006/07* | 3,559.2 | 3,617.1 | 12.8 | (1.4) | 11.4 |
| 2007/08 | 3,665.3 | 3,665.3 | 3.0 | (1.7) | 1.3 |
| 5 year compound annual growth | 8.4 | 6.6 | |||
| Operating profit: | |||||
| 2003/04 | 341.2 | 361.6 | 15.0 | (2.5) | 12.5 |
| 2004/05 | 395.3 | 405.1 | 15.8 | (3.8) | 12.0 |
| 2005/06 | 374.7 | 383.0 | (5.2) | (0.5) | (5.5) |
| 2006/07* | 416.2 | 421.9 | 11.1 | (0.9) | 10.2 |
| 2007/08 | 351.3 | 351.3 | (15.6) | (1.1) | (16.7) |
| 5 year compound annual growth | 3.4 | 1.8 |