Identifying and monitoring the key indicators of success in our business is critical to inform strategic decision making.

KEY OF PRINCIPAL RISKS

  1. Economic environment
  2. Market risk
  3. Vehicle holding costs
  4. Legal compliance and the employee environment
  5. IT systems
  6. Access to capital

Financial

1 Earnings

Underlying PBT and EPS are key measures of profitability. They also are key remuneration metrics. Underlying PBT and EPS are stated excluding exceptional costs in order to better compare performance year on year.

  • Underlying PBT was £57.0m (2017 – £75.0m).
  • Underlying EPS was 34.8p (2017 – 47.3p).
  • Our target is to grow the underlying earnings and PBT of the Group. The earnings profile in the coming years will be impacted by changes to depreciation rates.
  1. Economic environment
  2. Market risk
  3. Vehicle holding costs
  4. Legal compliance and the employee environment
  5. IT systems
  6. Access to capital

We buy

We rent

We sell

2 Return on capital employed (ROCE)

In a capital intensive business ROCE is an important measure of performance. ROCE measures how efficiently the Group allocates capital to deliver returns to our shareholders.

  • ROCE was 7.5% (2017 – 10.5%).
  • We aim to maintain ROCE above our weighted average cost of capital.
  1. Economic environment
  2. Market risk
  3. Vehicle holding costs
  4. Legal compliance and the employee environment
  5. IT systems
  6. Access to capital

We buy

We rent

We sell

Operational

3 Vehicles on hire

Growing average vehicles on hire is critical to the success of our business. Placing vehicles on hire with customers at profitable rates is a critical driver of our earnings.

  • Group vehicles on hire was 83,800 (2017 – 80,800)
  • Our target is to grow vehicles on hire at profitable margins in order to maximise sustainable returns to investors.
  1. Economic environment
  2. Market risk
  3. Legal compliance and the employee environment

4 Asset management

Utilisation needs to be optimised in order to be operationally efficient but must also be balanced against the need to have fleet available to meet customer demand. Utilisation is a measure of the proportion of available fleet on hire with customers.

  • Group utilisation was 89% (2017 – 89%).
  • We aim to maintain utilisation at current levels or above.
  1. Economic environment
  2. Market risk
  3. Vehicle holding costs
  4. Legal compliance and the employee environment
  5. Access to capital

We buy

We rent

We sell

5 Staff retention

Attracting, retaining and developing the right people is key to the successful delivery of our strategy. Staff turnover is a key measure for monitoring performance in this area.

  • Group staff turnover was 20% (2017 – 20%).
  • We aim to manage staff turnover at current levels or below.
  1. Legal compliance and the employee environment

We buy

We rent

We sell