KPIDefinitionCommitmentPerformanceHistoric Performance
Underlying Profit before taxMeasures the normal underlying performance of the business after removing non-recurring itemsThe Board considers that this measurement of profitability provides stakeholders with information on trends and performance.Underlying profit grew by 11.4% year-on-year with the strong sales performance reflected in improved profitability.
Underlying Earnings per ShareUnderlying profits as defined above divided by the number of shares in issueEPS is a measure of our investment thesis and as such we aim to manage revenues and margins and invest in long term growth.As a result of the increase in underlying profit before tax EPS rose by 13.8%
EBITDAEarnings before Interest, Tax, Depreciation and AmortisationThe Board considers that this measurement of profitability is a viable alternative to underlying profit and uses this measure to incentivise management.EBITDA improved by 8.7%, reflecting the improved profitability flowing through from the strong sales growth.
Dividend per Ordinary ShareCash returned to shareholders as a return on their investment in the CompanyTo maintain this policy whilst retaining the flexibility to invest when opportunities are identified.The Board has recommended a final dividend of 11.0 pence per share (FY14: 9.1 pence) taking the full year dividend to 16.5 pence, an increase of 15.4%. The Board will continue to maintain a c.2× dividend cover over the medium term.
Total RevenuesTotal sales revenues from all business activitiesThe Group is committed to growing sales in all of its core trading activities.Group revenues were up 6.9% and exceeded our £1bn target a year ahead of plan.
Net DebtBank debt plus finance leases, less cash and cash equivalents both in-hand and at bankThe Group remains strongly cash generative and continues to invest in the business. The Board is committed to maintaining an efficient balance sheet, returning any surplus capital not required to fund growth to shareholders.The Group has continued its strong track record of operating cash generation.
Free Cash FlowCash generated from activities, less taxation, capital expenditure and net finance costsThe Group has a track record of robust cash generation which the Board intends to continue.The Free Cash Flow of £66.4m is after the Boardman acquisition and increased capital expenditure as we progress through the Getting Into Gear plan.