Definition

Profit before income tax and non-underlying items as shown in the Group Income Statement.

Commitment

The Board considers that this measurement of profitability provides stakeholders with information on trends and performance, before the effect of non-underlying items.

Performance

PBT finished £40.4m above FY20 driven by share gains in Motoring services, profitability improvements across the Group, and share gains and strong demand in Cycling.

Link to Remuneration:

Bonus

Historic Performance

Definition

Profit after income tax and before non-underlying items as shown in the Group Income Statement, divided by the number of shares in issue.

Commitment

EPS is a measure of our investment thesis and as such we aim to manage revenues, margins and invest in long-term growth.

Performance

Underlying EPS grew 67.5% reflecting the strong profit performance.

Link to Remuneration:

Performance Share Plan

Historic Performance

Definition

Underlying EBIT results from operating activities before non-underlying items. Underlying EBITDA further removes Depreciation and Amortisation.

Commitment

The Board considers that these measurements of profitability are a viable alternative to underlying profit and uses these measures to incentivise Management.

Performance

Underlying EBITDA grew 47% reflecting the strong profit performance with depreciation 10% above last year as capital expenditure was moderated due to COVID-19.

Historic Performance

The numbers below represent Underlying EBITDA

Definition

Cash returned to shareholders as a return on their investment in the Company.

Commitment

Our existing dividend policy was suspended last year in light of the considerable uncertainty that we faced during the pandemic. We will reinstate the ordinary dividend from FY22, intending this to be progressive. Should surplus cash remain in the business that we feel we cannot deploy with good rates of return, we will return this to shareholders in the most appropriate way.

Performance

With the strong close to FY21, the Board proposed a final dividend of 5p.

Historic Performance

Definition

Adjusted Operating Cash Flow less capital expenditure, net finance costs, taxation, exchange movement and arrangement fees on loans.

Commitment

Our medium-term target is to grow Free Cash Flow over the current three year period (FY19–FY21) compared with the previous three years (FY16–FY18).

Performance

Free Cash Flow was strong, £91m above FY21 from the strong profit performance and working capital inflow. We anticipate circa £36m of the working capital inflow to reverse in FY22.

Historic Performance

Definition

Represented by the ratio of Net Debt to Underlying EBITDA.

Commitment

We currently continue to target a ratio of 1.05, with a range of up to 1.55 to allow for appropriate M&A. We will arrive at the debt target over time. This ratio helps to compare the financial result for the year to debt levels.

Performance

The Group ended FY21 with net positive cash.

Historic Performance

Definition

Service-related Group sales is the income derived from the fitting or repair services themselves along with the associated product sold within the same transaction.

Commitment

To grow service-related Group sales faster than total Group sales growth.

Performance

Service-related sales growth was very strong, now accounting for 28.7% of Group sales. The growth was driven by our Autocentres business from both our FY20 acquisitions, the expansion of our HME business and market share gains across the Autocentres.

Link to Remuneration:

Bonus and Performance Share Plan

Historic Performance

Definition

The proportion of Group colleagues who respond positively to the questions in the Colleague Engagement Survey.

Commitment

We aim to improve Colleague Engagement across the Group with specific focus on required areas identified by colleagues.

Performance

Engagement fell 2% which although disappointing on face value was a positive result given the unprecedented challenges and disruption felt by every colleague within the business. We launched several initiatives to try and lessen the burden both financially and their mental and physical health.

Link to Remuneration:

Bonus

Historic Performance