At Group level, we measure the performance of the business using a number of key performance indicators (‘KPIs’). These help to ensure that we are delivering against our strategic priorities. Several of these KPIs (adjusted EPS, return on investment, leverage and carbon intensity) influence the remuneration of our executive team.

Certain KPIs are more appropriately measured for each of our operating businesses, whereas other KPIs are best measured for the Group as a whole.

Link to strategic priorities

Grow General Tool and advance our clusters  Grow General Tool and advance our clusters
Amplify Specialty  Amplify Specialty
Advance technology  Advance technology
Lead with ESG  Lead with ESG
Dynamic capital allocation  Dynamic capital allocation
Remuneration  Linked to remuneration

ADJUSTED EPS (¢)

    Calculation

    Adjusted Group profit after taxation divided by the weighted average number of shares in issue (excluding shares held by the Company and the ESOT).

    Target

    As a cyclical business, adjusted EPS varies through the cycle.

    2023 performance

    Adjusted EPS was 388.5¢ per share in 2022/23

    Strategic priorities

    Grow General Tool and advance our clusters Grow General Tool and advance our clusters Dynamic capital allocation Remuneration

    RETURN ON INVESTMENT (‘RoI’) (%)

      Calculation

      Last 12-month (‘LTM’) adjusted operating profit divided by the LTM average of the sum of net tangible and intangible fixed assets, plus net working capital but excluding net debt and tax. RoI is calculated excluding the impact of IFRS 16.

      Target

      Averaged across the economic cycle we look to deliver RoI well ahead of our cost of capital, as discussed in our strategic review

      2023 performance

      Our RoI was 19% for the year ended 30 April 2023.

      Strategic priorities

      Grow General Tool and advance our clusters Amplify Specialty Dynamic capital allocation Remuneration

        NET DEBT AND LEVERAGE AT CONSTANT EXCHANGE RATES

          Calculation

          Net debt is total debt less cash balances, as reported, and leverage is net debt divided by EBITDA, calculated at constant exchange rates (balance sheet rate). Both net debt and leverage exclude the impact of IFRS 16.

          Target

          We seek to maintain a conservative balance sheet structure with a target for net debt to EBITDA of 1.5 to 2.0 times (excluding IFRS 16).

          2023 performance

          Excluding lease liabilities arising under IFRS 16, net debt at 30 April 2023 was $6,588m and leverage was 1.6 times.

          Strategic priorities

          Dynamic capital allocation Remuneration

            FLEET ON RENT ($m/£m/C$m)

              Calculation

              Fleet on rent is measured as the daily average of the original cost of our itemised equipment on rent.

              Target

              To achieve growth rates in excess of the growth in our markets and that of our competitors.

              2023 performance

              In the US, fleet on rent increased 15% (rental revenue up 24%), in Canada, fleet on rent increased by 25% (rental revenue up 22%), while in the UK it increased by 5% (rental revenue up 3%). The US market increased by 12%, the Canadian market by 8% and the UK market by 4%.

              Strategic priorities

              Grow General Tool and advance our clusters Amplify Specialty Advance technology

                DOLLAR UTILISATION (%)

                  Calculation

                  Dollar utilisation is rental revenue divided by average fleet at original (or ‘first’) cost measured over a 12-month period.

                  Target

                  Improve dollar utilisation to drive improving returns in the business.

                  2022 performance

                  Dollar utilisation was 61% in the US, 53% in the UK and 55% in Canada. The increase in the US reflects improved rate environment while, in the UK, the decrease reflects the lower level of ancillary revenue due to the reduction in the work done for the Department of Health work.

                  Strategic priorities

                  Grow General Tool and advance our clusters Amplify Specialty

                    EBITDA MARGINS (%)

                      Calculation

                      EBITDA as a percentage of total revenue.

                      Target

                      To improve or maintain margins with EBITDA margins of 40-50% in the US, 40-45% in Canada and 35-40% in the UK.

                      2022 performance

                      EBITDA margins in 2022/23 were 48% in the US, 41% in Canada and 28% in the UK.

                      Strategic priorities

                      Grow General Tool and advance our clusters Amplify Specialty Advance technology Dynamic capital allocation

                      CARBON INTENSITY (TCO2E/$M)

                        Calculation

                        Carbon intensity is calculated as emissions per $m of revenue (tCO2e/$m), calculated at constant exchange rates.

                        Target

                        To reduce our carbon intensity by 35% by 2030 with reference to 2018 as a base year, with a shorter term target of 15% by 2024.

                        2023 performance

                        Our carbon emission intensity ratio was 38.4 (2022: 42.2).

                        Strategic priority

                        Lead with ESG Remuneration

                        STAFF TURNOVER (%)

                          Calculation

                          Staff turnover is calculated as the number of leavers in a year (excluding redundancies) divided by the average headcount during the year.

                          Target

                          Our aim is to keep employee turnover below historical levels to enable us to build on the skill base we have established and maintain and enhance the culture of the business.

                          2023 performance

                          Our well-trained, knowledgeable staff remain targets for our competitors.

                          Strategic priority

                          Lead with ESG

                          SAFETY

                          Calculation

                          In North America, reportable incidents are reported in accordance with the OSHA (Occupational, Safety and Health Administration) framework as a Total Recordable Incident Rate (‘TRIR’). In the UK, the RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) reportable rate is the number of major injuries or over seven-day injuries per 100,000 hours worked.

                          Target

                          Continued reduction in accident rates.

                          2023 performance

                          The TRIR was 0.97 in the US and 0.89 in Canada. The RIDDOR reportable rate was 0.25 in the UK. 

                          Strategic priority

                          Lead with ESG