KPIs
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 and leverage) influence the remuneration of our executive team. During the year, we have reviewed our KPIs to ensure that they remain appropriate for the Group. As a result, we have added carbon intensity due to our increased focus on environmental matters so that we can clearly track our performance for the Group as a whole. We have removed physical utilisation as this has become less relevant to understanding the performance of the business as we continue to broaden our fleet, particularly with the growth in Specialty.
Furthermore, physical utilisation is a component of dollar utilisation which remains a Group KPI.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
Amplify Specialty
Advance technology
Lead with ESG
Dynamic capital allocation
Linked to remuneration
ADJUSTED EPS (P)
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.
2021 performance
Adjusted EPS was 166p per share in 2020/21.
Strategic priorities
RETURN ON INVESTMENT (‘RoI’) (%)
Calculation
Adjusted operating profit divided by the sum of net tangible and intangible fixed assets, plus net working capital but excluding net debt and tax.
Target
Averaged across the economic cycle we look to deliver RoI well ahead of our cost of capital, as discussed in our Strategic review.
2021 performance
Our RoI was 15% for the year ended 30 April 2021, reflecting the impact of the COVID-19 pandemic.
Strategic priorities
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 adjusted EBITDA, calculated at constant exchange rates (balance sheet rate).
Target
We seek to maintain a conservative balance sheet structure with a target for net debt to adjusted EBITDA of 1.5 to 2.0 times (excluding IFRS 16).
2021 performance
Excluding lease liabilities arising under IFRS 16, net debt at 30 April 2021 was £3,019m and leverage was 1.4 times.
Strategic priorities
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.
2021 performance
In the US, fleet on rent remained broadly constant, in Canada, fleet on rent decreased by 2%, while in the UK it increased by 5%. The US market reduced by 9%, the Canadian market by 11% and the UK market by 16%.
Strategic priorities
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.
2021 performance
Dollar utilisation was 50% in the US, 47% in Canada and 54% in the UK. These reductions in the US and Canada reflect the impact of the COVID-19 pandemic while the UK reflects the work done for the Department of Health.
Strategic priorities
ADJUSTED EBITDA MARGINS (%)
Calculation
Adjusted EBITDA as a percentage of total revenue.
Target
To improve or maintain margins with EBITDA margins of 45–50% in the US, 40–45% in Canada and 35–40% in the UK.
2021 performance
EBITDA margins in 2020/21 were 49% in the US, 30% in the UK and 44% in Canada.
Strategic priorities
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.
2021 performance
Our carbon emission intensity ratio was 64.3 (2020: 68.5).
Strategic priority
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.
2021 performance
Turnover levels have reduced across the business. Our well-trained, knowledgeable staff remain targets for our competitors.
Strategic priority
SAFETY
Calculation
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.
2021 performance
The RIDDOR reportable rates were 0.31 in the US, 0.27 in the UK and 0.29 in Canada.
Strategic priority
Company
Global sites
Contact us
Ashtead Group plc
100 Cheapside
London
EC2V 6DT
Phone: + 44 (0) 20 7726 9700
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