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Definition and Calculation of Non GAAP Measures
Return on average capital employed (ROCE)
DEFINITION:
Calculated by dividing operating profit on a rolling 12-month basis for a period by the average net operating assets at 30 June, 31 December and previous 30 June.
CALCULATION:
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Accounts reference |
June 2014 £ million |
June 2013 £ million |
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Operating profit |
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6 months to 30 June 2012 (A) |
Income statement |
158 |
|
|
|
Year to 31 Dec 2012 (B) |
Income statement |
385 |
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|
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Therefore 6 months to 31 Dec 2012 |
(B)–(A) |
227 |
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6 months to 30 June 2013 |
Income statement |
157 |
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|
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12 months to 30 June 2013 |
384 |
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6 months to 30 June 2013 (C) |
Income statement |
157 |
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Year to 31 Dec 2013 (D) |
Income statement |
358 |
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|
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Therefore 6 months to 31 Dec 2013 |
(D)–(C) |
201 |
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6 months to 30 June 2014 |
Income statement |
140 |
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|
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12 months to 30 June 2014 |
341 |
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Average net operating assets |
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30 June 2012 |
Refer to Note (a) below |
1,667 |
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31 Dec 2012 |
Note 4(g) of 2012 Accounts |
1,708 |
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30 June 2013 |
Refer to Note (a) below |
1,773 |
1,773 |
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31 Dec 2013 |
Note 4(g) of 2013 Accounts |
1,598 |
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30 June 2014 |
Refer to Note (a) below |
1,616 |
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|
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Average (i.e. total of 30 June, 31 Dec and previous 30 June divided by 3) |
1,662 |
1,716 |
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ROCE (operating profit divided by average operating assets) |
21% |
22% |
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June 2014 £ million |
June 2013 £ million |
June 2012 |
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Note (a): |
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Per June Interim Accounts |
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Note 6(e) |
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Assets |
1,948 |
2,131 |
2,121 |
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Liabilities |
(332) |
(358) |
(454) |
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Net operating assets |
1,616 |
1,773 |
1,667 |
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Ratio of revenue to average gross rental assets
DEFINITION:
Revenue on a rolling 12-month basis for the period (excluding pass through fuel) divided by the average gross rental assets at 30 June, 31 December and previous 30 June.
CALCULATION:
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Per Income statement £ million |
Pass-through £ million |
Excl. pass- £ million |
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Revenue |
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6 months to 30 June 2012 |
734 |
(20) |
714 |
|
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Year to 31 Dec 2012 |
1,583 |
(40) |
1,543 |
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Therefore 6 months to 31 Dec 2012 |
849 |
(20) |
829 |
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6 months to 30 June 2013 |
760 |
(15) |
745 |
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12 months to 30 June 2013 |
1,609 |
(35) |
1,574 |
|
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6 months to 30 June 2013 |
760 |
(15) |
745 |
|
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Year to 31 Dec 2013 |
1,573 |
(42) |
1,531 |
|
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Therefore 6 months to 31 Dec 2013 |
813 |
(27) |
786 |
|
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6 months to 30 June 2014 |
768 |
(23) |
745 |
|
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12 months to 30 June 2014 |
1,581 |
(50) |
1,531 |
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Accounts reference |
30 June 2014 £ million |
30 June 2013 £ million |
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Average gross rental assets |
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30 June 2013 and 30 June 2012 |
Note 11 of June 2013 Interim Accounts |
2,508 |
2,219 |
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31 Dec 2013 and 31 Dec 2012 |
Note 14 of Dec 2013 Accounts |
2,373 |
2,328 |
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30 June 2014 and 30 June 2013 |
Note 11 of June 2014 Interim Accounts |
2,388 |
2,508 |
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Average (i.e. total of 30 June, 31 Dec |
2,423 |
2,352 |
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Revenue/gross rental assets |
63% |
67% |
Note 1: Pass-through fuel relates to contracts in our Power Projects business where we provide fuel on a pass-through basis.
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA)
CALCULATION:
|
Accounts reference |
30 June 2014 £ million |
30 June 2013 £ million |
|
|
Operating profit |
Income statement |
140 |
157 |
|
Depreciation |
Note 4 |
130 |
137 |
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Amortisation |
Note 4 |
2 |
2 |
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EBITDA |
272 |
296 |
Interest cover: EBITDA on a rolling 12-month basis divided by net finance costs on a rolling 12-month basis
CALCULATION:
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Accounts reference |
June 2014 |
June 2013 |
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|
EBITDA |
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6 months to 30 June 2012 (A) |
270 |
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Year to 31 Dec 2012 (B) |
Page 169 of 2013 Annual Report |
626 |
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Therefore 6 months to 31 Dec 2012 |
(B)–(A) |
356 |
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6 months to 30 June 2013 |
Per above |
296 |
|
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12 months to 30 June 2013 |
652 |
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6 months to 30 June 2013 (C) |
Per above |
296 |
|
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Year to 31 Dec 2013 (D) |
Page 169 of 2013 Annual Report |
636 |
|
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Therefore 6 months to 31 Dec 2013 |
(D)–(C) |
340 |
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6 months to 30 June 2014 |
Per above |
272 |
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12 months to 30 June 2014 |
612 |
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Net finance costs |
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6 months to 30 June 2012 (A) |
Income statement |
12 |
|
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Year to 31 Dec 2012 (B) |
Income statement |
25 |
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Therefore 6 months to 31 Dec 2012 |
(B)–(A) |
13 |
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6 months to 30 June 2013 |
Income statement |
13 |
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12 months to 30 June 2013 |
26 |
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6 months to 30 June 2013 (C) |
Income statement |
13 |
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Year to 31 Dec 2013 (D) |
Income statement |
25 |
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Therefore 6 months to 31 Dec 2013 |
(D)–(C) |
12 |
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6 months to 30 June 2014 |
Income statement |
10 |
|
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12 months to 30 June 2014 |
22 |
|
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|
Interest cover (times) |
28 |
25 |
Net Debt to EBITDA: Net debt divided by rolling 12-months EBITDA
CALCULATION:
|
Accounts reference |
June 2014 |
June 2013 |
|
|
Net debt (£ million) |
Cash flow statement |
537 |
552 |
|
EBITDA (£ million) |
Per above |
612 |
652 |
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Net debt/EBITDA (times) |
0.9 |
0.8 |
Dividend cover
DEFINITION:
Basic earnings per share (EPS) divided by half year declared dividend.
CALCULATION:
|
Accounts reference |
June 2014 |
June 2013 |
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|
Basic EPS (pence) |
Income statement |
36.48 |
39.32 |
|
Half year declared dividend |
Note 7 |
9.38 |
9.11 |
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Dividend cover (times) |
3.9 |
4.3 |