key performance indicators
MITIE’s strategy is centred on sustainable, profi table growth. In delivering this strategy our main aim is to secure value enhancement for our shareholders and other stakeholders. We use the following fi nancial and non-fi nancial key performance indicators (KPIs) along with other management tools to measure our success in the delivery of our strategy and the management of our business:
Financial KPIs
|
KPI |
Target |
2008 |
2007 |
|
Group EBITA |
Maintain existing margins |
5.1% |
4.9%* |
|
Conversion of EBITDA to cash |
Over 90% of Group EBITDA converted to cash |
90.3% |
114.4% |
|
Capital expenditure |
Maintain below 2.0% of revenue |
1.4% |
1.8% |
|
Dividend growth |
At least in line with underlying profit growth at 2.5 times adjusted earning |
17.6% |
18.6% |
|
* Underlying margins maintained at 5.1% |
Divisional EBITA target ranges
|
Division |
Target |
2008 |
2007 |
|
Facilities Services |
Between 6.0 and 7.0% per annum |
6.0% |
6.0%* |
|
Property Services |
Between 4.5 and 5.0% per annum |
5.3% |
4.9% |
|
Engineering Services |
Between 3.0 and 4.0% per annum |
2.7% |
2.8% |
|
Total Group |
Between 5.0 and 6.0% per annum |
5.1% |
4.9%* |
|
* Underlying margins maintained at 5.1% |
Non-financial KPIs
|
KPI |
Target |
2008 |
2007 |
|
Reportable accidents |
Retain focus on reducing the risk of accidents in our business |
4.0 (per 1,000 employees) |
5.1 (per 1,000 employees) |
|
Management retention |
Maintain a management retention rate of more than 90% |
92.0% |
91.4% |
|
CO2 emissions |
Understand and minimise the environmental impact of our operations |
0.64 tonnes equivalent CO2 per employee |
0.70 tonnes equivalent CO2 per employee |
|
Retention of existing contracts |
Active contract retention rates in excess of 90% |
86.0% |
85.0% |
|
Forward order book |
Increase order book |
£4.4bn |
£4.1bn |