Full Annual Report - Inchcape

Business review
Strategy
Key Performance Indicators (KPIs)
These KPIs are how we measure
the success of our business
Key performance indicators
The Inchcape plc Board of
Directors and the Group
Executive Committee monitor
the Group’s progress against
its strategic objectives and the
financial performance of the
Group’s operations on a regular
basis. Performance is assessed
against the strategy, budgets
and forecasts.
We also measure the quality
of revenues through the mix of
revenue streams, and the flow
through of value from sales
revenue to trading profit.
Sales
Definition
Defined as the
consideration receivable
from the sale of goods
and services. It is stated
net of rebates and any
discounts and excludes
sales related taxes.
Trading profit
Definition
Defined as operating
profit excluding the
impact of exceptional
items and unallocated
central costs.
Trading margin
Definition
Calculated by dividing
trading profit by sales.
Achievements in 2009
Achievements in 2009
Achievements in 2009
Thanks to the growth in
our market share, our
sales decline was limited
to 10.8% despite the
severity of the global
economic downturn.
Trading profit declined by
22.4% in 2009 driven by
the significant market
declines across the
Group’s regions.
Resilient trading margin
of 3.5% achieved in
challenging trading
conditions, offset by
significant cost savings.
Sales
Trading profit
Trading margin
£5.6bn
-10.8%
£4.5bn
£4.8bn
£6.1bn
£6.3bn
£5.6bn
Australasia 19.5%
Europe 14.7%
North Asia 10.3%
South Asia 28.8%
UK 24.1%
Russia and Emerging
Markets 2.6%
£194.0m
3.5%
05
06
07
08
09
20
Inchcape plc ¦ Annual Report and Accounts 2009