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This site is under development and will be the new home of Wolseley plc, the world’s leading specialist distributor of plumbing and heating products, when we change our name to Ferguson plc on 31 July 2017. Please come back then and visit us then. In the mean time, please visit our current live site below for further information Thank you.

www.wolseley.com

Key Performance Indicators


Our KPIs are aligned to our strategic drivers of profitable growth set out in our strategy.

Like for like revenue growth

Definition

The percentage increase or decrease in revenue year-on-year excluding the effect of currency exchange, acquisitions and disposals, trading days and branch openings and closures.

Description

Like-for-like revenue growth was 6.0% in 2016/17. The improved growth rate from 2015/16 was due to a strong outperformance of the market in the USA and the headwinds of commodity deflation and weak industrial markets easing. 

Gross margin

Definition

The ratio of gross profit, excluding exceptional items, to revenue.

Description

Gross margin improved by 40 basis points compared to 2015/16 principally as a result of the USA and UK improving their mix of business towards higher margin channels and product categories.

Trading margin

Definition

The ratio of trading profit, excluding exceptional items, to revenue.

Description

Trading margin improved and returned to a high of 6.9%. Growth was driven by all regions performing well and the mix of business improving. 

Average cash-to-cash days

Definition

The 12-month average number of days from payment for items of inventory to receipt of cash from customers.

Description

Average cash-to-cash days improved year-on-year to 54 days. All regions improved their working capital with reductions in both inventory and receivable days. 

Return on gross capital employed

Definition

The ratio of trading profit to the average year-end aggregate of shareholders’ funds, adjusted net debt and cumulative goodwill and other acquired intangible assets written off. This is for continuing and discontinued operations.

Description

Return on gross capital employed improved from 17.2% to 19.5%. This is in line with our investment case and long-term objective of generating attractive returns on capital.

Associate engagement, USA

Definition

Engaged associates deliver excellent customer service, consequently we measure employee engagement in every region. Engagement surveys are periodically sent to associates at all levels asking: ‘Would you recommend Ferguson as a place to work to a good friend?’.

Description

The process of tracking and reporting engagement differs by region, therefore an example is given for the USA. Average engagement was 77.4%in 2016/17, a decline compared to 2015/16 but it remains a very high score, well above industry averages. Management believes the lower score achieved in 2016/7 was due to reorganisation and leadership changes which included Business Model Improvement, a complex nationwide change management programme, which is now complete.

Customer service, USA

Definition

There is a good correlation in our business between high customer loyalty scores in a branch and better financial performance. The net promoter score is a means of measuring customer service. The survey asks: “How likely is it that you would recommend Ferguson to a friend or colleague?” and customers respond with a score between zero (bad) and ten (exceptional). We look at the 12-month average of the proportion of customers who scored nine or more, less those customers scoring six or less. The methodology was changed in 2017 and prior years restated to weight the responses by business unit revenue.

Description

The process of tracking and reporting customer service differs by region, therefore an example is given for the USA, the largest region in the Group. The average net promoter score increased in 2016/17 to 63.8. This score is among the highest levels in the industry. 

Injury rate

Definition

Total number of injuries per 100,000 hours worked. The numbers are based on injuries requiring an associate to leave the workplace for medical treatment. The hours worked are calculated using full-time equivalent associate numbers and average work days by business and assume an eight-hour working day. This is for continuing and discontinued operations.

Description

Injuries requiring medical treatment per 100,000 hours worked deteriorated by 7.2 per cent compared to the previous year. This is primarily as a result of a deterioration of the injury rate in the USA. All businesses have plans in place to improve the injury rate. See the Sustainability section for more information.