Why it’s important
Sustainable growth in delivered sales is key to our longterm success, increasing market share and creating opportunities.
What we measure
Revenue is a measure taken directly from our primary statement of accounts, and is the combined total of all furniture and flooring delivered sales made, excluding VAT and the costs of interest-free credit, both online and across all of our showrooms.
Why it’s important
Whilst overall delivered sales growth is important, understanding how the same showrooms perform year-on-year provides a guide to underlying showroom performance. Due to lead times, order growth also gives a view as to future delivered sales performance.
What we measure
Like-for-like order intake growth compares year-on-year trading performance from comparable showrooms. It, therefore, excludes new and closed showrooms. Order value is a combined total of all furniture and flooring orders booked, including VAT, both online and across all of our showrooms.
Why it’s important
The Group needs to maximise its share of customers wanting to transact online.
What we measure
Online sales growth is the portion of the gross sales figure as defined above, attributable to our online website and telesales.
Why it’s important
To grow profitably, the Group must ensure that sales growth is supported by maintaining or growing the gross margin.
What we measure
Gross margin % of gross sales is a measure taken directly from our primary statement of accounts and is the total margin made from sale of product, excluding VAT, as a proportion of total gross sales.
Why it’s important
Delivering profitable growth is essential as we aim to create value for all stakeholders over the long term.
What we measure
Profit before tax reflects the performance of the Group before taxation impacts. Following the adoption of IFRS 16 the Group has started using PBT as a KPI rather than underlying EBITDA as PBT includes the full cost of the Group’s property leases.
Why it’s important
EPS is key to the business to understand the return being generated from profits to our shareholders.
What we measure
EPS is calculated by dividing profit attributable to shareholders by the average number of outstanding shares.
