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Our principal key performance indicators (KPIs)

Aim Progress  
  2009 2008

Earnings per share

Achieve long term steady growth in EPS

38.75p 33.26p

Operating margins

Maintain and strengthen margins

13.31% 13.15%

Free cash flow

Maintain strong free underlying cash flow

£280m £219m

Return on capital employed (ROCE)

Achieve ROCE which exceeds our cost of capital

20.6% 20.3%

Economic profit

Achieve steadily increasing economic profit

£162m £139m

Gearing – interest cover

Maintain an efficient capital structure, with relatively low gearing

10.9x 7.4x

Capital expenditure

Keep at or below 4% of revenue

2.5% 3.5%

Shareholder value

Grow dividends at least in line with earnings – annual growth of total dividends

17% 20%

Retaining people

Maintain high retention rates for senior managers (salaries exceeding £90k p.a.)

88% 88%

Maintain overall employee retention at or above industry average (2009: 84.3%, 2008: 82.7%)1

84% 82%

Controlling our environmental impacts

Continue to measure and assess our carbon footprint (tonnes CO2)

79,212 73,057*

*

1 CIPD 2008 and 2009

Based on latest available greenhouse gas emissions factors from Defra, we have reviewed our calculation methodology and, to ensure accurate year on year comparisons, our 2008 carbon footprint has been restated.