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Glossary

A

  • Adjusted attributable earnings

    Adjusted profit after tax attributable to the equity holders of the company.

  • Adjusted distribution margin

    The adjusted profit from operations for the Logistics segment divided by distribution fees for the Logistics segment.

  • Amortisation

    A systematic charge to the income statement to write off the value of intangible assets with finite lives over their useful lives.

  • Attributable earnings

    Profit after tax attributable to the equity holders of the company.

B

  • Blended branches

    Our blended branches businesses in the USA and Canada sell to customers across the residential, commercial and industrial sectors.

C

  • Cash conversion rate

    Cash conversion is calculated as cash flow from operations before tax payments less net capital expenditure relating to property, plant and equipment and software as a percentage of adjusted profit from operations.

  • Cash-to-cash days

    Cash-to-cash days are defined as the average number of days from payment for items of inventory to receipt of cash from customers. The Group uses the 12 month average number of cash-to-cash days, excluding the benefit of factored receivables, to monitor working capital efficiency throughout the year.

D

  • DC

    Distribution centre.

E

  • Earnings per share - adjusted

    Adjusted profit after tax attributable to the equity holders of the Company divided by the weighted average number of shares in issue during the period excluding shares held to satisfy employee share plans and shares purchased by the Company and held as Treasury shares.

  • Earnings per share - basic

    Profit after tax attributable to equity holders of the Company divided by the weighted average number of shares in issue during the period excluding shares held to satisfy employee share plans and shares purchased by the Company and held as Treasury shares.

  • Effective tax rate

    The tax charge in the income statement as a percentage of profit before taxation.

  • Enterprise value (EV)

    Market capitalisation plus net debt.

  • Ex dividend date

    The date from which shares are traded without the right to the most recently declared dividend payment.

F

  • Fill rate

    The proportion of orders that can be fulfilled from inventory on hand at the time of the order.

G

  • Gross margin

    The ratio of gross profit excluding exceptional items to revenue.

  • Growth engine

    The term given to those business units that currently generate – or have the potential to generate – the greatest return on investment over the medium to longer term.

H

  • HVAC

    Heating, ventilation, air conditioning and refrigeration equipment.

  • HDPE

    High density polyethylene, used for making pipes.

I

  • Industrial PVF

    The industrial pipes, valves and fittings sector.

L

  • Labour cost as % of gross profit

    Total labour cost as a percentage of gross profit, excluding exceptional items.

  • Like-for-like revenue growth

    The total increase or decrease in revenue for the year, excluding the effect of currency exchange, trading days, new acquisitions, disposals, branch openings or closures in the year, and the incremental effect of acquisitions, branch openings and branch closures in the prior year.

M

  • Market capitalisation

    The market price of a share multiplied by the number of shares in issue.

  • MRO

    Maintenance, repair and operations services.

  • Market position

    Market position represents the position of the business in its chosen market relative to its competitors. These positions are estimated by the management of our business units, using public and private sources of information.

O

  • On Time In Full

    Deliveries carried out within the agreed period of time with all items provided.

P

  • Performance builders

    The term given to those business units which were underperforming and/or had insufficient scale with no clear economic synergies with our growth engine businesses.

R

  • RMI

    The repair, maintenance and improvement sector.

  • Return on capital employed (ROCE)

    The ratio of trading profit to the average year-end aggregate of shareholders’ funds and adjusted net debt, excluding goodwill and other acquired intangible assets.

  • Return on gross capital employed

    The ratio of trading profit to the average year-end aggregate of shareholders’ funds, adjusted net debt and cumulative goodwill written off.

S

  • SKU

    Stock keeping unit – a number that identifies a product that is offered by Wolseley’s businesses.

  • Synergy drivers

    The term given to those business units that play an important role in supporting and complementing the growth engine businesses through significant economic synergies.

T

  • Total Shareholder Return (TSR)

    The total investment gain to shareholders resulting from the movement in the share price and assuming dividends are immediately reinvested in shares.

  • Trading margin

    The ratio of trading profit to revenue.

W

  • Weighted average cost of capital

    The weighted average of the costs of various types of capital that finance a company or a project. Capital would generally include a mix of debt and equity.