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Key performance indicators

In 2008 we delivered another strong performance and made progress across all our KPIs.

Our principal key performance indicators (KPIs) Year end 2008 Year end 2007
Operating margins
Maintain and strengthen margins
13.15% 13.09%
Free cash flow
Maintain free strong underlying cash flow
£219m £184m
Return of capital employed (ROCE)
Achieve ROCE which exceeds our cost of capital
20.4% 19.6%
Economic profit
Achieve steadily increasing economic profit
£140m £110m
Gearing - interest cover
Maintain efficent capital structure, with relatively low gearing
7.4x 8x
Capital expenditure
Keep at or below 4% of revenue
3.5% 3.5%
Retaining people
Senior management retention (annual salaries exceeding £90k p.a.)
88% 89%
Overall employee retention
(industry average 2008: 82.7%, 2007: 81.9%)1
82% 82%
Controlling our environmental impacts
Continue to measure and assess our carbon footprint (tonnes CO2). CO2 emissions rose 10.4% against increases in Group turnover of 18% and staff numbers of 23%
64,611 58,523

1 CIPD 2007 and 2008