Total shareholder returns

We continue to believe that with flat to low single digit revenue decline, our industry leading margins and strong cash conversion we are able to deliver shareholder returns of 15% to 20% per annum over the long-term.

Total shareholder return % (CAGR)
  31 October 2018 30 April 2017
Compound Annual growth rate    
- Since IPO 20.2% 29.3%
- Over last five years 12.2% 42.7%
- Over last three years 3.7% 51.7%
- Over last one year (51.5%) 73.3%


Performance

These ratios demonstrate the compound annual growth rate in shareholder returns assuming reinvestment of Return of Values, but not ordinary dividends. The periods covered are to 31 October 2018 from the IPO in May 2005, over the last five years from 31 October 2013, over the last three years from 31 October 2015 and over the last year from 31 October 2017. We continue to believe that with flat to low single digit revenue decline, our industry leading margins and strong cash conversion we are able to deliver shareholder returns of 15% to 20% per annum over the long-term.

 

Financial performance

Our financial performance KPIs helped us to monitor our progress towards our 2018 revenue and Adjusted EBITDA growth targets.

Pro-forma constant currency revenue decline
  12 months ended 31 October 2018  Restated 12 months ended 30 April 2017
Pro-forma constant currency revenue decline (4.0%) (0.9%)


Performance

Revenue comprises total revenues compared with the prior 12 months at pro-forma constant currency (“CCY”).

 

Adjusted EBITDA margin
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
Adjusted EBITDA margin 37.7% 46.4%


Performance

Adjusted EBITDA is the EBITDA prior to exceptional items, share-based compensation charge, amortisation of and impairment of product development costs, foreign currency gains/losses and the net capitalisation of product development costs.

The Adjusted EBITDA margin represents Adjusted EBITDA divided by the Pro-forma Revenue for the period.

 

Cash conversion
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
Cash conversion 105.6% 103.9%

 

Performance

This ratio is calculated using the cash flows generated from operations divided by Adjusted EBITDA less exceptional items – the result indicates that the Group is generating cash from its on-going business which can be used to reinvest in the development of the business including financing acquisitions, funding liabilities and paying dividends to shareholders.

 

Free cash flow
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
Free cash flow $755.4m $409.2m


Performance

Free cash flow is defined as cash generated from operations less interest payments, bank loan costs, tax payments, payments for intangible assets and payments for property, plant and equipment. 

 

DSO (days sales outstanding)
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
DSO (days sales outstanding) 94 days 46 days

 

Performance 

Days Sales Outstanding (“DSO”) is the average number of days that customers take to pay their bill. The Group uses the count back method based on the amount the Group has billed customers. The count back calculation starts by taking the total outstanding gross receivables balance (i.e. before bad debt provisions), then deducting the latest month’s total billings from the outstanding gross receivables. If there is a remaining gross receivables balance outstanding after deducting the latest month’s billings, then the calculation deducts the total billings from the previous month, then the month before that and so on, until no outstanding balance remains. The DSO value is the total number of days’ billings that can be absorbed into the outstanding gross receivables balance without leaving a remainder.

Diluted Adjusted EPS (total)
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
Diluted Adjusted EPS (total) 205.65c 175.65c

Performance

Diluted Adjusted EPS is calculated by taking profit after tax, prior to exceptional items, share-based compensation charge, amortisation of purchased intangibles and tax attributable to these charges divided by the weighted average number of fully diluted ordinary shares in issue during the period. This measure indicates the ability of the Company to continue to adopt a progressive dividend policy.

 

Financial strength and capital discipline

Our financial strength and capital discipline KPIs are used to monitor our gearing and interest cover levels. Our target Net Debt to Pro-forma Adjusted EBITDA ratio is 2.7 times.

Net debt to Pro-forma Adjusted EBITDA
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
Net debt to Pro-forma Adjusted EBITDA 2.8 times 2.1 times

 

Performance

Net borrowings less cash and cash equivalents and finance lease obligations expressed as a multiple of the Pro-forma Adjusted EBITDA.

 

Interest cover
  12 months ended 31 October 2018 Restated 12 months ended 30 April 2017
Interest cover 5.1 times 5.6 times

 

Performance

Adjusted EBITDA from continuing operations, expressed as a multiple of finance costs.