Capital employed, roce and ratios

Net average capital employed (normalised for surplus cash and cash equivalents) contracted by € 22.5 million in 2010 to € 424.5 million. Moreover, thanks to an increase in the operating result, the return on net capital employed climbed from 19.6% in 2009 to 26.9% in 2010 (excluding the goodwill purchased on the acquisitions of Scapino and Brantano). Including goodwill, ROCE increased from 10.0% in 2009 to 13.2%, a performance well above Macintosh’s target of 12%.

Capital employed and ROCE  
Net average capital employed (€ millions) 424.5447.0
ROCE as a % excl. acquisition goodwill 26.919.6
ROCE as a % incl. acquisition goodwill13.210.0

The ratio of net debt to EBITDA (using the definitions agreed with the banks) improved, the figure being 1.3 at year-end 2010 (2009: 1.9). The Interest coverage ratio likewise improved, 5.9 at year-end 2009 to 8.1 at year-end 2010. This means that Macintosh Retail Group remains well within the limits set by its lending banks (below 3.0 for net debt to EBITDA and above 3.0 for interest coverage.)