Capital employed and ROCE
Net average capital employed in continuing operations (normalised for surplus
cash and cash equivalents, and excluding goodwill) grew by € 14.8 million in 2011
to € 185.6 million, more than fully due to the acquisition of Jones Bootmaker. Combined with the decline in the operating result, the return on net average capital employed in continuing operations (excluding goodwill purchased for acquisitions) came to 15.4%, compared with 26.5% for 2010. Including goodwill, ROCE fell from 11.6% to 6.4% in 2011.
|Capital employed and ROCE1|
|Net average capital employed, excluding goodwill2 (in € mln)||185.6||170.8|
|Net average capital employed, including goodwill (in € mln)||430.9||385.0|
|ROCE as a %, excluding acquisition goodwill||15.4%||26.5%|
|ROCE as a %, including acquisition goodwill||6.4%||11.6%|
1 The results for 2010 differ from those previously published, due to the sale of
BelCompany and the intended sale of Halfords and GP Décors.
The Net Debt / EBITDA ratio (using the definitions agreed with the banks) improved to 0.7 at year-end 2011 (2010: 1.3). By contrast, interest coverage at 5.4 was below the 2010 figure of 8.0. These figures mean that Macintosh Retail Group remains well within the limits set by its lending banks (below 3.0 for Net Debt / EBITDA and above 3.0 for interest coverage).