Annual report 2016


EBITDA – Earnings before interest, tax, depreciation, amortisation and exceptional items. Calculated by taking operating profit before exceptional items and adding back depreciation.

Fixed charge cover – Calculated by dividing EBITDAR (operating profit before depreciation, rent and exceptional items) less maintenance capex by the sum of interest and rent.

Free cash flow – Movement in net debt due to operating cash flows after interest payments, tax payments, core capex and dividends, but excluding exceptional items, acquisitions, disposals and share movements.

LFL – Like for like. LFL performance is calculated against a comparable period in the prior year for pubs that were trading in both periods. Figures for the Spirit business and combined group business therefore take account of Spirit trading prior to the acquisition date. Pub Company like-for-like sales include revenue from the sale of drink, food and accommodation.

NPS – Net promoter score. Calculated by asking customers how likely they are to recommend the pub on a scale of 0–10 (10 being the most favourable). The percentage of responses where the score is 0–6 (brand detractors) is subtracted from the percentage of responses where the score is 9 or 10 (brand promoters) to give the NPS. Scores of 7 or 8 (passive responses) are ignored.

OBV – Own-brewed volume. The volume of beer brewed at our Greene King and Belhaven breweries sold in the period.

ROCE – Return on capital employed. Calculated by dividing pre-exceptional operating profit by average capital employed. Capital employed is defined as total net assets excluding deferred tax balances, derivatives, post-employment liabilities and net debt.

Core capex – Cash outflow in respect of ongoing development and maintenance capital investment on pubs in the group’s estate. Core capex excludes integration capex, investment in the brand optimisation programme and investments in single-site acquisitions and new-build developments.