Annual Report and Accounts 2009

Our UK Housing key performance indicators

We have updated our suite of KPIs to more accurately reflect the way that we monitor the UK business in the current market conditions.

Contribution per legal completion Forward order book as a % of completions Owned and controlled plots with planning
Objective Objective Objective
We strive to maximise the level of contribution per home sold. In a flat or falling pricing environment we look to maximise the level of our order book. We aim to maintain sufficient land holdings to enable us to remain selective in future purchases.
     
Definition Definition Definition
Revenue net of incentives less build costs, land costs and direct selling costs divided by the number of homes completed. The number of homes in our year-end order book, expressed as a percentage of the number of homes completed during the year (excluding joint venture completions). The total number of plots that we either own or control, with some form of planning consent.
     
Why is it key to our strategy? Why is it key to our strategy? Why is it key to our strategy?
In an environment where volumes are likely to remain constrained in the short term, growing the contribution per legal completion offers a route to profit growth. Entering the year with a strong order book puts our sales teams in a stronger negotiating position with regard to price and enhances our ability to increase the contribution per legal completion. Having a pipeline of land in place is key to delivering budgeted future home completions.
Graph: 2008:16.5; 2009:12.6 Graph: 2008:31.7;  2009:53.6 Graph: 2008:74,917; 2009: 66,089
£12.6k
for 2009
(£16.5k for 2008)
53.6%
for 2009
(31.7% for 2008)
66,089
for 2009
(74,917 for 2008)
 
 
Customer satisfaction Health and safety Waste generated per home
Objective Objective Objective
We strive to maintain and improve our customer satisfaction scores. We want our employees and sub-contractors to go home safe and uninjured day after day. We aim to reduce the level of waste generated per home each year.
     
Definition Definition Definition
Percentage of customers satisfied or very satisfied with their new home as measured by the National New Homes survey undertaken by the NHBC on behalf of the HBF eight weeks after legal completion. Reportable injury frequency rate per 100,000 hours worked. Total tonnage of construction waste per home built.
     
Why is it key to our strategy? Why is it key to our strategy? Why is it key to our strategy?
Delivering high levels of customer satisfaction increases the reputation of our business and reduces the costs associated with rectifying poor quality work. As well as having a moral duty to maintain safety on site, lapses can have a detrimental impact on the business through additional costs, delays and/or reputational damage. As well as having a beneficial impact on the environment, reducing waste is a key part of driving down build cost and may also assist in winning future planning consents.
Graph: 2008:79.4; 2009:87.1 Graph: 2008:0.296; 2009:0.226 Graph: 2008:5.11; 2009:4.69
87.1%
for 2009
(79.4% for 2008)
0.226
for 2009
(0.296 for 2008)
4.69 tonnes
for 2009
(5.11 tonnes for 2008)