"We always look to the long-term in the business. Our responsibility is to strike the right balance between building our balance sheet strength, investing in the future of the business, and the level of Partnership Bonus paid to Partners."
Patrick Lewis, Group Finance Director, 2017 Annual Report and Accounts
Financial sustainability and KPIs
Financial sustainability is one of the three strands of our Partnership strategy. We measure our financial sustainabilty through three KPIs; Return on invested capital, Profit per average FTE and Debt ratio.
Debt ratio – Total indebtedness to Adjusted FFO
Total indebtedness as a multiple of adjusted funds from operations (Adjusted FFO). Total indebtedness represents the total borrowings of the Partnership including net debt adjusted for an estimate of non-liquid cash, the IAS 19 pension deficit net of deferred tax, and the present value of future rentals payable under operating leases. Adjusted FFO is cash generated from operations before Partnership Bonus less spend on tax and total finance costs, which includes implied interest on operating leases.
Return on invested capital (ROIC) %
Post tax profit, adjusted for non-operating and exceptional items as a proportion of average operating net assets, adjusted to reflect a deemed capital value for property lease rentals
Partnership profit per average FTE £000
Profit before Partnership Bonus, tax and exceptional items, divided by the average number of full time equivalent.
The John Lewis Partnership holds three corporate bonds which are listed on the stock exchange. This section holds information which will be relevant and helpful to our bondholders, as well as our Partners.
|Issuing Company||Issued Date||Maturity Date||Issued Amount||Coupon||Minimum Denominations||Listed|
|John Lewis Plc||Apr 09||Apr 19||£275m||8.375%||£75,000||London Stock Exchange|
|John Lewis Plc||Jul 10||Jan 25||£300m||6.125%||£50,000||London Stock Exchange|
|John Lewis Plc||Dec 14||Dec 34||£300m||4.250%||£100,000||London Stock Exchange|