4.7 Metric 7 : Return on Capital Employed (%)
The regulatory definition of this metric is : “ This metric compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources . The ROCE metric would support registered providers with a wide range of capital investment programmes ”.
3.2 %
Metric 7 - Return on Capital Employed (%)
3.0 %
2.8 % 2.6 %
2.4 %
Metric 7 - Return on Capital Employed (%)
2.2 %
2 % 2015 2016 2017 2018
The information above highlights a steady and ongoing improvement in this metric over the four year trend period . 2016 saw the most significant increase . Performance has been relatively consistent from 2016-2018 , but with an overall increase / improvement in the measurement being noted . Accord ’ s performance is comparative to its peer group for this metric .
5 %
Metric 7 - Return on Capital Employed (%)
4 % 3 % 2 % 1 %
Metric 7 - Return on Capital Employed (%)
0 % |
Accord 2018 |
Accord 2017 |
RP1 ( 2017 ) |
RP2 ( 2017 ) |
RP3 ( 2017 ) |
RP4 ( 2017 ) |
RP5 ( 2017 ) |
RP6 ( 2017 ) |
RP7 ( 2017 ) |
RP8 ( 2017 ) |
RP9 ( 2017 ) |
Did Accord meet its VFM target / objectives ?
Yes – The Return of Capital Employed metric is principally driven by the value of Accord ’ s asset base and also operating surplus performance .
Accord achieved its 2017 / 18 aspirations regarding operating surpluses and development activity . Both of these measures drive the return on capital employment metric .
Future performance targets for this metric
As outlined in the commentary for metrics 1 , 2 and 6 Accord is committing to adding to its asset base through the development of new homes and also to increasing operating surpluses / margins . Both of these factors make a positive contribution to the Return on Capital Employed metric – accordingly there is an expectation that further year-on-year improvements will be identified going forwards .
Financial Statements 2018 19