New goals for the next five years to 2023
Defining Our Strategy Our new strategy, announced in May 2018, refocuses our business purpose and firmly puts the customer at the heart of all the decisions we make today and in the future. We will seek to use our high-quality landbank more efficiently to deliver growth, both in the number and quality of homes built for a wider range of customers. We will also aim to grow the operational capacity of the business through investment in our skills, supply chain development and research and development. The strategy that we have outlined will result in a larger scale business with strong and secure cash generation, as we work our existing and future assets harder to deliver more homes over the next five years. OUR FINANCIAL TARGETS FOR THE NEXT FIVE YEARS (2018-2023) • Increase of return on net operating assets** to 35%. • Maintaining operating profit* margins at c.21-22%. • Operating cash conversion of between 70 and 100% of operating profit into operating cash flow. • Increased landbank efficiency - reducing length of short term owned and controlled landbank years by c.1 year to 4-4.5 years.
Finance Director
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