Highlights
12 months ended 30 September 2014 compared with 12 months ended 30 September 2013:
Underlying EBIT on a like-for-like basis was £323 million, an increase of £98 million, or 44% (FY13 LFL: £225 million)
All businesses delivered improved profitability. In particular, underlying UK EBIT margin improved by 130 basis points to 3.5% (FY13: 2.2%), achieving our FY14 target
New Product revenue grew by £186 million in FY14, bringing cumulative growth since FY12 to £280 million and contributing towards our FY15 target of £700 million. Customer demand for Concept Hotels has been encouraging with Summer 14 bookings up 43% year-on-year
Web penetration increased to 38% (FY13: 36%). In particular, web performance improved on main websites in the UK, Germany and Northern Europe where our focused digital investment has led to double-digit increases in bookings. We developed and implemented our omnichannel strategy in the UK, with other markets to follow
Further Wave 1 cost out and profit improvements of £206 million delivered in FY14 brought cumulative benefits to £400 million. Reflecting the continuing success of the programme, we are increasing our Wave 1 FY15 target from £460 million to more than £500 million
Our Wave 2 FY18 target currently remains at £400 million. We are increasing our identified risk-weighted benefits by £30 million to £180 million, reflecting greater certainty of delivery
We have de-risked our business by reducing low profit and high risk operations, through business disposals, strategic reductions in risk capacity in France and Russia, and the removal from sale of low quality product
Net debt reduced by £95 million to £326 million (FY13: £421 million), alongside significant investment in the business in the form of capital expenditure and transformation costs
