Welcome to ‘My key KPI’, a new weekly content series where we ask CFOs and FDs what metrics and measures they use to drive their businesses forward.
The aim is to understand how different finance professionals, across a broad array of industries and sectors, use data to inform their decision making.
This week, AccountingWEB speaks to Lee Camp, the group finance director of Salamanca Group.
My key KPI: cash profit
“We’ve invested in gold mining in Indonesia, all the way through to tech businesses and we’ve just acquired a 635 acre site in Bristol that we’re developing – and that’s just one division of the business.”
So a ‘key KPI’ isn’t an easy question for Lee Camp, the group finance director of Salamanca Group, a merchant bank based in Mayfair. “The way we operate, we have a number of investments across very different divisions,” he said. “One KPI for a particular business division is very different from another.”
For Salamanca’s property management arm, ARR (annual recurring revenue) is the crucial indicator; for its investments, Camp focuses on mark-to-market value of the investment, which records the value of an asset with respect to its current market price.
But when it comes down to it, Camp has one key KPI: “The key metric is how much cash you have in the bank. That is the first KPI that people often forget about. Is your cash going up or down?
“Ultimately, we can monitor performance across the group in a range of ways, but what am I interested in: cash and profits. You could talk about return on investment or profit on a particular deal, but the key metric is cash profit.”
Would you like to be featured in ‘My key KPI’? Get in touch!
About Francois Badenhorst
I'm AccountingWEB's business editor. Feel free to get in touch with comments, tips, scoops or irreverent banter.