- Strategy & performance
In this section we give an overview of our performance in 2010, plus objectives and our outlook for 2011.
- Business review
Find out about how each of our businesses have performed this year, plus our outlook for each in 2011.
Business overview
For an at a glance overview of the performance of each of our businesses.
- Governance
Find out about how we govern the company, our remuneration policies, the director’s report and a statement of their responsibilities.
- Financials
Including consolidated statements, the auditor’s report, notes to the accounts and a five year summary.
- Shareholder
information
For useful share management and investor information, including key dates for the diary and contact information.
Annual General Meeting
Will be held on Wednesday 11 May 2011 at 11.00 am
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Page contents
Market conditions
Growth declined in 2010 as a result of the portfolio shrinkage from 2009. However retention levels improved significantly during the year as the major economies stabilised and the level of gross contracts sales increased over 2009. All markets are highly fragmented with a large number of small operators, although the larger companies have a competitive advantage in terms of route density and product offering. Ambius currently has approximately 55,000 customers over 13 countries.
| Fourth quarter | Full year | ||||||
|---|---|---|---|---|---|---|---|
| £m | 2010 | 2009 | Change | 2010 | 2009 | Change | |
|
At 2009 constant exchange rates: |
|||||||
| Revenue | 36.2 | 34.8 | 4.0% | 116.6 | 121.0 | (3.6%) | |
| Adjusted operating profit (before amortisation and impairment of intangible assets1 and one-off items) | 4.7 | 5.0 | (6.0%) | 8.4 | 8.8 | (4.5%) | |
| At actual exchange rates: | |||||||
| Adjusted operating profit (before amortisation and impairment of intangible assets1 and one-off items) | 4.8 | 4.9 | (2.0%) | 8.6 | 8.8 | 2.3% | |
1 Excluding computer software
While Ambius experienced a difficult trading environment during the first half of 2010, conditions showed signs of easing in the second half with the division moving into positive revenue growth in Q4, the first time since Q4 2008. Full year revenue declined by Christmas job sales and the UK also benefited from gritting work during the period of heavy snow in December. While these are encouraging trends, they could not compensate for significant portfolio erosion during 2009.
Profit fell by 4.5%, reflecting portfolio reductions offset by cost savings programmes and adjustments in service headcount in line with portfolio movement. Despite a 4.9% reduction in revenue, the North America business delivered a modest 0.6% profit increase, attributable to strong cost control and increased service productivity.
2011 preview
Trading for Ambius in 2011 is anticipated to show some improvements over 2010 especially in gross sales. Retention trends are expected to continue to show modest improvements. The cost savings initiatives implemented in 2009 and 2010 will continue throughout 2011 to support profitability.