- 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
Economic conditions in 2010 remained weak, with customers continuing to look for
cost
reduction opportunities.
| Fourth quarter | Full year | ||||||
|---|---|---|---|---|---|---|---|
| £m | 2010 | 2009 | Change | 2010 | 2009 | Change | |
|
At 2009 constant exchange rates: |
|||||||
| Revenue | 148.6 | 136.3 | 9.0% | 556.4 | 547.6 | 1.6% | |
| Adjusted operating profit (before amortisation and impairment of intangible assets1 and one-off items) | 9.1 | 8.5 | 7.1% | 25.9 | 21.3 | 21.6% | |
| At actual exchange rates: | |||||||
| Adjusted operating profit (before amortisation and impairment of intangible assets1 and one-off items) | 9.2 | 8.5 | 8.2% | 25.9 | 21.3 | 21.6% | |
1 Excluding computer software
Despite challenging market conditions Facilities Services delivered an excellent performance on profit and cash in 2010, with an improving revenue line as the year progressed. Revenue grew 1.6% year on year, 9.0% in Q4, reflecting the contribution from Knightsbridge Guarding. Underlying revenue, excluding Knightsbridge, declined by 2.2% but grew by 1.6% in Q4, aided by a strong performance in Catering.
During the year Facilities Services continued to drive margin improvement and reduce its cost base through initiatives to improve operational efficiency, including an organisational simplification in Q4. Contract wins, margin improvement and cost reductions all contributed to strong profit growth of 21.6%. Excluding Knightsbridge, profit growth was 18.8%.
2011 preview
Uncertainty remains around the UK economic outlook for 2011. Consumer confidence remains weak in an environment of rising taxes and rising inflation. Further, the UK is braced for considerable public sector spending cuts. Despite this obvious economic uncertainty, the division is well placed to support its cost conscious customers through the provision of innovative facilities services. The acquisition of Knightsbridge Guarding in 2010 has also strengthened the division’s capability in security, further supporting its fully integrated facilities offering.
Central costs
| Fourth quarter | Full year | ||||||
|---|---|---|---|---|---|---|---|
| £m | 2010 | 2009 | Change | 2010 | 2009 | Change | |
|
At 2009 constant exchange rates: |
|||||||
| Central costs | (4.5) | (8.0) | 43.8% | (33.9) | (42.4) | 20.0% | |
| At actual exchange rates: | |||||||
| Central costs | (4.5) | (8.0) | 43.8% | (33.9) | (42.4) | 20.0% | |
Central costs for the year were £8.5m lower than in 2009 primarily due to lower incentive costs and the impact of central accruals made in 2009.