- 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
Market conditions improved marginally in northern Europe, the UK and North America during 2010. However, they remained extremely challenging in the southern European economies, and the Caribbean countries experienced slightly less buoyant growth than in previous years.
| Fourth quarter | Full year | ||||||
|---|---|---|---|---|---|---|---|
| £m | 2010 | 2009 | Change | 2010 | 2009 | Change | |
|
At 2009 constant exchange rates: |
|||||||
| Revenue | 123.8 | 124.0 | (0.2%) | 511.1 | 512.7 | (0.3%) | |
| Adjusted operating profit (before amortisation and impairment of intangible assets1 and one-off items) | 23.4 | 23.3 | 0.4% | 98.1 | 89.2 | 10% | |
| At actual exchange rates: | |||||||
| Adjusted operating profit (before amortisation and impairment of intangible assets1 and one-off items) | 23.3 | 23.3 | – | 98.0 | 892 | 9.9% | |
1 Excluding computer software
Revenue in the Pest Control division declined by 0.3%. This was largely due to an 8.5% decline in the UK & Ireland Hygiene business where a 21% improvement in terminations failed to compensate declines in portfolio and contract sales. Consistent with contract structure, lower revenue from the Libyan contract following the move in Q1 to locally resourced service provision also impacted revenue growth. Europe, North America, the UK and East Africa & Caribbean (EAC) businesses all recorded revenue growth. North America performed particularly well, increasing revenue by 5.2%, attributable to new contract sales, reduced terminations and 7.5% growth in the products distribution business. The turnaround of the UK Pest Control business has been a particular success story of 2010, with the business moving into positive growth (up 1.7%) versus a prior year decline of 5.8%. Overall, Europe was flat, with modest growth in Northern Europe largely offset by declines in France, Spain, Portugal and Greece. Revenue in EAC grew by 7.9%.
Profit rose by 10.0% with strong performances across most areas, most notably UK Pest which grew profit by 21.1% reflecting strong jobs, service productivity and lower overheads. Growth in Europe increased by 13.1%, impacted largely by Spain (+189.1%), Switzerland (+19.3%) and Germany (+15.1%) with all countries showing positive growth. Growth in Spain was supported by an insurance receipt of £1.1m in 2010 and the impact of a number of unusual costs taken in 2009. Profit in North America rose by 13.7% on solid revenue growth, while EAC and South Africa grew by 10.2% and 6.3% respectively.
2011 preview
We expect conditions in 2011 to be similar to those experienced in 2010 with the exception of Libya, where the current outlook is extremely uncertain.