norland - Facilities Management

Transcription

N
O
R
L
A
EXCEPTIONAL SERVICE,
EXCEPTIONAL PEOPLE…
Annual review 2010/11
N
D
From fabric…
to fire safety…
From electrical works…
to energy solutions…
From cabling…
to catering…
From plant rooms…
to project management…
From helpdesk…
to heating…
From water supply…
to waste management…
From ICT…
to IT solutions…
From cleaning…
to carpentry…
From air conditioning…
to AV management…
From reception…
to refurbishment…
From plumbing…
to porterage…
Exceptional service,
Exceptional people…
Contents
1 Norland Managed Services
2 Our strategy
3 Financial and operational highlights
4 Chairman’s report
7 Chief Executive’s review
15 Our people
19 Quality, health, safety and
environmental report
23 Business Systems
25 Corporate governance
26 Directors’ biographies
28 Profit and loss statement
29 Consolidated balance sheet
30 Consolidated cash flow statement
31 Five year record
32 Offices
Norland Managed
Services
We are Norland: a leading
provider of hard services led
facilities maintenance and support
services in the built environment.
We work for major national and
global businesses, delivering an
exceptional, single-source solution
to their building management
requirements.
Whether it’s one floor in a multioccupied building, or many
different buildings within
substantial property estates, we
maintain and enhance these
assets for our customers, leaving
them free to focus on their core
business.
Annual Review 2010/11
We use our extensive buying power,
and dedicated supply chain, to
deliver best value whilst ensuring
the highest quality of service,
health, safety and sustainability.
Our key asset is our highly trained
and customer focused people. Their
exceptional performance, delivered
at any time and in any location, is
why our customers choose to stay
with us year after year.
Norland Managed Services 1
Our strategy
Strategy
> Total solutions for customers’
needs in a complete range of
support services.
> Focused on exceptional
performance.
Our behaviours
We have identified the five key
behaviours demonstrated by our
people which are at the core of
our exceptional performance
and we believe these make us
exceptional and our mission
achievable.
Understanding
customer needs
The ability to understand,
anticipate and deliver
customer needs while
building effective
relationships.
> Sell at a price to deliver the
customers’ requirements
without compromising our
quality standards.
> Empowered and accountable
people.
> Customer and employee loyalty.
All of our staff are recruited,
appraised and have their training
needs based upon the Norland
behaviours.
Responsiveness
To positively and
immediately respond to
both internal and external
clients through effective
communication.
Competence to deliver
To maintain up-to-date
knowledge of technical
and professional aspects
of the work and the
ability to apply an
appropriate level of
expertise.
Accessibility
To always be personally
accessible to staff and
customers.
Innovation
To continually review and
improve working practices
and technology used.
Financial and
operational
highlights
Operational highlights
Financial highlights
> Significant contract wins
> Sales at £250.7 million (2010:
including Lloyds Banking Group,
£210.2 million), an increase of
Royal Botanic Gardens Kew
19.3% on last year.
and UBS.
> Underlying profit before tax at
£18.1 million, 7.2% of sales
> Listing within the ‘Sunday Times
(2010: £11.5 million, 5.5%
HSBC Top Track 250’.
of sales).
> Achievement of RoSPA Gold for
> Cash reserves of £26.3 million,
the fourth consecutive year.
with £10.0 million available
> Investment in a new Managed
borrowing facility in place to
Services Division.
provide liquidity and flexibility
> Creation of over 500 new jobs.
for delivering further planned
growth.
> Dividends of £4.8 million paid
in the year: a dividend of £1.0
million paid in September for
the year to 2 April 2010 and an
interim dividend of £3.8 million
paid in December 2010 for the
year to 1 April 2011.
Revenue
£ million
250.7
210.2
190.5
150.8
122.9
06/07 07/08 08/9 09/10 10/11
Underlying profit
before tax
£ million
18.1
11.5
8.4
6.5
7.3
06/07 07/08 08/9 09/10 10/11
Chairman’s
report
Once again I am pleased on behalf of the Board
to report on another good year for Norland.
Our markets have remained very competitive
with customers rightly demanding both value
for money and quality service.
With our continuing commitment to
exceptional people we have been able to
provide the exceptional service required
through attention to detail and ongoing
innovation.
Financial results
Our results reflect the achievement of our
targets across most parts of the business and
our determination to drive the business forward
in pursuit of client satisfaction.
Turnover for the year of £250.7 million
reflects an increase of 19.3% on the previous
year with underlying profit up 56.9% to
£18.1 million. Cash generation of £12.5 million
supports the profitability of our operations.
Market place
A year ago I referred to our customers wish
for market testing and this has been a major
factor over the past year with an increased
level of tendering and, consequently, a
growth in our order book. Extra works and
projects have shown some welcome growth
with further strengthening of our core M&E
services book.
Having secured orders in the FM market
we have now launched a Managed Services
Division to further exploit the opportunities
available and offer this to customers who
wish to have a more comprehensive service
offering.
During the year we have further developed
our services in the wider energy market.
These cover a wide range, including the
reduction in the consumption of carbon,
alternative energy sources, smart metering,
and the use of standby power and renewable
energy.
Our people
We have further strengthened our management
teams by using a more formalised recruitment
process we call assessment centres. This, in
turn, is leading to better qualified and also a
better retention of our staff who are able to
match the customers needs. Our exceptional
people are our greatest asset and we are
determined to improve quality through training
and the continued rigorous selection of new
recruits.
Underlying profit before tax for the
year of £18.1 million, on turnover
of £251 million, represents another
year of significant growth for
Norland.
The Board
All members of the Board have contributed
to the progress and success of the Company
over the past year, and I wish to thank them
for their commitment and dedication to
Norland.
Outlook
Market conditions are better than a year ago,
recessions always bring change and new
opportunities, this one has been no exception.
With our strengthened financial base, strong
order book and new service offerings, we
have now committed the Company to the
next major step forward and I am confident
that our people will sustain the growth and
reach the targets.
Oliver Whitehead
Chairman
Customer retention rate during
the year. Building and developing
relationships with existing customers
is key to Norland’s success.
F R O M FA B R I C …
…TO FIRE SAFETY
Chief Executive’s
review
I am pleased to report that this has been
another successful year for Norland with us
achieving our ninth consecutive year of
profitable growth and increasing our market
share in the ‘hard services led FM market’.
We’ve achieved this by focusing on organic
growth and expanding the services we offer
to existing customers. In 2010/11, this
accounted for 34% of our business growth.
Building and developing relationships with
our existing customers is key to our success
and I am proud to say that we have a 94%
customer retention rate.
We continue to build relationships with
new customers and in the last twelve months
we have established successful working
relationships with over 30 new organisations
from both the public and private sectors.
This growth has led to the creation of over
500 jobs, an opportunity to invest in new
products and continued investment in, market
leading training and development for our
people.
Investment in our people, our products
and infrastructure is essential to provide our
customers with a market leading service. In the
last year we’ve made a number of investments
in the business including:
> investment in six new Business Units and a
new Division;
> investment in a new sales structure,
creating nine new Sales Executive roles
offering Norland sales professionals a clear
and structured career path;
> investment in the projects team: over 40
members of staff are dedicated to projects
and there is now a Head of Projects in each
Business Unit;
> investment in building and developing a
>
>
>
>
>
>
>
new website to reflect the business and
allow customers, potential customers, staff
and potential staff to understand Norland
and what it is that makes us different;
investment in senior management/director
development programmes, to enhance
the skills of our senior team, plus over
£1.5 million investment in staff training;
investment in new offices and meeting
facilities in the Midlands, to accommodate
our growing team and customer base in
the area;
investment in the development of
‘webquote’: an effective and professional
tool to give customers prompt and accurate
quotes for works;
investment in a 100Mb fibre line installed
at the London Head Office to improve
internet access for staff and visitors;
investment in the Norland ‘Chat Room’:
using technology to allow staff to
communicate easily and discuss key
business issues;
investment to upgrade the Norland
Enterprise Resource Planning (ERP) solution
to provide enhanced functionality and
capability and ensuring our systems
support the continued growth of the
Company;
investment in additional staff benefits
including a new private health care scheme,
improved life cover for every staff member,
reduced gym membership rates, ‘Taste
Cards’ for staff (reduced meal prices at key
restaurants across the UK) and access to
the Norland Childcare Vouchers scheme.
Revenue –
Segmental analysis
a
j
b
i
h
g
c
f
e
d
a) Public sector
b) Health
c) Banking and
financial services
d) Data centres
e) Tenanted buildings
and managing agents
f) Retail
g) Professional services
h) Media and
communications
i) Heritage and
entertainment
j) Others
7%
11%
30%
9%
5%
3%
7%
10%
6%
12%
Chief Executive’s
review continued
Highlights of the year
> We maintained full certification to the
>
>
>
>
>
>
>
>
>
QHSE management standards of: ISO 9001
(quality), ISO 14001 (Environment), OHSAS
18001 (Safety) and PAS 99 (integrated
management);
Awarded the RoSPA gold award for the
fourth consecutive year;
521 new jobs created in UK and Ireland;
85% staff retention rate;
increased our customer portfolio to include
UBS, ITV, Vertu, Bloomberg, H3G, Royal
Botanic Gardens Kew, Lloyds Banking Group
and King’s College Hospital;
developed our offering in the education
sector which includes working with new
customers such as London South Bank
University and Suffolk One College;
awarded the Lloyds Banking Group for the
North, the largest staff mobilisation exercise
for Norland with over 170 staff transferring
to us from across the North of England
and Scotland;
won and completed our first integrated
ICT and M&E datacentre fit-out project for
a major defence organisation in Wiltshire;
a further increase in procurement compliance
to 53%;
inclusion in the ‘Sunday Times HSBC Top
Track 250’ Companies for the second year
running. This is the ranking of Britain’s
mid-market private companies.
Investment for future growth
In the coming year we are planning to build
on our growth through significant investment
in the business which, I believe, is the only
way any business can truly grow and expand.
Investment will be focused on our six new
Business Units, in our support services such
as Human Resources, Procurement, Business
Systems and IT. We will also concentrate on
new technology to support our operations
and to improve time-lines and efficiency.
This will give us more time to focus on our
customers, people and new innovations and
so lead to customer retention and growth.
We have launched a new Managed
Services Division this year led by Paul SavilleKing. Through this Division we now offer
additional facilities and services through our
partnership with key FM suppliers. This
investment will give us more time to focus on
our customers, our people and on innovation
enabling us to reach our goal of being “the
market leader in the hard services led FM
market”. This enables us to offer job security
and career opportunities for our people and
provide peace of mind for customers, knowing
that we have the infrastructure to provide a
full service.
The Norland Exceptional Awards
is our way of rewarding staff who
demonstrate the core behaviours.
FROM ELECTRICAL WORKS…
…TO ENERGY SOLUTIONS
Chief Executive’s
review continued
The Managed Services Division
At this year’s annual conference Paul SavilleKing, Managing Director for the new Managed
Services Division outlined his vision for the
business saying that “now is the time for
Norland to offer managed services to our
customers“. He emphasised that our core
offering remains ‘hard services’ but that we
will partner with selected suppliers to offer
soft services, including cleaning, catering and
security to customers where they require these.
Partners have been selected to complement
the Norland offering and mirror the culture
we have worked hard to develop: a culture
where ‘understanding the customers’ needs’,
being ‘accessible’ and ‘responsive’ and driving
‘innovation’ are the priorities.
Norland will offer the market a new
alternative. We already have the management
skills, the business systems, the relationships
and buying power to succeed and we already
do it successfully at customer sites such as
BskyB, T-Mobile, VISA, Vertu and Experian.
In addition, over the last 12 months we have
recruited some of the most talented specialists
in this field to join the new division.
Investing in talent
With our strong growth, a key challenge
has been the ability to attract and recruit
exceptional people. In order to overcome this
and ensure we are able to recruit the best
talent in the market place, we have established
an in-house recruitment team. The team uses
social media and on-line job sites, as well as
more traditional methods, to attract potential
employees. Candidates for managerial posts
now attend assessment days to ensure they
meet the high standards we expect of our
people. Sixty-nine of our new managers have
successfully completed one of these assessment
days and I am pleased to say that of these,
only one then chose not to work with Norland.
Energy
Energy savings continue to be a top priority
for us and our customers. The Energy Matters
programme enables us to offer our customers
a total energy solution.
We have trained over 260 of our engineers
to continuously deliver energy savings. This has
resulted in some exceptional energy reductions
for our customers such as a decrease of 20%
in energy costs at Morgan Stanley in London,
saving them over £400,000 in one year.
For more complex, long-term opportunities
we have trained more than 40 Project Managers
in energy saving modelling and financing
such projects. This focus on the energy retrofit
market has resulted in a 26% increase in our
projects business with significant carbon and
energy reduction projects coming from
customers as diverse as Lloyds Banking
Group, HMCS and Nuffield Health.
With the recruitment of over 20 Energy
Managers during the year, to complement
our Energy Engineers, we have moved from
being purely focused on the demand side to
assisting our customers with their supply side
strategies. This has resulted in several
commissions from organisations such as the
British Museum, H3G, Scottish Power and
BNY Mellon.
Number of consecutive years of
being awarded RoSPA Gold Award.
Number of new jobs created across
the United Kingdom and Ireland.
Chief Executive’s
review continued
As many of our customers are aware there
have been significant changes in legislation
particularly in respect of the Carbon Reduction
Commitment (CRC) and Feed in Tariff for
electricity generated by photovoltaic (PV)
cells. Our customers are more focused than
ever on reducing their carbon footprint and,
even with the reduction in tariff rates, we
have been able to complete our first 50kw
PV installation.
With energy as one of our solutions we are
able to have more strategic conversations with
customers about their facilities and the
operation of their assets. As such, I expect to
see strong continued growth in this sector of
our business.
Supply chain
We have continued to develop the procurement
team and the preferred supplier programme,
both of which are now well established. As
a result of our focus on driving best value
through the supply chain and selecting and
working with best in class suppliers, we have
seen a continued increase in procurement
compliance. This gives better value to our
customers and gives our preferred suppliers
the assurance of guaranteed prompt payments
and a platform from which to grow their
business.
As part of our ‘Roadmap to Exceptional
Procurement’ programme, over the coming
year we will be investing in new procurement
technology that will provide the business with
effective tools to make more informed buying
decisions, making the end-to-end procurement
process faster, simpler and more efficient.
People development
The success of Norland is due to the quality
of the people that we employ. Throughout
this difficult economic period, Norland has
remained committed to training and
developing our people. This year we launched
our twelfth Fast Track ‘Contract Manager
Programme’, our award winning development
programme that takes supervisors and
engineers and gives them the skills to become
a Contract Manager in nine months. Over
130 individuals have participated in this ILM
Level 3 qualification.
I am particularly proud to announce that
this year saw our 200th staff member complete
our ILM Level 2 development programme.
This course gives first-time supervisors and
those that aspire to become supervisors, an
opportunity to learn basic management skills
over an eight week period. For many this is
the first opportunity they have had to learn
core management skills. Whilst this
programme, like all our training, is open to
all staff, including those that transfer to us
under TUPE, this year for the first time we
have run this programme solely for groups of
staff that have transferred to us. By running
these courses we can ensure that all Norland
staff, however they join us, have the core skills
to carry out their role in an exceptional manner.
ICT
The ICT product that was launched last year
continues to differentiate us from our
competitors. In February we expanded the
offering and took on the operational ICT
teams at the Morgan Stanley data centres
in Croydon and Heathrow.
This has proved very successful and we
now have a multi-disciplinary team working
together. We are expanding the operation to
include cabling and infrastructure at the
Canary Wharf campus and throughout the
Morgan Stanley estate across EMEA. The
team operates 24/7, 365 days per year, this
work includes the management of the cabling
infrastructure, the equipment rooms and
communications closets including capacity
management, installation, relocation and
decommissioning of servers and network
equipment, asset management and intelligent
hands.
Conclusion
The coming year will be one that sees
significant investment in the business. This
will create time and space for our managers
and allow them to focus on what makes
Norland unique in the market place: our
exceptional customer service levels, our ability
to innovate and the recruitment and
development of our people.
With our new Managed Services Division
and strengthened core business we now have
the perfect opportunity to provide an
exceptional service solution that customers
want, in a way that competitors are currently
struggling to deliver.
Ian Entwisle
Chief Executive
FROM CABLING…
… T O C AT E R I N G
Our people
The recruitment and development of
exceptional people has been both our biggest
challenge and our greatest success over the
last twelve months. With over 500 new jobs
created, and filled, the majority of our
managers have needed to focus on bringing
new talent into their teams, at some point
during the year.
Although we have seen an increase in the
number of potential candidates looking for
new jobs, we have not seen an increase in
the quality of applicants: talented individuals
are still highly sought after and are not found
in abundance.
To help overcome this we have invested in
new and improved ways of attracting, selecting
and developing new recruits to ensure we have
the best people in the market place today.
A key investment has been to set up a
new in-house recruitment team. The team,
based at our Head Office, works closely with
our managers to understand their needs and
the needs of their customers. The team
source and pre-screen candidates before
providing managers with a carefully selected
shortlist of individuals. This gives our managers
more time to focus on their customers but
allows them ownership of the recruitment
process by being the final decision maker in
the selection of their new team members. One
senior manager said “this has reduced the time
I spend on recruitment by 60% and I know
that the shortlisted candidates I see will be
exceptional. It allows me to choose new
members of staff who exactly fit my and our
customers’ needs”.
Candidates are sourced by the team from
traditional sources such as press adverts, via
our website and careers fairs as well as using
new-media tools such as Linked-In, Twitter and
on-line job sites. This has the advantage of
saving agency fees, ensuring consistency in
the standards of new recruits and reducing
the time our managers spend away from
supporting their customers.
We have also improved the way we bring
talent into the business by developing a new
assessment centre which is now a mandatory
part of the recruitment process for all senior
managers. By using these centres, where we
assess skills, behaviours and attitude, we
greatly increase the chances of recruiting the
right people into our business.
Looking fervently at new ways to attract
and recruit exceptional people in this industry
remains a key objective for the coming year.
Developing our talent
Despite our on-going recruitment campaign
and focus on new starters, core to our success
has been our ability to promote staff from
within, which can only be achieved with
careful planning combined with structured
training.
This year we saw our 200th member of
staff complete the in-house ILM Level 2
qualification, which gives new managers
basic staff supervision skills. We also launched
our twelfth Fast Track ‘Contract Manager
Programme’ – the programme that won the
2010 ‘H&V News’ Training Award’ – which
allows individuals to fast track their career
into management positions. With over 60%
of staff that complete this programme going
on to manage their own contract within
twelve months, this programme continues to
be at the heart of our success by providing
Norland with a succession of new talent.
Our growth has also led to the promotion
of eight individuals into new Business Unit
Leader roles this year, representing 40% of
people in this post. This is the highest number
of senior promotions made in a two month
period in Norland’s history and demonstrates
the benefits of accurate, long-term succession
planning.
We have also had over 600 individuals
transferring to Norland under TUPE (the
Transfer of Undertakings and Protection of
Employment Regulations), including our
largest ever single transfer – 170 people. I am
pleased to report that this year we saw our
first staff member that joined Norland through
TUPE, promoted to the role of Business Unit
Leader, highlighting that our transferring staff
have the same opportunities that we give to
all members of the Norland team.
Our people
continued
Communication
In November, the new Norland website was
launched. The aim of the site is to project the
exceptional nature of our people and service
and this has been done through the use of
Norland staff throughout the site. Careful
design allows users easy navigation through
the site, whilst keeping it clear and simple.
The updated careers page has already attracted
over 1,000 applicants, and the number of
visitors to the site was eight times higher in
its first month than the previous site.
As previously mentioned, many of our staff
join Norland through TUPE. This year we used
new technology to improve the way we
communicate with transferees by developing
a TUPE web-portal. The portal allows
transferring staff to find out about Norland,
understand TUPE and ask questions through
a live 24/7 ‘Q&A’ page. Having this two-way
communication tool, accessible via the web,
has been key to the management of our staff
transfers this year.
Corporate and social responsibility
Over the last year we have worked closely
with many of our customers to build mutually
beneficial relationships with community groups
and charities.
Most recently we have worked with the
East London Business Alliance (ELBA). Their
aim is to get local people from areas of East
London that are most affected by
unemployment back into work. By supporting
ELBA with assessment days and offering work
experience placements we have been able
to find employment for people from these
communities and integrate them into Norland.
I am proud to announce that this year we
will be officially supporting a new, additional
charity, Mentor UK. Mentor changes young
people’s lives by getting them to rethink their
attitudes to drugs and alcohol. Working with
schools and grassroots organisations around
the UK, Mentor promotes cost-effective
projects that have reached more than 80,000
young people, helping them to choose safe,
fun alternatives to binge drinking and drug
taking.
Other CSR events include:
> sponsoring the Lionheart Challenge for
the fourth year running. Lionheart takes
key stage three pupils and gives them an
opportunity to participate in business
projects. In 2010/11 we gave financial
support and over 500 man hours to the
organisation;
> the Diversity Pledge is an industry
recognised, public affirmation of our
commitment to building a more diverse
workforce. Working with our customers,
we have jointly improved the way we
attract new employees;
> financial donations have been made to:
Great Ormond Street Hospital, Samaritans,
Guys’ and St Thomas’ Hospital, the 02
Foundation, Mentor and Lionheart;
> over £10,000 in support for ‘Movember’,
the charity that raises awareness and fights
prostate cancer; and
> over 50 locally organised charity and
community initiatives across the UK have
been undertaken by Norland staff and
have been supported by the business.
Reward and recognition
This year over 150 teams and individuals were
recognised through the ‘Norland Exceptional
Awards’; our scheme that formally recognises
staff who demonstrate the Norland behaviours.
In addition, the fifth Chief Executive Awards
were held and a new award was introduced –
‘People Manager of the Year’. Like all service
businesses, we can only achieve success
through our people and this award has been
designed to recognise the manager that best
demonstrates the ability to recruit exceptional
people, effectively develop their team and
build successors that can move through the
organisation.
The winner of this year’s ‘People Manager
of the Year’ award was Kirsten Murphy, an
Area General Manager in the West London
Business Unit. Kirsten began her career in an
administrative support role, she was in the
first group of graduates to complete the
original Fast Track ‘Contract Manager
Programme’. A great accolade to Kirsten and
to the programme, and a tangible example of
the benefits of investing in our people.
FROM PLANT ROOMS…
…TO PROJECT MANAGEMENT
Quality, health,
safety and
environmental
report
Continuing to raise standards
A focus on ‘exceptional’ is evident from our
record in delivering continual improvement
in quality, health, safety and environmental
management. Our commitments and
accomplishments reinforce the principle that
Quality, Health, Safety and Environment
(QHSE) is at the core of our business.
A number of highlights demonstrate our
innovative culture to raise standards with a
strong belief in “doing what we do well, and
doing it better”.
Particularly notable are:
> achievement of RoSPA Gold for the fourth
consecutive year;
> accreditation by the International Institute
of Risk and Safety Management (IIRSM) of
our modular QHSE training course
‘Integrated Excellence’;
> significantly above average Utilities Vendor
Database (UVDB) scores in our sector;
> improved QHSE performance and compliance
management as measured through our
auditing regime;
> a further improved accident rate – 25%
better than our Health and Safety
Executive (HSE) sector rate; and
> the realisation of a naturally embedded
‘hazard spotting’ culture.
Developing people
Reflecting our mission statement and focusing
on people we introduced new initiatives
designed to develop and enhance QHSE
knowledge. During the year we provided more
training, seminars and workshops than any
previous year.
‘New’ e-learning modules, including Driving
at Work, Environment and Energy Management
provide the whole team with greater awareness
of these topics, strengthening our ethos of
‘safety in a sustainable environment’.
The introduction of our innovative ‘blended
learning’ solution for National Examination
Board in Occupational Safety and Health
(NEBOSH) General and NEBOSH Construction
certificates raised the bar on our standards of
competence and enhanced personal
development opportunities. Some of the
topics delivered have been as seminars and
workshops, many at the specific request of
our clients, include Environment and Waste
Management, Statutory and Gas Compliance,
Electrical Safety and Emergency Planning.
The further development of our ‘QHSE
Champions’ initiative has enhanced workplace
support and provided a positive influence
through greater engagement with our
customers and supply chain.
Percentage above Norland’s HSE
Sector rate for accidents.
Number of consecutive years of
profitable growth by Norland.
Leadership and integrity
Our exceptional people are a key factor in our
success. With a team of QHSE professionals,
technical specialists and ‘QHSE champions’
we provide expertise and leadership for
embedding knowledge and promoting
continual improvement.
Our technical forum actively engages with
leading industry bodies (such as GasSafe,
NICEIC and IET) to provide a high level of
confidence in the integrity of our management
processes and competence standards.
Quality, health,
safety and
environmental
report continued
Collaborative engagement
Delivering exceptional QHSE performance
in our growing business is the result of
commitment and active engagement of the
whole Norland team. By extending these
principles we work collaboratively with our
supply chain to share best practice and
enhance our collective knowledge and ability.
Integral to delivering our improvements
has been the introduction of a programme of
‘Safety Clinics’. These offer an open forum
opportunity to connect our supply chain with
local teams and QHSE specialists.
Technology and innovation
Providing a user friendly interface to QHSE
information and enabling access to real time
performance data is essential to the delivery
of exceptional standards.
Embracing the principle of cloud technology
on a ‘SharePoint’ platform, and working closely
with our in-house IT and Business Systems
specialists we have launched a new QHSE
management portal, QHSE dashboard and
e-Logbooks. These bring together existing
documents and tools with enhanced reporting
services, optimising the principle of a onestop shop.
Monitoring and independent assurance
Maintaining our position as a market leader
reflects the culture of our teams.
Our internal program of monitoring
includes senior management tours, site
inspections and internal audits. The findings
are published and reviewed monthly, resulting
in the setting of objectives and targets to
drive further improvements.
Importantly, independent external audits,
conducted by BSI and other parties, provide
verification of our performance. We have
maintained our sector leading certification to
PAS 99 (Integrated Management), ISO 9001
(Quality), ISO 14001 (Environment) and ISO
18001 (Health and Safety).
The future
We will continue to “do what we do well,
and do it better”.
This will include:
> further embedding collaborative
engagement with the service partners;
> defining standards and adding value by
sharing best practice, with a particular
focus on our Managed Services Division;
> enhancing our offering of Customer QHSE
Solutions; and
> maintaining and further developing our
team’s QHSE competence.
For the second year running, a
new training course developed by
Norland was shortlisted in the H&V
News Awards. Last year, we won
Training Initiative of the Year for its
Contract Manager Programme, this
year we were shortlisted in the
same category for our Energy
Matters Training.
FROM HELPDESK…
… T O H E AT I N G
Business Systems
Delivering exceptional IT
Norland has long recognised that our IT
solutions are a key way of helping us to
effectively manage resources and provide
an exceptional service to our customers. By
investing in solutions specifically designed to
support our approach of providing high
quality service levels, Norland are able to
demonstrate capabilities often unique to
our industry. These often lead to improved
efficiency and safety, as well as new levels
of access to information via our web portals,
mobile technology as well as ‘cloud’ based
services.
By taking this approach, our IT systems can
help us to attract new customers to Norland
as well as helping us to maintain our record
of customer retention.
Investing for the future
A growing business leads to more IT system
users, more customers and more demands for
information. At Norland, we are continually
investing in our IT systems to make sure that
they not only meet the needs of our business
today, but they are also more than capable of
managing our high levels of business growth
without compromising on reliability or data
quality.
For example, we have invested in a world
class Enterprise Resource Planning (ERP) system
that will help us manage our people, supply
partners and our finances. Giving us full
integration across the whole of our business,
our ERP application helps us to make
information available to our people in a format
they can easily use without compromising
on security.
Business driven IT
Most of all, our systems are designed to help
us to make our customers’ lives easier. Indeed,
some of our own ‘Norland Applications’ have
been developed in conjunction with real
customers and Norland operational staff.
Taking this approach has enabled us to
combine industry knowledge with technical
know-how in order to develop a suite of
software that is both innovative and totally
unique to Norland.
The ‘Norland Applications’
> e-Logbooks – a unique web-based
document management application,
helping us to manage key documentation
on behalf of our customers and ensuring
that our high operational standards are
maintained consistently across our
customer estates;
> CERMView – a bespoke application helping
us to utilise and promote the Norland
unique approach to critical engineering
risk management. The CERMView system
has now been in use for around four years
and it’s value has been proven time and
time again;
> Webquote – a simple application giving
our customers a quick and simple method
of requesting extra works quotations and
managing approvals. The Webquote system
has been highly popular and is actively used
by many of our customers; and
> Performance portals – a web-based portal
designed to present performance
management and benchmarking
information on behalf of our customers.
Staff retention rate during the
year. Core to Norland’s success is
the ability to promote staff from
within. Training staff through
programmes such as the ‘Fast Track
Contract Manager Programme
provides the Company with a
succession of new talent.
Business Systems
continued
Computer Aided Facilities
Management (CAFM)
Central to our operational delivery is our
expertise in CAFM systems helping us to
reliably manage planned and reactive
maintenance on behalf of our customers.
Our team have expertise in a number of the
leading solutions and, indeed, we host one
of the market leading systems on behalf of
more than 160 of our customers. Additionally,
Norland has designed an integrated engineers
mobile PDA system utilising the latest in
‘smartphone’ technology.
Robust – Business continuity
We recognise that IT innovation should never
be at the price of compromising on important
aspects such as security and reliability. We
hold a lot of data on behalf of our customers,
as well as that of our own, and so we are
always investing in providing high levels of
resilience and business continuity with regards
to our IT infrastructure. When developing our
own applications, we always insist that our
software standards are strictly adhered to in
order to ensure that our systems are both
reliable and well supported.
Safety is always the priority
Built in to our engineers mobile PDA system
are unique features such as the Norland
health and safety risk assessment, helping us
to maintain the highest levels of safety at all
times. Norland has also developed it’s own
health and safety audit system which is a key
tool for us to ensure that all QHSE aspects are
properly managed across our business.
Norland Managed Services has
again been ranked in the ‘Sunday
Times HSBC Top Track 250’ league
table of leading mid-market private
companies with the biggest sales.
Corporate
governance
The Board
In addition to the Chairman and the executive
team, the Board has two Non-executive
Directors. The Remuneration and Audit
Committees are standing committees of the
Board and have written terms of reference
approved by the Board.
The Chief Executive is responsible for the
running of the Company. The Chairman is
responsible for the running of the Board and
together with the Non-executive Directors
ensures that the executive team delivers the
Company’s plans.
The Board of Directors holds regular meetings
during the year to review the operating and
financial performance of the business.
The Board has a number of matters
reserved for its approval including major
capital expenditure and the development of
financial plans.
The Executive Directors are collectively
responsible for proposing strategy and for
making and implementing operational
decisions. Non-executive Directors are
responsible for exercising their skill and
judgment and contributing to the formulation
of strategy, policy and decision making.
The Board has responsibility for, and
reviews on a regular basis, the Company’s
systems of internal controls. These are
designed to provide reasonable assurance
that assets are safeguarded.
The Board is responsible for identifying,
evaluating and managing risks faced by the
Company which are considered to be
significant. The process for managing these
risks requires the Company to consider
operational, financial, strategic and compliance
risks and the effectiveness of the mitigating
controls it has put in place. The principal risks
identified from this process are recorded on
the Company’s risk register which is maintained
by the Finance Director. This register is
regularly reviewed by the Audit Committee.
Directors’
biographies
Oliver Whitehead CBE
Chairman
Edward Brown
Non-executive Director
Appointed Chairman in January 2008. Member
of the Audit and Remuneration Committees.
Chairman of Minerva plc, Chief Executive
of Alfred McAlpine from May 1993 to August
2003 and from then until June 2007 was
Chairman of Alfred McAlpine. Between March
2004 and February 2005 he was Chairman of
ITNET plc. Formerly Group Chief Executive of
Babcock International Group plc, having
previously been an Executive Director of
AMEC plc and John Laing plc.
Non-executive Director appointed to the Board
in April 2009, member of the Audit Committee
and Chairman of the Remuneration
Committee.
Main Board Director of Rentokil Limited,
following a 25-year career at Rentokil, rising
to the position of Chief Operating Officer, as
well as other non-executive directorships with
Morrison Facility Services, SITPRO (trade
facilitation), Moat Homes, Brogdale Horticultural
Trust and Chief Executive Officer of Morgan
Everett Limited.
Previous experience with British Steel,
Kwikform and, in the insurance sector
specialising in Risk Management, with Bland
Payne and Sedgwick Limited.
Ian Entwisle
Chief Executive
Appointed Managing Director for Norland
Managed Services Limited in 2002, and Chief
Executive in 2007.
Ian was originally appointed to the Board
in 1997.
Prior to 1997 Ian was UK General Manager
of Satchwell Control Systems Limited, before
which he was Divisional Director for the UK,
Middle East and Southern Europe.
Mike Burdett
Non-executive Director
Non-executive Director appointed to the Board
in September 2004. Chairman of the Audit
Committee and member of the Remuneration
Committee.
He is also Chairman of Electoral Reform
Services and Fusion Internet Solutions.
His previous experience includes founding
in 1981 LSI Computer Systems plc, acquired
in 1997 by Scala Business Solutions. He was
President and Chief Executive Officer of Scala
until its acquisition in 2004 by Epicor Software.
Directors’
biographies
continued
Duncan Green
Finance Director
Tommy Meikle
Managing Director, UK Services
Appointed to the Board as Finance Director in
September 2001.
Before joining Norland Managed Services,
Duncan worked for Hays Distribution Services
for five years as Financial Controller. Prior to
this he worked for nine years with Marks &
Spencer in a variety of senior financial positions.
Joined Norland Managed Services as
Operations Manager in 2001 with responsibility
for the Northern region and the Scotland
office.
He was promoted to Regional Manager
for Scotland in 2004, Business Unit Director
for Scotland in 2006, Divisional Operations
Director for the Corporate Services Division in
2007 and to his present position of Divisional
Managing Director for UK Services in 2008.
Tommy was appointed to the Board in March
2009.
Prior to working for Norland, Tommy was
with PME/Carillion in various operational and
management roles.
Rachael Henderson
Human Resources Director
Joined Norland Managed Services as HR
Director and became a member of the Board
in June 2005.
Prior to joining Norland, Rachael worked
for Johnson Controls from February 2001 to
June 2005 as Human Resources Manager.
Before this she worked for HBoS in a range
of HR roles over a seven-year period.
Kevin Lynn
Managing Director, Corporate Services
Kevin joined Norland Managed Services in
March 2009 and was appointed to the Board
in March 2010 as Divisional Managing
Director for Corporate Services.
Prior to joining Norland Kevin worked for
Johnson Controls where he held the position
of Regional Director for North-West Europe.
Prior to this he worked for York International
in various senior management roles.
Paul Saville-King
Managing Director, Managed Services
Joined Norland Managed Services in 2002
and was appointed to the Board in May 2006
as Managing Director, Critical Environment
Services. In April 2011 Paul was appointed to
the position of Managing Director of
Norland’s new Division, Managed Services.
Prior to joining Norland, Paul worked for
Honeywell Controls, a global blue chip controls
company for sixteen years, culminating in
general management of a key subsidiary
acquisition.
Consolidated profit
and loss statement –
Year ended 1 April 2011
1 April 2011
Actual
£000’s
%
Revenue
Gross margin
250,705
100.0
2 April 2010
Actual
£000’s
%
Growth
%
210,212
100.0
19.3
38,613
15.4
31,237
14.9
23.6
(20,534)
(8.2)
(19,711)
(9.4)
4.2
18,079
7.2
11,526
5.5
56.9
Exceptional costs
(4,782)
(1.9)
(5,772)
(2.7)
(17.2)
Profit before taxation
13,297
5.3
5,754
2.7
131.1
Overhead costs
Profit before exceptionals
> Sales increased 19.3% in the year; a compound growth rate of 19.5% over the last five
years.
> Gross margin was 15.4%.
> Exceptional costs relating to FRS20 provisions decreased from £5.8 million in 2010 to
£4.8 million in 2011.
> Profit before tax was £13.3 million.
The figures include results of Norland Managed Services Ltd 100% investment in its Norland Managed
Services (Ireland) Ltd subsidiary. The summary Accounts do not constitute statutory accounts within the
meaning of Section 435 of the Companies Act 2006. Full annual accounts and auditors’ report are
available on request.
Consolidated
balance sheet –
At 1 April 2011
1 April 2011
£000’s
2 April 2010
£000’s
1,925
1,637
9,124
6,255
Debtors
53,288
45,862
Cash at bank
26,315
13,843
Fixed assets
Current assets
Work in progress
88,727
65,960
(72,468)
(45,278)
18,184
20,682
–
(9,893)
18,184
10,789
62
62
Share premium account
3,754
3,754
Capital contribution reserve
6,961
–
Profit and loss account
7,407
8,610
18,184
12,426
Creditors: amounts falling due within one year
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
Net assets
Capital and reserves
Share capital
Total equity
> Work in progress at £9.1 million increased by 46% over the prior year (2010: £6.3 million).
The main driver of this increase was increased additional works volume.
> Debtors remain tightly monitored, with the increase of 16% over the prior year being mainly
down to the increased sales.
> Cash at £26.3 million (2010: £13.8 million) reflects excellent working capital management
and indicates strong quality of earnings in the year.
> Creditors increased to £72.5 million (2010: £45.3 million) with the increase of 160% over
the prior year being mainly down to FRS20 charges becoming payable within one year and
the growth of trade creditors and accruals in line with sales volume increase.
Consolidated cash
flow statement –
Year ended 1 April 2011
Net cash inflow from operating activities
1 April 2011
£000’s
2 April 2010
£000’s
20,612
14,001
71
26
–
(1)
71
25
Returns on investments and servicing of finance
Interest received
Interest paid
Net cash inflow from return on investments
and servicing of finance
Taxation paid
Capital expenditure and financial investment
(2,492)
(2,274)
(954)
(318)
Equity dividend paid
(4,765)
(4,534)
Net cash inflow before financing
12,472
6,900
–
–
12,472
6,900
Financing
Increase in cash
> A strong cash inflow was generated from operating activities of £20.6 million (2010: £14.0
million). There has been continued focus on debt and work in progress management in the
year to maintain and enhance this.
> A net cash inflow of £12.5 million was delivered (2010: £6.9 million) after charging
dividends paid of £4.8 million (2010: £4.5 million).
Five year record
2011
£000’s
Revenue
2010
£000’s
2009
£000’s
2008
£000’s
2007
£000’s
250,705 210,212 190,493 150,793 122,922
Underlying operating profit (note 1)
18,079
11,526
8,404
7,266
6,456
Profit before tax
13,297
5,754
7,508
5,561
4,330
4,426
4,405
8,764
9,096
5,289
Cash
26,315
13,843
6,943
6,356
6,226
Equity shareholder’s funds
18,184
12,426
15,179
16,400
9,196
Operating assets employed (note 2)
Return on operating assets employed (note 3)
Turnover per employee
Note 1 – Underlying operating profit
Operating profit
Plus FRS20 charge
Plus stamp duty
Less other income
Less profit on sale of building
Note 2 – Operating assets employed
Net assets
Less cash
Less deferred tax asset
%
%
%
%
%
420.8
261.7
95.9
79.9
122.1
£000’s
£000’s
£000’s
£000’s
£000’s
117
111
114
110
106
2011
£000’s
2010
£000’s
2009
£000’s
13,200
5,727
7,278
4,801
5,799
2,333
78
–
–
–
–
(34)
–
–
(1,173)
18,079
11,526
8,404
2011
£000’s
2010
£000’s
2009
£000’s
18,184
12,426
15,179
(26,315) (13,843)
(6,943)
(1,638)
(657)
–
(3,329)
(3,329)
Plus corporation tax
2,868
806
420
Plus FRS20 accrual
7,733
9,983
4,094
78
–
–
3,638
–
–
4,426
4,405
8,764
Less unpaid share capital
Plus stamp duty
Plus dividend proposed
(1,890)
Note 3
Being underlying operating profit/operating assets employed.
Offices
Head Office
Norland Managed Services Ltd
City Bridge House, 57 Southwark Street
London SE1 1RU
Midlands
Coleshill House, 1 Station Road
Coleshill B46 1HT
Telephone: 020 7871 9100
Telephone: 01675 432 150
Scotland
Suite 3G, International House
Hamilton International Technology Park
Stanley Boulevard, High Blantyre G72 0BN
Telephone: 01698 404720
Bristol
South West Business Unit, Unit 22
Avon Valley Business Park, St Annes Road
St Annes, Bristol BS4 4EE
Luton
960 Capability Green, Luton LU1 3PE
Telephone: 01582 635081
Telephone: 0117 972 4806
Dublin
Norland Managed Services (Ireland) Ltd
Centrepoint House
Rosemount Business Park
Blanchardstown, Dublin 11
Telephone: 01635 277999
Leeds
Unit 1 – First Floor, The Antler Complex
Bruntcliffe Way, Morley
Leeds LS27 OJG
Telephone: 0113 259 7136
Telephone: 00 353 (0)1 829 3987
Manchester
North West Business Unit, Trafford Plaza
Seymour Grove, Old Trafford
Manchester M16 OLD
West London Office
West London Business Unit
115 Whitby Road, Slough
Berkshire SL1 3DR
Telephone: 01753 698850
Northumberland
Unit 1, Suite 8, Meadowfield Court
Meadowfield Estate, Ponteland
Northumberland NE20 9SE
Telephone: 01661 825010
Telephone: 0161 877 0218
Thames Valley Business Unit
Swan House, Northcroft Lane
Newbury, Berkshire RG14 1BN
From fabric…
to fire safety…
From electrical works…
to energy solutions…
From cabling…
to catering…
From plant rooms…
to project management…
From helpdesk…
to heating…
From water supply…
to waste management…
From ICT…
to IT solutions…
From cleaning…
to carpentry…
From air conditioning…
to AV management…
Totally Chlorine
Free
ISO14001
Fully recyclable
Printed on revive 50:50 Silk, a recycled paper containing 50%
recovered waste and 50% virgin fibre and manufactured at a mill
accredited with ISO14001 environmental management standard.
From reception…
to refurbishment…
The pulp used in this product is bleached using a Totally Chlorine Free
(TCF) process.
From plumbing…
The use of the FSC logo identifies products which contain wood from
well-managed forests certified in accordance with the rules of the
Forest Stewardship Council.
to porterage…
Designed by Benjamin Rowntree Design
www.benrown.co.uk
Telephone: 020 7357 0700
Exceptional service,
Exceptional people…
N
O
R
L
A
EXCEPTIONAL SERVICE,
EXCEPTIONAL PEOPLE…
www.norlandmanagedservices.co.uk
Company number: 1799580
N
D

norland - Facilities Management

Transcription

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