Half Year Review
CHIEF EXECUTIVE OFFICER'S REVIEW
The first half of 2010 has been marked by increasing pressure on costs with local authorities seeking to make savings in advance of expected cuts in public spending.
NSL is well placed to assist with this, with our value proposition for clients aimed at helping them deliver services in more cost effective ways.
This was demonstrated effectively by the London Borough of Ealing, which appointed NSL to a ten-year contract after a market testing exercise which demonstrated that we could save them a potential £8 million over the course of the contract, compared to an in-house service.
NSL also consolidated its market leading position in on street parking enforcement, retaining large contracts with London Boroughs Camden and Enfield, and the City of Westminster, the UK’s largest parking operation. We also added new parking contracts in Cambridgeshire, the London Borough of Bexley, and the London Borough of Tower Hamlets.
The company’s growth into new markets continued with the acquisition of the Patient First ambulance business in February, and the roll out of a controlled parking zone in Abu Dhabi, where NSL is a joint venture partner involved in the implementation of parking controls across the city.
Our position as industry leader was cemented at the British Parking Awards, where NSL’s subsidiary the Project Centre was honoured in the Environment Award for its work with Islington council on car clubs – while the Group was shortlisted 11 times.
OUTLOOK
The remainder of 2010 is likely to show more growth in NSL's business, especially in BPO, as we demonstrate to local authority clients the cost-efficiencies we can deliver at our Business Process Outsourcing operations in Croydon and Coventry.
We expect the trend for the rest of 2010 and into 2011 to be an increased focus on outsourcing as a means of providing cost efficiencies in the public sector while protecting frontline services. I believe that NSL’s business is in a good position to provide greater savings for local authority clients, through the economies of scale which we can provide as the UK’s largest processor of PCNs, and the UK’s largest provider of on street parking enforcement.
Mark Underwood
Chief Executive Officer
CHIEF FINANCIAL OFFICER'S REVIEW
2010 has seen a continuation of the above budget performance enjoyed throughout 2009. Trading for the first six months to June produced the following key highlights:
1. Turnover growth of 9.4% on continued activities to £78.8m
2. EBITDA growth of 44.9% on continued activities to £7.1m
3. Overall return on sales increasing to 9.0% on
4. Cash generation well ahead of target ensuring continued investment in capital expenditure and full compliance with all banking obligations
5. The acquisition of Patient First in February 2010 which was integrated into the Group within 90 days and all identified synergies fully delivered
Our financial K.P.I’s for the six months to June each year and full Year for 2009 are as follows:-
£m 2010 2009 Growth % 2009 FY
Turnover – Continuing operations 78.8 72.0 9.4% 144.9
Turnover – Discontinued operations 0.0 7.0 12.2
EBITDA – Continuing operations 7.1 4.9 44.9% 11.9
EBITDA – Discontinued operations 0.0 0.3 1.0
EBITDA % on Continuing operations 9.0% 6.8% 8.2%
STEVE DOLTON
CHIEF FINANCIAL OFFICER
Notes:
The financial K.P.I's are a summary of the position of the NSL Services Group Ltd (“the Group”) and therefore do not constitute financial statements as defined by section 240 of the Companies Act. The K.P.I's are not audited and do not contain sufficient information to allow a full understanding of the results and state of affairs of the Group. Further as they have been prepared for information purposes only they do not contain the extensive notes normally required under accounting reporting standards.
In preparing these results the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2009.
This document is for information purposes only and should not be relied upon. The Group gives no warranty or guarantee of the accuracy or completeness of the information presented in this document. Accordingly, regardless of the form of action, whether in contract, tort or otherwise, and to the extent permitted by applicable law, the Group and its directors, officers and employees accept no liability of any kind and disclaim all responsibility for the consequences of any person acting or refraining from acting in reliance of this document.
