EXCEPTIONAL SERVICE, EXCEPTIONAL PEOPLE... Annual Review

Transcription

1 EXCEPTIONAL SERVICE, EXCEPTIONAL PEOPLE... Annual Review

2 Contents 1 We are Norland 2 Operational highlights 3 Financial highlights 4 Our mission & strategy 5 Our business 6 Chairman s report 8 Chief Executive s review 12 Corporate Services 14 UK Services 16 Critical Environment Services 18 International 20 People 22 Projects & capital works 24 Quality, health, safety & environmental report 25 Energy 26 Procurement 27 Business systems 28 Corporate social responsibility & sustainability 29 Corporate governance 30 Directors biographies 32 Consolidated profit and loss statement 33 Consolidated balance sheet 34 Consolidated cash flow statement 35 Five year record 36 Offices ibc Glossary The services we offer: Mechanical & Electrical Energy Facilities Mgt Cleaning Critical Environments Fit-Out Services Fabric Catering ICT International Projects Security Front-of-House Grounds Waste Mgt Our mission: To be a market leader through exceptional service and exceptional people The sectors we work in: Data Centres Education Financial Markets Government Healthcare Heritage Industrial Manufacturing Managing Agents Media Pharmaceutical Professional Services Public Buildings Entertainment Public Sector Retail Utilities Norland Managed Services Annual Review

3 WE ARE NORLAND We wanted to find an organisation whose level of expertise in their field matches our own. Brian Pell Director of Operations NEC Group We are a leading provider of facilities, energy and project management services operating from a strategic network of regional offices throughout the UK, Ireland, Europe and the US. Our integrated delivery of hard and soft services drives performance and best practice across each service stream. We work for major national and global businesses delivering an exceptional, singlesource solution to their building infrastructure management requirements. Whether it s one floor in a multi-occupied building or many different buildings within a substantial property estate, we maintain and enhance these assets for our customers leaving them free to focus on their core business. We manage 4.5 million square feet of data centre facilities which makes us the market leader for FM in white space. We have an extensive project management team for large capital works and specialist energy management advisors working alongside our contract teams. 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 is why our customers choose to stay with us year-on-year. Norland Managed Services Annual Review

4 OPERATIONAL HIGHLIGHTS We were named Contractor of the Year at the 2013 CIBSE awards for our work with a global telecommunications provider to retrofit a large office building and a call centre. We won the contract to maintain Astrium s manufacturing facilities. Our Critical Environment team will provide facilities and engineering maintenance services to Astrium s clean-room manufacturing facilities. Such controlled environments must be managed to tight tolerances. Our first group of apprentices have qualified as engineers following an intensive, four-year apprentice training scheme. Integral to our growth plans and overall sustainability approach, we now have 45 apprentices at various stages of qualification and learning. Despite the current recession, our business in Ireland has grown by 40% over the past year. The market has been receptive to our solutions. Appointed by Santander to deliver improvements in the way the bank s facilities are managed and maintained. Norland are providing TFM including engineering, cleaning, security equipment, fabric, pest control, landscaping and compliance. One of 13 suppliers in the Mayor of London s RE:FIT energy efficiency refitting programme. RE:FIT covers over 400 buildings involving over 59 organisations. Norland has jumped 34 places and is now ranked 102nd on the Sunday Times HSBC Top Track 250 league table, which ranks Britain s leading midmarket private companies with the biggest sales. We continue to invest in our expanding US data centre business from where we offer our market-leading maintenance service for critical environments. We continue to pave the way in QHSE and for the 6th successive year have been awarded a RoSPA Gold award for safety. 2 Norland Managed Services Annual Review

5 FINANCIAL HIGHLIGHTS Sales at million (2012: million), an increase of 23% on last year. Underlying operating profit of 23.7 million, up from 18.2 million in Ï Ï +23% +30% Revenue million Revenue by segment % Underlying operating profit million Revenue by division % Cash million Norland Managed Services Annual Review

6 OUR MISSION & STRATEGY To be a market leader through exceptional service and exceptional people Our strategy Total solutions for customers needs in the hard services-led FM market Focused on exceptional performance Sell at a price to deliver the customers requirements without compromising our quality standards Empowered and accountable people Customer and employee loyalty Our behaviours We have identified the five key behaviours demonstrated by our people which are at the core of our exceptional performance. We believe these make us exceptional and our mission achievable. All of our staff are recruited, appraised and have their training needs based upon the Norland behaviours Understanding customer needs The ability to understand, anticipate and deliver customer needs while building effective relationships 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 4 Norland Managed Services Annual Review

7 OUR BUSINESS Corporate Services UK Services Critical Environment Services Resident teams Resident on-site teams provide mechanical and electrical engineering, building fabric maintenance and a portfolio of soft services which we either self deliver, or deliver as a managed service We have a number of specialist units targeted at specific markets including education, health, real estate and stadia Our Services A mobile maintenance workforce The ideal solution for clients requiring a high-performing FM service with a mix of mobile and resident engineers Our national capability is delivered locally from 13 regional hubs and includes a full set of soft services Depending on the needs of each client, we can manage the contract from any client site or, if preferred, out of one of our regional offices. Either way our leading-edge logistics and technology platform gets Norland s engineers to where they need to be fast. Specialist 24/7 technical support We maintain the mission-critical environments and infrastructure facilities fundamental to business; facilities whose failure would have a major impact on an organisation s brand through loss of profit, revenue and reputation > Critical Environment Risk Management (CERM ) > CERMview : secure portal for managing risk > Complete ICT & M&E fit-out > Data centre fit-out Energy Services Projects ICT Fabric Services Fit-Out Services International Services Mechanical & Electrical Services Soft Services Complementary specialisms Norland offers a full suite of facilities, energy and project management services. We provide mechanical & electrical engineering, building fabric maintenance and all soft services (front-of-house, cleaning, security, grounds, waste mgt, pest control, catering etc) delivered as a managed service. We also provide specialist maintenance services for critical environments such as data centres and clean-rooms. Norland s integrated FM solution is a best-in-class service. This flexible model gives customers choice even down to which supply partners they work with. That way the customer stays in control and gets to swap out any part of the contract if they feel it is underperforming Norland Managed Services Annual Review

8 CHAIRMAN S REPORT The strength of our order book, our exceptional people and our range of services combined with our strong balance sheet gives me confidence that our growth will continue I am pleased, on behalf of the Board, to report on another good year for Norland, against a background of difficult economic conditions. Financial results We have delivered turnover for the year of 385 million representing an increase of 23% on the previous year, with underlying profit up 30% to 23.7 million. The economic climate continues to be challenging and the level of tendering, which we have referred to over the last couple of years, continues with customers looking for improved services at lower costs. Our focus has therefore been, not only on winning new contracts, but on continuing to build long-term professional relationships with our clients and providing them with innovative and costeffective solutions. As a result, our customer retention rate has remained at more than 90%. Our two-pronged approach of cost containment and the delivery of extremely high levels of service have translated into significant levels of new contracts. Business approach Last year I reported that two new business units had been created in the healthcare and university sectors and I am pleased to confirm that our continuing work in these areas has paid off with further contracts from these sectors. This year we were appointed by Astrium, the number one company in Europe for space technologies, to provide facilities and engineering maintenance services at their manufacturing facilities in Stevenage and Portsmouth. The manufacturing sector is an emerging market for us with increasing numbers of companies with critical facilities recognising the power of our critical environment offer. In my last review I referred to our intention to support our customers at an international level. I am pleased to confirm that we have now opened our first office in the USA and we have already won significant contracts there as a result. We will be extending our presence in other countries to further support our clients on a global basis. On that note, this year has also been excellent for our Irish business where, despite the difficult economic conditions, the business has grown 40% over the past year. Last year I referred to the merger of Reliance Facilities Management, a leading provider of integrated facilities management services to customers across the private and public sectors. This merger has meant we have been able to expand our managed services offer providing the ability for Norland to act as a single source provider for all essential building services. The Reliance FM contracts are now fully novated and integrated into the divisional structure. Our people We could not have achieved this year s excellent results without our teams of people responsible for delivering an exceptional service to our customers. We continue to invest in our staff via a series of training programmes from induction right through to our Tomorrow s Leader programme. Our Management and Development programme is recognised by the Institute of Learning and Management (ILM) and continues to receive industry recognition. This year, for the second year running, it has been shortlisted in the Contribution to Training category of the 2013 Building Controls Industry Association Awards. I believe our commitment to what is an historic and ongoing strategy of staff development is clearly supported by the results we continue to achieve. It is also essential that we provide our workforce with good processes and advanced technology to enable them to perform effectively and efficiently. Outlook The company continues to be strong financially, with a clear strategy for the future. Whilst the market conditions continue to be challenging, the strength of our order book, our exceptional people and our range of services combined with our strong balance sheet gives me confidence that our growth will continue. Paul Lester Chairman I believe our commitment to what is an historic and ongoing strategy of staff development is clearly supported by the results we continue to achieve 6 Norland Managed Services Annual Review

9 Norland provides behavioural analyst company, dunnhumby, with a bundled service of hard FM, fire & security, building fabric maintenance and soft services. In Norland we have found a company that gives us scale and demonstrates the values that makes it an ideal partner within our FM model. Simon Booth, UK & Europe Facilities Manager, at dunnhumby Integrated hard & soft services Norland s comprehensive suite of FM services includes M&E and fabric maintenance as well as soft services such as cleaning, security, catering, pest control, waste management, moves and changes, front-of-house and garden services We deliver our soft services, either ourselves or as a managed service drawing on our team of best-in-class suppliers. This flexible model gives customers choice even down to which supply partners they work with. That way the customer stays in control and gets to swap out any part of the contract if they feel it is underperforming Norland Managed Services Annual Review

10 CHIEF EXECUTIVE S REVIEW Norland jumped 34 places in the Sunday Times Top Track 250 listing this year 534 I am delighted to say that 2012/13 has been another successful year for Norland. Despite a tough economic climate, we remain ahead of our plan, turning in strong growth and once again increasing our market share. We believe that overall the market is becoming increasingly polarised. Whilst some companies remain focused purely on price, with others we are witnessing a flight back to quality. This trend means a growing number of companies are now prioritising quality as one of their main requirements. Quality delivery is exactly what sets us apart and it s our ability to meet those needs by providing an exceptional service which is largely responsible for Norland s 23% growth this year. Whilst Norland has always been known for the strength of its hard services offering I am really pleased to say that we have won significant FM business over the last 12 months. One example is our work with Santander to deliver significant improvements in the way that the bank s facilities are managed and maintained. We are providing Santander with an integrated FM solution comprising engineering, cleaning, security, fabric maintenance, pest control, landscaping and compliance across a portfolio of 24 UK corporate offices. We will continue to invest in this area as an essential part of our overall service offering. We ve secured and grown some really exciting business in the year including Astrium, the NEC Group and Birmingham Airport. We have been appointed as one of 13 suppliers in the Mayor of London s RE:FIT energy efficiency retrofitting programme for public sector buildings in London and also to the NHS framework for energy efficient lighting which is estimated to save the NHS millions of pounds. Our international business has gone from strength to strength over the last 12 months and we will continue to invest in, and expand, this area of our business. Our US and Irish critical environment offer appeals to our data centre customers which often have a global footprint. We also secured some larger UK-wide contracts with multiple sites. These clients like how our CAFM and helpdesk work together with our hand-held technologies to deliver new efficiencies. Structuring the business As a result of our Business Unit structure we are now more agile, able to scale our business as needed and respond to new opportunities in the marketplace. Each of our business units now has project managers, energy advisors and soft services specialists so that all of our clients get the benefit of local expertise in these important areas. We have continued to invest in Norland s Major Projects business which has seen solid growth. A high-profile project in this area is our work with a global telecommunications provider to retrofit a large office building and a call centre. This project won the accolade of CIBSE Contractor of the Year. Norland continues to pave the way in QHSE and for the 6th successive year we have been awarded a RoSPA Gold award for safety. We ve introduced new technology in this area in the form of a QHSE dashboard and doubled the number of on-site QHSE audits. We ve also been recognised by the industry for extending QHSE best practice throughout our entire supply chain. 8 Norland Managed Services Annual Review

11 Paving the way in QHSE We were awarded the RoSPA Gold Medal award for the 6th consecutive year of exceptional health and safety performance. Norland has one of the UK s largest teams of Gas Safe registered engineers who are qualified to work safely and legally on gas appliances Energy Savings Our 300 energy engineers and consultants help our customers negotiate their way through the mire of energy legislation, cost increases and worry about supplies. They deliver quick payback and long-term savings day in, day out Norland Managed Services Annual Review

12 CHIEF EXECUTIVE S REVIEW CONTINUED New business areas In his address, our chairman mentioned our work with Astrium. Space and satellite technology is an exciting sector and one in which we have a highly compelling offer in the form of our market-leading service for critical environments. The Astrium contract joins other new business secured in this sector and we will continue to invest to expand our offering to industrial and manufacturing facilities. Last year we created new Business Units in healthcare, education and managing agents. These units have grown strongly in the year by focusing on the needs of their respective markets. Recent successes include Jones Lang LaSalle, Anglia Ruskin and London South Bank University. Business systems We continue to seek out ways to apply technology to improve the customer experience. We have rolled out Concept Evolution, a state-of-the-art Computer-Aided Facilities Management system allowing us to dynamically manage PPM and reactive works. Our new Performance Portal provides customers with all the information needed to run an FM contract. We continue to invest in our CERM critical engineering platform to make this a truly global product. Further development of our hand-held technologies has enabled us to provide an exceptional FM service to companies with large and dispersed estates. Jones Lang LaSalle instructs Norland on behalf of more than 30 separate clients. Norland manages M&E, fabrics, projects and energy services across more than 60 sites. The broad property portfolio includes shopping centres, commercial buildings and retail parks, as well as iconic buildings such as Bridgewater Place in Leeds and Barbirolli Square in Manchester Looking ahead This coming year we will continue to carefully listen to our customers and be uncompromising in our work to exceed their expectations and retain their custom. The current climate means there is no room for complacency so we must ensure we are truly deserving of our customers business at every level. Ultimately, quality service must remain an integral part of how we deliver our services to each customer. To do this we will continue to structure the business as close to the customer as possible, invest in exceptional operations and provide world-class support and systems to our business units. We will also continue to invest in our supply chain partners, QHSE, systems and, above all, our people, to deliver a great service that enables us to continue to grow. Ian Entwisle Chief Executive We will continue to structure the business as close to the customer as possible, invest in exceptional operations and provide world-class support and systems to our business units 10 Norland Managed Services Annual Review

13 Depth & breadth Norland is strong across many sectors with market specialists covering healthcare, education, heritage, data centres, manufacturing and research as well as retail, logistics, stadia, financial, media, managing agents and real estate... Planned, preventative M&E maintenance and reactive works Robust working practices adhere to the Health Building Note publications (HBN) and Health Technical Memoranda (HTM) We work with owners, their agents and tenants to create and maintain the most compelling, safe and compliant office space possible Norland Managed Services Annual Review

14 CORPORATE SERVICES Norland provide British Airways with a professionally-managed service at Heathrow terminal 3 & 5, Gatwick, regional sites in Manchester & Newcastle as well as BA s corporate offices and data centres Norland s Corporate Services capability is our proposition for large corporate organisations requiring a resident and dedicated management and FM team on-site. We provide a full range of FM services including mechanical and electrical engineering, building fabric maintenance and a portfolio of soft services which we either self-deliver, or deliver as a managed service. Clients may wish to take M&E maintenance or a bundled package of hard and soft services. Our integrated FM service is a flexible model giving our customers choice even down to which supply partners they work with. Corporate Services includes a number of vertical market specialist teams such as education, healthcare and managing agents. Our services include: > mechanical and electrical > planned and preventative > all soft services > energy efficiency services > extensive web-based information systems > building fabric maintenance Corporate Services has had another successful year in which we have worked closely with both new and existing customers to make a real difference to their businesses. We are proud about the contribution we make to Norland s strong name in the market and our absolute focus on exceptional service. Customer interaction The total commitment we show to our client base has continued to attract new customers. Our strong reputation for working in public-facing environments was a key factor in the NEC Group appointing us in a multi-million contract. We are providing services to, not only the NEC itself, but also the International Convention Centre, the LG Arena and the National Indoor Arena. No two days are the same at these venues and it is very exciting to be part of such an amazing team. Industry knowledge Over the last year we have continued to develop our business offer in a number of markets including managing agents, healthcare and education. We already work with some of the most prestigious properties in the world and we have recently added to this portfolio with our appointment by 30 St Mary Axe (the Gherkin) to provide services to their tenants and to the landlord, Knight Frank. Education is another sector in which we continue to go from strength to strength. As an example we secured a contract with Southampton Solent University for their 32 academic buildings and 8 halls of residence. As with many of our clients, Norland will be looking to introduce a range of innovations. 12 Norland Managed Services Annual Review

15 CORPORATE SERVICES CONTINUED Customer loyalty A true test of how well any organisation is doing is arguably its level of customer retention. We pride ourselves on delivering exceptional service which, in turn, translates into high levels of customer loyalty. We have many examples of customers like KPMG with whom we have worked since 2004 and who have recently renewed and expanded their contract with us after a competitive bid. People and processes Health & Safety remains vitally important. We have run a number of safety clinics and log-book workshops and by having a safety champion at each site helps to ensure we embed QHSE in everything that we do. We continue to recruit the best and are proud that all the Corporate Services business unit leaders have been promoted into their roles from within the company. All our staff benefit from the companywide commitment to coaching and training. As a result of our willingness to always go the extra mile, total commitment to compliance and not ever being satisfied with one-size-fits-all, Corporate Services has made a significant contribution to the company s overall growth and provided our customers with dedicated quality services for their businesses. Norland clearly understands it s all about the customer experience. We wanted to find an organisation whose level of expertise in their field matches our own in events and Norland certainly provide this Brian Pell, Director of Operations NEC Group Kevin Lynn Managing Director Corporate Services Good quality, well-maintained buildings are essential to excellence in teaching and research. Good FM is key to attracting new, and satisfying existing, students Norland Managed Services Annual Review

16 UK SERVICES I would like to express the thanks of the NHS Blood and Transplant facilities team... for the fantastic work and response provided by you and the whole Norland team to the major flooding incident last week. The time to bring the facility back into operation has been remarkable Wayne Tannahill, Regional Estates and Facilities Manager NHS Blood & Transplant Norland s UK Services capability is the ideal solution for clients with multiple, dispersed sites and who require a high-performing FM service with a mix of mobile and resident teams. Our national capability is delivered locally from 13 regional hubs. Depending on the needs of each client, we can manage the contract from any client site or, if preferred, out of one of our regional offices. Either way our leading-edge logistics and technology platform gets Norland s engineers to where they need to be fast. We offer M&E and building fabric maintenance right through to TFM including a full set of soft services like security, cleaning, waste, front-of-house, catering and grounds maintenance. Our services include: > mobile engineers & on-site team if required > latest handset & mapping/logistics technology > real-time customer management information > planned and preventative M&E > soft services and integrated FM > national coverage across UK & Ireland > 12 regional hubs > energy managers/engineers New wins Over the last year we have continued to strengthen our national service capability to meet the needs of those clients with hundreds of sites spread throughout the country. As a result we were appointed by a high-profile, public sector client with 386 different sites located throughout the UK. The mix of buildings within this client s estate is varied and includes four data centres with specialist maintenance needs. The contract gave us a wonderful opportunity to showcase the full scope of our offering. The healthcare sector continues to go through considerable reform. We have helped our NHS clients to novate over to the new NHS property services body set up by the Department of Health and maintained the high levels of service they have come to expect. Nationwide coverage We have reduced the amount of time our engineers spend on the road. More sophisticated route planning has led to labour savings, reduced fuel costs and less wear and tear. It has also allowed us to meet increasingly tight SLAs and provide better value and keener pricing to our customers as well as reduce our attendance times and improve first-time fix rates. Capital works Projects work has taken off this year with more and more of our clients wanting to make use of our detailed knowledge of their estates in the planning and execution of large capital works. One key success was a 3.5 million capital project for an NHS body along with the Everything Everywhere project for which we won CIBSE Contractor of the Year. People We have continued to invest in our people. Sixteen members of the UK Services team have taken part in the Institute of Leadership management awards and we have invested in five apprentices which are currently working their way through the Norland-wide scheme. 14 Norland Managed Services Annual Review

17 UK SERVICES CONTINUED Systems We have taken full advantage of Norland s commitment to business systems. The contract management portal provides our clients and contract staff with single log-on to key management documents and access to other Norland systems. Originally implemented for one of our large retail accounts, we have further developed it for other clients including Everything Everywhere and Scottish Power. Webquote is Norland s well-regarded and easyto-use system for preparing quotes for extra works. We have tailored the system to the needs of a number of UK Services clients who have been using it extensively and added some additional functionality, including the ability to attach specifications and drawings and improvements to the way information is exported. Mobile technologies and PDAs are vital to our ability to provide a responsive service and we have made a number of upgrades in this area too. State-of-the-art handset technology provides our engineers with the information they need and works with CAFM in real-time Industry participation Norland is a sponsor of the Home Counties region of the British Institute of Facilities Management (BIFM) with one of the UK Services Business Unit Directors acting as a BIFM non-executive Board Director. This increases our voice in addressing key issues in the industry and driving forward best practice. Controlled from a central helpdesk, Norland s fleet of mobile engineers provide national coverage throughout the UK and Ireland Tommy Meikle Managing Director UK Services Norland Managed Services Annual Review

18 CRITICAL ENVIRONMENT SERVICES Norland has vast experience of managing data centre facilities and importantly understanding the critical importance of zero downtime in these environments Stuart Sutton, CEO Infinity SDC Our Critical Environment Services capability maintains the mission-critical environments and infrastructure facilities fundamental to business; facilities whose failure would have a major impact on an organisation s brand through loss of profit, revenue and reputation. Often 24/7 operations, our highly skilled teams oversee and maintain the complex technical infrastructure of leading banking and financial institutions, data centres, manufacturing facilities, research centres and broadcasting production. Our services include: > Critical Environment specialists > Critical Environment Risk Management (CERM ) > CERMview : secure portal for managing risk > Complete ICT & M&E fit-out > Data centre fit-out Focus Effective CERM Consistency Compliance Right Culture Visibility Critical Environment Risk Management (CERM ) is about instilling the right culture and behaviours to effectively mitigate risk Learning During 2012/13, the Critical Environment Services division continued to build upon its reputation of being a premium provider for mission-critical environments. We support some of the world s leading enterprise data centres and co-location facilities, global banking headquarters and leading research and manufacturing facilities. New initiatives Steady growth this past year is set to continue as we expand into new market areas. This year has seen Norland advance in the critical manufacturing and networks market, with both Astrium and Ericsson choosing Norland to provide their facilities maintenance. We are now offering a mobile version of our critical service which will help customers with geographically-diverse critical environments to maintain their sites. ICT fit-out and converged services We are investing in major Information Communication Technology (ICT) fit-out projects led by our dedicated ICT projects team. Our largest fit-out to date has been a 3.5 million programme within a global financial services data centre. The project included the design, procurement, installation, testing, and project management of the complete ICT infrastructure. Our ICT fit-out service is part of our converged CE360 service which integrates mechanical and electrical maintenance with the management of the IT infrastructure. This converged approach provides the command, control and monitoring necessary to manage all aspects of the data centre. Human factors We continue to develop our product; our people. This year has seen some of the highest training hours completed by our employees. We pride ourselves on our tailored training programmes for engineers operating in critical environments. We offer specific courses such as Human Factors training, as well as a broad range of technical skills training. We also partnered with the Uptime Institute to deliver Accredited Tier Rating training. Our working methodology is based on risk 16 Norland Managed Services Annual Review

19 CRITICAL ENVIRONMENT SERVICES CONTINUED management, with our bespoke CERMview risk management platform being used across our customer portfolios to help reduce operational risk by up to 80%. Industry participation We continue to influence and work with the critical market, hosting various seminars around the subject of tier rankings and risk mitigation. These have been attended by key industry peers, with speakers including the Uptime Institute, Speechly Bircham and Terry Vergon. We look set to continue these seminars in 2013/14. Finally to keep as close as we can to our customers, we have opened up a new office in the Thames Valley an area with the highest concentration of data centres, IT and computing companies in Europe. This allows us to continue to provide excellent customer service, with our Norland infrastructure more accessible than ever. Norland has considerable experience in data centre mobilisation... Norland fit excellently with our own team of professionals. Richard Borton Operations Director Ark Continuity Tony Smith Managing Director Critical Environment Services A global financial services company selected Norland for the 3.5m fit-out of their new data centre. The 14 week project covered design, installation, testing and project management of a complete ICT infrastructure We are experts in working in controlled settings where the environment must be managed to tight tolerances Norland Managed Services Annual Review

20 INTERNATIONAL We operate bespoke country-specific delivery models, taking the existing success of Norland s customer experience and tailoring it to local markets. Norland s International business has implemented this approach across Europe and the US and as a result, it has made a positive contribution to the group s impressive overall growth. In Ireland, the company provides world-class facilities maintenance services to the large number of major multi-national businesses the Republic attracts. We provide a pan-european service via our carefully-selected, like-minded, FM partners based in EMEA. Additionally, Norland has taken its market leading services for critical environments to the US a country which has only recently begun to really embrace the benefits resulting from specialist services within the data centre market. Our capabilities meet the requirements for innovation, proactivity, flexibility and transparency expressed by US clients. The international business includes a broad portfolio of ICT, FM, data centre management, project management and M&E services. We continue to see a trend towards procuring data centre services on an international basis. Norland is uniquely placed to meet that requirement Our business operations in both Ireland and the US saw a very successful year and significant growth. Internationally, Norland ensure strong governance, compliance, supply chain performance and risk management whilst delivering operational consistency and enhanced service levels across geographical boundaries. We employ state-of-the-art business systems and IT to give customers total visibility across their global estate. Country-specific Norland works to country-specific delivery models which build on the existing success of the UK business and tailors it to the needs of other national markets. Our unique offerings, IT systems, world-class QHSE and supply chain practices are all rolled out in these new jurisdictions. Norland is well known for a culture which empowers its staff. Strong management and incountry leadership has helped to establish the same cultural qualities in Ireland and in the US. Ireland Our Irish business grew by approximately 40% this year with significant customers added in the manufacturing, technology, banking, software, data centre, commercial offices and professional services sectors. We offer the full Norland portfolio of services from our offices in Ireland. This year, growth has come from FM, engineering, major projects and energy management. The market has been highly receptive to Norland s focus on innovation and solutions built around quality. We have continued to raise our profile through supporting key industry conferences and trade shows on topics such as energy management, data centre best practice and FM models. We have also worked to proactively build strong industry relationships. We were founding exhibitors and influencers of the FM Ireland Show and we also opened and chaired the Data Centre Ireland conference. 18 Norland Managed Services Annual Review

21 INTERNATIONAL CONTINUED USA Our US business has been running for over a year and is rapidly establishing itself with some high profile global organisations in its customer base. Norland identified an unsatisfied niche in the market for world-class facilities management and engineering services in the US. It was clear that the existing data centre capacity in the US was not adequate to cope with the region s increasing need for growth in technology services. As a result the US saw a 50% growth in data centre facilities in We understand the opportunities and the appetite for our market-leading engineering and maintenance solution for data centres in this region. Historically, the market has lacked a nationwide quality service provider. Our market research showed a clear need for greater levels of innovation, proactivity, flexibility and transparency. Customers wanted access to a broader data centre specific solution encompassing ICT, FM, data centre operations and engineering support. We have headhunted local data centre talent with a good track record in the industry and trained them in those processes, services and people behaviours which set us apart. As a result we have seen strong order book growth and have a very healthy pipeline going into next year. We have every confidence about our ability to seize the opportunities presented by the US and become the market-leading national provider of mission critical support solutions. Our membership of ECSynergy means Norland is well-placed to meet all our clients needs on a pan- European basis. ECSynergy is an international FM consortium from which we partner with likeminded, best-in-class FM providers across 38 countries. Paul Saville-King Managing Director International Norland Managed Services has won a major contract to manage critical environment services for a 120 megawatt data centre. The appointment will involve support for a 700,000 square foot facility for a Fortune 10 company Norland Managed Services Annual Review

22 PEOPLE Supporting our business growth with exceptional people continues to be a key priority. We focus on three main areas: recruitment, talent development and retention. Business as usual In the process of taking on new contracts it is vital that Norland successfully integrates transferring staff into our business. Over a third of all our new employees have joined us through the TUPE process so we make every effort to ensure our approach is structured, sensitive and well communicated. Our tailored transition programme engages early with employees and uses a joinedup approach with clients and supply partners. The feedback we get from transitioning employees is very positive and the vast majority of employees remain with us after they have transferred. Recruiting & developing exceptional people Norland s business model is all about local empowerment and accountability and this has always proved to be highly attractive to potential employees seeking real responsibility in their careers. Over the last 12 months we have developed the way we recruit our contract managers and apprentices. Use of assessment centres and personality profiling have helped us to identify people that match the skills we seek and who emulate our Norland behaviours. We have continued to invest heavily in training and development. Fourteen management programmes were run throughout the year and over 180 managers participated. We have also built on the success of our Apprentice Programme and now have 45 apprentices across the business. We continue to develop today s employees for tomorrow s opportunities. We understand the importance of good succession planning and we have an impressive history of developing talent from within the company. Our talent programmes include a new fast-track management programme which help us to meet future needs. A new dimension The increasingly international dimension to our business has brought new challenges. Countryspecific people policies replicate the Norland way of working and provide flexibility for country leadership to meet local and cultural needs. We have recruited in-country human resource specialists to help manage the bedding-in of the Norland culture. UK employees are sent on secondments to show the Norland way and our induction programme for international managers includes visits to the UK and buddying with experienced Norland managers. Retention & reward Our Exceptional Awards programme has given public recognition to seven finalists who were rewarded for their stand-out achievements. The Chief Executive Awards has also been a huge success this year, with 15 winners recognised for a broad range of achievements across the business. In addition we have held a number of Celebrate Success events to reward our teams for what they have achieved. We place a good deal of emphasis on ensuring Norland is a great place to work. Our new benefits portal has been hugely successful and is available to all employees and we are currently preparing for our auto enrolment obligations, which take effect from 1st November. The year ahead One of the main reasons why our business is successful is because of the quality of our people. The only way we will maintain our competitive edge is by continuing to recruit the best people and provide them with good career progression and development opportunities. With a number of new initiatives already underway, coupled with our ultimate aim of being the employer of choice, we believe we are in a good place to support, what will no doubt be, another very successful year for Norland. 20 Norland Managed Services Annual Review

23 Apprentices Our development programmes have been shortlisted for a number of awards including the 2013 Building Controls Industry Association Awards and H&V News awards where one of our apprentices was highly recommended in the Apprentice of the Year category Over a third of our employees join us through the TUPE process and the feedback we get about our structured process is very positive 14 management programmes were run throughout the year and over 180 managers attended Norland Managed Services Annual Review

24 PROJECTS & CAPITAL WORKS Norland s Project Management capability is a design, construction, fit-out and refurbishment service available across all of the markets that Norland delivers its maintenance services. It covers projects valued from 30,000 to over 12 million. Norland is the CIBSE Contractor of the Year for 2013 for its work with a digital communications company to retrofit a large office and call centre needs of their eventual occupier. We employ the BSRIA soft landings approach in conjunction with Building Information Modelling software to bridge the gap between design and construction and ease the project s transition into use. Strong growth During the past financial year our project business has shown strong growth. Market conditions for the project industry as a whole remain tough. But our focus on innovative and cost-effective solutions is ensuring that the business is well placed for the medium term. We have a successful history of delivering projects up to a value of 2 million. These still form the core of our project delivery business. CIBSE Contractor of the Year This year we were delighted to be made Contractor of the Year by CIBSE for our work with a global telecommunications giant to retrofit a large office building and a call centre. Norland handled the design, all aspects of the Construction Design Management (CDM) and building control. The project was managed as a phased implementation of works across two buildings, 8,500m 2, five floors and 1,000 staff. It included replacement of an existing HVAC system, new lighting, ceilings, lifts and the introduction of a heat recovery system, environmentally-friendly coolants and fresh air movement. Norland also designed and built a new video conferencing suite for the client and fully decorated both buildings. Major fit-out An early success was winning the first stage fit-out of an 11,475ft 2. data centre hall on the Cobalt Data Centre campus. This included ground work to construct the plant bases, chiller gantry and plant installation as well as wall erection, fitting of doors and isolation chambers. We installed raised access floors with plinths to accept the CRAC units and assembled and tested LV switchgear. The project also included installing, integrating, testing and commissioning the mechanical and electrical systems. With its focus on risk management and stringent adherence to best practice QHSE, Norland CONSTRUCT is particularly suitable for capital works involving live environments. Norland CONSTRUCT We are regularly being approached by customers wanting us to apply the Norland disciplines to higher-value, more complex projects. This year we invested in a major project capability for the design, installation and commissioning of large capital works. We call it Norland CONSTRUCT. What makes Norland CONSTRUCT different is the philosophy we adopt which essentially takes a whole life perspective to the project and ensures that facilities are specified for usability, efficiency and operability and designed to suit the real life 22 Norland Managed Services Annual Review

25 Norland offers a unique combination of data centre fit-out project capabilities with engineering risk management services and facilities management. Norland has been able to demonstrate very clearly how its systems and processes will support our high-quality environment and deliver value to our tenants. Guy Marsden, Director Highbridge At Norland we design and build differently. We emphasise in-use performance and bridge the gap between design and delivery Our approach seamlessly integrates the project into the ongoing maintenance regime Norland Managed Services Annual Review

26 QUALITY, HEALTH, SAFETY & ENVIRONMENTAL A world-class culture We have delivered another year of strong QHSE performance. We retained our full suite of international standards verified by our UKAS accredited body, BSI. These were PAS 99; an integrated management system for managing all our certified systems; ISO 9001 for quality management; ISO for environmental management and BS OHSAS for occupational Health & Safety. We also won a RoSPA Gold Award for six consecutive years of exceptional Health & Safety. More and more of our customers are asking for security services as part of an integrated FM solution and we became part of the Security Industry Association (SIA) approved contractor scheme. This accreditation provides purchasers of private security services with independent proof of a contractor s commitment to quality. Our Electrical, Refrigeration and Gas Safe registrations were retained. In fact Norland has one of the UK s largest teams of Gas Safe registered engineers who are qualified to work safely and legally on gas appliances. We have continued to extend QHSE best practice across our supply chain. Our initiative Managing Risk a Joint Responsibility came to the attention of the industry with Norland reaching the finals of a number of industry awards. The Scottish Power contract team successfully retained the British Safety Council International award. Practical solutions, exceptional service, exceptional people QHSE is at the core of our business. It is a culture forged from the Norland behaviours and all our teams play a significant role in maintaining our continued success. Over the last 12 months we have continued to expand our international offer. It has therefore been important to ensure that the team based in the USA have had the same robust QHSE systems and processes available in the UK and Ireland. We have worked with our in-house business systems team to build a new US EHS Gateway using the very latest applications. This web-based system provides a portal for our US team to view and access all things QHSE. This is backed up by a comprehensive suite of e-learning tools. We have built our own bespoke database to capture the specific federal and state-wide QHSE requirements which exist in the US. We have also rolled out a set of QHSE applications which enable us to share data in a real-time live environment with our customers and suppliers. Specialist support and communications Engaging our people, and our suppliers, has been key to sustaining our success in QHSE. Our QHSE Champions initiative has resulted in more proactive hazard identification and, importantly, the ability to manage and control those potential risks. To share experiences, we publish updates and case studies which are available as briefings from our QHSE intranet and we introduced the EHS blog to provide a live global environment for our teams to interact on line. The future sustainable success With solid foundations to build on, the coming year will see us launch a number of new innovations: > intelligence-led QHSE performance forecasting > an integrated hazard analysis application > deployment of a behaviour-based positive reinforcement process We will continue to actively engage employees via our QHSE Champions initiative as well as via team training, workshops and seminars which foster best practice. This is all designed to sustain our exceptional service and exceptional people. Steve Booker Director of QHSE 24 Norland Managed Services Annual Review

27 ENERGY Twelve months on since the last annual review and the energy world feels in many ways, as though it is in an even more difficult place. Market round up The Energy Bill is still awaiting Royal Assent. The goal is to find ways to achieve a stable electricity supply as coal-fired power stations are retired and this delay is causing significant uncertainty for many of our customers. Utility prices are still increasing. In March 2013 the Office for Budget Responsibility (OBR) warned that consumers could be hit with bigger than normal increases. Finally, perhaps more worryingly, Ofgem has stated that the combination of UK power plants closing, foreign gas supplies shrinking and demand rising, has made British energy reserves uncomfortably tight. From a carbon management and reduction perspective, whilst carbon allowances are stable this year, the government is proposing that CRC phase 2 prices increase to 16/tonne. The last CRC league table was published to little fanfare, but the government is keeping its focus on greenhouse gases by legislating that all UK companies on the London, European & New York stock exchanges commence reporting on them from 1st April. Helping our clients The Norland energy team has been helping our customers negotiate their way through this mire of legislation, cost increases and worry about supplies. We achieve all of this through the application of our extensive technical knowledge, practical building expertise and understanding of the carbon management business to deliver both economic and environmental benefits to our customers. We have invested in the necessary systems, processes and people to enable us to provide sustainable solutions for all our customers needs in the built environment. Our Energy Engineers work on our customers sites to reduce energy and carbon emissions through the optimisation of heating and cooling controls. We now have over 300 Energy Engineers delivering quick payback and long-term savings for our customers day in and day out. The Energy Bureau provides 24/7 energy reporting, monitoring & targeting, bill validation and utility procurement. In addition, we can actively manage your energy consumption by continuously monitoring your facilities and, if an agreed energy level is exceeded, we can raise an immediate alarm for our Energy Engineers to investigate. Our project teams will design, build, operate and maintain significant energy infrastructures. We can also arrange the funding if required, be it government or private. We are not embedded with any one supplier and so we are able to produce innovative and effective solutions to meet our customers requirements. Energy frameworks Norland has been chosen as a RE:FIT framework partner following a rigorous tender process. RE:FIT is the Mayor of London s innovative scheme to reduce carbon emissions in Greater London. Norland has also been successful in winning the NHS CPC framework to finance and supply LED lighting to over 50 hospitals in the North East of England. By continuously reviewing technologies and innovation, we have been able to advise many customers on the most effective approaches to gain the most significant savings and quantifiable paybacks. For example using EC fans in critical data space has enabled customers to save an astonishing 50% against previous technologies. Energy management is fully embedded in all that we do and Norland will continue to seek to be a market leader. Gary Perry Director of Sustainability, Energy & Projects Norland Managed Services Annual Review

28 PROCUREMENT Over the last year we have taken supplier relationship management (SRM) to an entirely new level within the industry. We looked closely at successful models used in manufacturing where long and complex supply chains, similar to the FM industry exist. Our approach involves close engagement with our supply chain and the adoption of a collaborative partnership. We will even assist some of our preferred suppliers with aligning their businesses more closely with our own to help improve efficiency and streamline the customer experience. Efficiencies An example is the work we did with Tyco Fire & Integrated Solutions, the UK s largest and longestestablished fire protection company. There was a very clear potential to develop our relationship with Tyco and work strategically to deliver benefits to both parties and ultimately our customers. These are benefits that are over and above what we would typically receive from a standard agreement and included a closer focus on cost and service delivery. We have taken a similar approach with other partners including one global organisation that is now able to meet two hour response times to Norland sites when the industry standard is four. Norland is receiving recognition for its supply chain approach. We have been featured in FM Journal and Supply Management magazine and also been shortlisted in the Industry Collaboration category in the H&V awards. Supply partner event Our annual supplier event in October was, once again, a huge success with over 700 delegates attending. This included 65 exhibitors and over 200 customers. We invite our suppliers to exhibit to all our contract teams. Given Norland empowers its contract managers as business managers with decision-making responsibility, it is vital they are completely familiar with the full strength of the supply chain at their disposal. The day included a number of speakers, including a keynote from a motivational speaker on Health & Safety which was well received by the audience. Empowerment We now have a well-established Procurement capability across the company. In keeping with our company culture, which is focused on downstream decision-making, we have trained many of our managers so that the business can manage its own procurement. This has been highly successful with customers seeing the benefit of contract managers at their site with the appropriate skills to make the right procurement decisions. Technology Over the last 12 months we have implemented Ariba, a leading-edge procurement technology. The new platform means we are able to manage risk throughout our supply chain. It is also used by our business managers to provide feedback on supplier performance. Because this feedback is visible to both suppliers and Norland staff, it is resulting in improved service levels and provides an incentive for both parties to up their game. What is quite unique is the way we are using Ariba as a sourcing tool. We have implemented it as a tool for our business managers to use. The tool helps our managers to make appropriate sourcing decisions on behalf of our customers and we can use this as a means of demonstrating to our customers how we are achieving best value on their behalf. Our procurement approach continues to evolve and adapt as the requirements of Norland and our customers change. Because our supply chain is critical to our business, building relationships and collaborating remains a founding principle. Rachel Lee Group Procurement Director 26 Norland Managed Services Annual Review

29 BUSINESS SYSTEMS Keeping the focus on the customer At Norland, we believe that IT innovation is a key way of supporting our customers. That is why in recent years we have developed a unique suite of software apps, designed to put the customer in control. Our IT and Business Systems specialists always strive to understand the unique requirements of our customers and have a wealth of experience in application integration, bespoke reporting and all aspects of Computer-aided Facilities Management (CAFM) systems. Our goal is to meet and, if possible, exceed expectations so that IT becomes an enabler and never a barrier. Safeguarding your assets Our CAFM application underpins the planned maintenance and reactive service provided to many of our customers. Over the last 12 months Norland has updated this vital system, combining the latest CAFM application with Microsoft collaboration, business intelligence and mobile technology solutions. However, it s not just about the technology it s the people who use it who make the difference. Over the last year we have put all of our CAFM users through specific training and given them the support they need to help them get the most out of the new system. Our dedicated in-house team of CAFM specialists are also on hand to support our employees and customers in using this software. Efficiency through innovation Norland Apps are built in-house to deliver a distinctive customer experience. This can clearly be seen in the high customer uptake of our Webquote system or by the excellent feedback we have received about our Performance Portal and elogbooks apps. This year has seen the introduction of our new Project Delivery System (PDS) which has quickly become a vital tool in helping us to support our successful projects business. This new system helps us to ensure effective risk management and project review processes throughout the life of a project. We deployed an etrading solution which enabled us to improve our handling of supplier payments. These efficiency gains are already improving speed and accuracy at the same time as reducing running costs. Resilience and reliability All of our business-critical applications are hosted at a highly secure and resilient data centre facility complete with ISO & ISO accreditation as well as 24/7 monitoring & alerting. Sophisticated software is used to continuously check the health of our critical IT infrastructure and performance of our systems. Over the last 12 months, Norland has significantly upgraded its, already strong, IT resilience and business continuity with a full disaster recovery (DR) site and real-time data replication. All DR and Business Continuity plans have been reviewed and revised accordingly. Scalability and flexibility The selection of software tools and applications is taken with the utmost seriousness at Norland, as we believe only well-engineered solutions and technology components will enable us to support the needs of a fast-growing business such as ours. By sticking to a well-defined technology strategy, our IT platform has been robust and flexible enough to support our move into new international markets and manage numerous growth challenges within the company. Business-driven IT All Norland IT and Systems projects are led by a senior executive, helping us to ensure that these projects are kept focused on business need throughout the entire project lifecycle. Our Prince2 certified Project Managers provide continuous monitoring of costs, timescales and quality of project deliverables, preventing any serious overrun and maintaining the focus on delivering genuine business benefit. Our CAFM application helps us to manage more than 190,000 customer assets spread across approximately 4,000 buildings in the UK alone. Norland Managed Services Annual Review

30 CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY Business Integrity Sustainable Development Community Involvement Our People Supply Chain Our Customers Integrity, honesty and fairness are requirements for all Norland employees at all levels across the company. We expect no less of those with whom we choose to do business. Our policies, processes and controls have been designed to ensure our standards are understood, followed and maintained. Norland believes that sustainable development is the key to future prosperity. We are committed to balancing short and long-term interests and integrating economic, environmental and social priorities into our business decision-making. Norland continuously seeks to find ways of contributing positively to the well-being of the communities in which we, and our customers, work. We are motivated by making a difference and by building strong community relationships. Norland is an equal opportunity employer. We oppose and take positive steps to eliminate all discrimination on the grounds of colour, nationality, gender, sexual orientation, age, status, religious belief or disability. We encourage equal opportunities for all employees and promote their development to enable them to make the most of their talents within an inclusive working environment. Norland adopts the highest standards of personal integrity and honesty in selecting and working with suppliers and sub-contractors. We work closely to establish good, commercial long-term relationships based on fair practices, innovation, costs and added value and we expect them to adopt sound social, environmental and ethical policies. We compete for business and deal fairly and ethically with customers. Through exceptional performance and growth we have created a profitable business. Our long-term profitability and the strong financial foundation this provides are essential, both to the achievement of our own goals and our ability to maintain the capacity to fulfil our responsibilities to customers. 28 Norland Managed Services Annual Review

31 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. Nonexecutive 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. Norland Managed Services Annual Review

32 DIRECTORS BIOGRAPHIES Paul Lester, CBE Chairman Paul Lester, CBE, is Chairman of Greenergy International, Survitec Group, John Laing Infrastructure Fund, Norland Managed Services, Peverel and Parabis. He is also a Non-executive director of Invensys plc. Previously Chief Executive of VT Group plc, the support services company. Paul also held the position of Group Managing Director, and Chief Executive of Graseby plc following senior management positions at Schlumberger and the Dowty Group plc. He is a Chartered Engineer, a Fellow of the Institute of Mechanical Engineers and was awarded an Honorary Doctor of Laws and is a lifelong West Bromwich Albion supporter. Edward Brown Non-executive Director Appointed to the Board as Non-executive Director in April Chairman of the Remuneration Committee and member of the Audit Committee. Main Board Director of Rentokil Ltd, following a 25 year career at Rentokil, rising to the position of Chief Operating Officer, as well as other Nonexecutive directorships with Morrison Facility Services, SITPRO (trade facilitation), Moat Homes, Brogdale Horticultural Trust and Chief Executive Officer of Morgan Everett Ltd. Previous experience with British Steel, Kwikform and, in the insurance sector, specialising in risk management, with Bland Payne and Sedgwick Limited. Duncan Green Finance Director Appointed to the Board as Finance Director in September Before joining Norland Managed Services, Duncan worked for Hays Distribution Services for five years as Commercial Director. Prior to this he worked for nine years with Marks & Spencer in a variety of senior financial positions. Ian Entwisle Chief Executive Appointed Managing Director for Norland Managed Services Ltd in 2002 and Chief Executive in Ian was originally appointed to the Board in Prior to 1997 Ian was UK General Manager of Satchwell Control Systems Ltd, 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 Chairman of the Audit Committee and member of the Remuneration Committee. He is also Chairman of the Electoral Reform Services, Fusion Internet Solutions and a Non-executive director of Health Watch, West Sussex. His previous experience includes founding LSI Computer Systems plc in 1984, acquired in 1997 by Scala Business Solutions. He was President and Chief Executive Officer of Scala until its acquisition in 2004 by Epicor Software. 30 Norland Managed Services Annual Review

33 DIRECTORS BIOGRAPHIES CONTINUED John Maidment Group Services Director John joined Norland Managed Services in 2002 and was appointed to the Board in February Prior to joining Norland, John held the position of Sales Director for G S Hall Limited and Specification Sales Manager for Toshiba Carrier UK. 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. Tommy Meikle Managing Director, UK Services 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 Tommy was appointed to the Board in March Prior to working for Norland, Tommy was with PME/Carillion in various operational and management roles. Paul Saville-King Managing Director, International 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 as Divisional Director for Managed Services. Prior to joining Norland, Paul worked for Honeywell Controls, a global blue chip controls company for 16 years, culminating in general management of a key subsidiary acquisition. Tony Smith Managing Director, Critical Environment Services Tony joined Norland Managed Services as Contract Manager in March 2003 and was appointed as Divisional Managing Director for Critical Environment Services in March Tony was appointed to the Board in September Prior to joining Norland, Tony worked in the manufacturing industry for Honeywell Controls. Norland Managed Services Annual Review

34 CONSOLIDATED PROFIT & LOSS STATEMENT YEAR ENDED 5 APRIL April March 2012 Actual Actual Growth 000 s % to sales 000 s % to sales % Revenue 384, , Gross margin 54, , Overhead costs (39,427) 10.2 (34,752) Profit before exceptionals 15, , Exceptional costs (1,375) 0.4 Profit before taxation 14, , > Sales increased 23.3% in the year; a compound growth rate of 20.6% over the last five years. > Gross margin was 14.3%. > Exceptional costs relating primarily to the restructuring of RFM. > Profit before tax was 14.1 million. The figures include results of Norland Managed Services Ltd 100%-owned subsidiaries: Norland Managed Services (Ireland) Ltd, Norland Managed Services (Netherlands) BV, Reliance Facilities Management Limited, Norland Managed Services (Germany) GmbH, and Norland Managed Services Incorporated. The summary Accounts do not constitute statutory accounts within the meaning of Section 435 of the Companies Act Full annual accounts and auditors report are available on request. 32 Norland Managed Services Annual Review

35 CONSOLIDATED BALANCE SHEET YEAR ENDED 5 APRIL April March s 000 s Fixed assets 5,891 2,478 Current assets Work in progress 10,546 10,343 Debtors 87,609 73,501 Cash at bank 21,670 12, ,825 95,986 Creditors: amounts falling due within one year (87,643) (70,567) Total assets less current liabilities 38,073 27,897 Creditors: amounts falling due after more than one year (15,024) (8,066) Net assets 23,049 19,831 Capital and reserves Share capital Share premium account 3,754 3,754 Capital contribution reserve 6,961 6,961 Profit and loss account 12,272 9,054 Total equity 23,049 19,831 > Debtors remain tightly monitored, with the increase of 19.2% over the prior year being mainly down to the increased sales. > Cash at 21.7 million (2012: 12.1 million) reflects excellent working capital management and indicates strong quality of earnings in the year. > Creditors increased to 87.6 million (2012: 70.6 million) with the increase of 24.2% over the prior year being mainly due to the growth of trade creditors and accruals in line with sales volume increase. The figures include results of Norland Managed Services Ltd 100%-owned subsidiaries: Norland Managed Services (Ireland) Ltd, Norland Managed Services (Netherlands) BV, Reliance Facilities Management Limited, Norland Managed Services (Germany) GmbH, and Norland Managed Services Incorporated. The summary Accounts do not constitute statutory accounts within the meaning of Section 435 of the Companies Act Full annual accounts and auditors report are available on request. Norland Managed Services Annual Review

36 CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 5 APRIL April March s 000 s Net cash inflow from operating activities 12,823 6,275 Returns on investments and servicing of finance Interest received Interest paid Net cash inflow from return on investments and servicing of finance Taxation paid (1,214) (5,280) Capital expenditure and financial investment 2,624 (8,449) Equity dividend paid (4,777) (6,898) Net cash inflow/(outflow) before financing 9,528 (14,173) Financing Increase/(decrease) in cash 9,528 (14,173) 34 Norland Managed Services Annual Review

37 FIVE YEAR RECORD s 000s 000s 000s 000s Revenue 384, , , , ,493 Underlying operating profit (note 1) 23,669 18,240 18,079 11,526 8,404 Profit before tax 14,068 10,343 13,297 5,754 7,508 Operating assets employed (note 2) 17,531 13,917 4,296 4,405 8,764 Cash 21,670 12,142 26,315 13,843 6,943 Equity shareholder s funds 23,049 19,831 18,184 12,426 15,179 % % % % % Return on operating assets employed (note 3) s 000s 000s 000s 000s Turnover per employee Note 1 Underlying operating profit 000s 000s 000s 000s 000s Operating profit 14,003 10,001 13,200 5,727 7,278 Plus FRS20 charge 6,958 8,066 4,801 5,799 2,333 Plus stamp duty 78 Less other income (34) Less profit on sale of building (1,173) Plus amortisation 336 Plus mobilisation costs 1,080 Plus US costs 1, ,669 18,240 18,079 11,526 8, Note 2 Operating assets employed 000s 000s 000s 000s 000s Net assets 23,049 19,831 18,184 12,426 15,179 Less cash (21,670) (12,142) (26,315) (13,843) (6,943) Less deferred tax asset (1,345) (868) (1,890) (1,638) (657) Less unpaid share capital (3,329) (3,329) Plus corporation tax 2,482 (970) 2, Plus FRS20 accrual 15,024 8,066 7,733 9,983 4,094 Plus stamp duty 78 Plus dividend proposed 3,638 Note 3 Being underlying operating profit/operating assets employed. 17,531 13,917 4,296 4,405 8,764 Norland Managed Services Annual Review

38 OFFICES Head Office Norland Managed Services Ltd City Bridge House 57 Southwark Street London SE1 1RU Telephone: Bristol Norland Managed Services Ltd 130 Aztec Aztec West Bristol BS32 4UB Telephone: Cardiff Norland Managed Services Ltd Regus House Malthouse Avenue Cardiff Gate Business Park Cardiff CF23 8RU Telephone: Dublin Norland Managed Services (Ireland) Ltd 118 Lower Baggot Street Dublin 2 Telephone: (0) Leeds Norland Managed Services Ltd Unit 1, Cliffe Park Bruntcliffe Road Morley Leeds LS27 ORY Telephone: Luton Norland Managed Services Ltd 725 Capability Green Luton LU1 3LU Telephone: Manchester Norland Managed Services Ltd North West Business Unit Trafford Plaza Seymour Grove Old Trafford Manchester M16 OLD Telephone: Midlands Norland Managed Services Ltd Coleshill House 1 Station Road Coleshill B46 1HT Telephone: North East Norland Managed Services Ltd Unit 1, Suite 8 Meadowfield Court Meadowfield Estate Ponteland Northumberland NE20 9SE Telephone: Scotland Norland Managed Services Ltd Suite 3G, International House Hamilton International Technology Park Stanley Boulevard High Blantyre G72 0BN Telephone: South West Norland Managed Services Ltd Swan House Northcroft Lane Newbury Berkshire RG14 1BN Telephone: West London Norland Managed Services Ltd West London Business Unit 115 Whitby Road Slough Berkshire SL1 3DR Telephone: Norland Managed Services Annual Review

39 GLOSSARY BC Business Continuity CAFM Computer Aided Facilities Management CDM Construction, Design & Management CE360 Norland s range of services for critical environments CERM Critical Environment Risk Management CES Norland s Critical Environment Services capability CRAC Computer Room Air Conditioning CIBSE Chartered Institute of Building Services Engineers CS Norland s Corporate Services capability DR Disaster Recovery EMEA Europe, Middle East and Africa FM Facilities Management H&V Heating & Ventilation HVAC Heating, Ventilation and Air Conditioning ICT Information and Communications Technology ILM Institute of Leadership & Management M&E Mechanical and Electrical PPM Planned Preventative Maintenance QHSE Quality, Health, Safety and Environment RoSPA Royal Society for the Prevention of Accidents TUPE Transfer of Undertakings (Protection of Employment) UKAS United Kingdom Accreditation Service UKS Norland s UK Services capability Totally Chlorine Free ISO14001 Fully recyclable 50% recycled 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. The pulp used in this product is bleached using a Totally Chlorine Free (TCF) process. 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. Designed by Benjamin Rowntree Design Norland Managed Services Annual Review

40 EXCEPTIONAL SERVICE, EXCEPTIONAL PEOPLE... Norland Managed Services Limited City Bridge House 57 Southwark Street London SE1 1RU T: Company number: