Annual review 2010-2011 Back to home page Back to home page

Keeping our balance

The financial year ended 30 April 2011 saw a very strong financial result delivered in a period in which our UK and Europe regions have once again faced challenging trading conditions. However, in six of our seven regions, consolidated revenue has increased over the prior year, but the market contraction in the UK, our largest market, has caused a slight decline in overall margins. Cash generation has once again been strong.

Basis of preparation

The financial results set out on pages 33 to 40 are extracted from accounts prepared under International Financial Reporting Standards. Prudent accounting policies continue to be applied on a basis consistent with prior years.

Revenue and profit

Our primary revenue measure, net revenue, was £204.3m (2010: £191.6m), and our gross revenue (which includes subcontract revenue) was £236.5m. The global composition of our revenue continued to develop during the year, with net revenue generated outside of the UK increasing by 22 percent over the prior year to £96.8m (2010: £79.5m), and accounting for 47 percent of our total revenue. Adjusted EBITA of £18.7m compares with £20.1m in the prior year. The decline reflects the impact of the reduction in UK revenue over the last two years and a resultant fall in UK operating margin. Both net revenue and EBITA improved over the prior year in the Americas, Africa, Middle East and Asia. Revenues in Europe and Australia also increased, with a slight decline in EBITA over the prior year.

Exceptional items

The IFRS2 charge in respect of a substantial three year share scheme established in May 2008 which granted share awards to approximately 200 senior managers through our global business is reported as an exceptional charge.


Adjusted taxation charge for the year was £5.9m (2010: £6.3m) representing an effective rate of 31.9 percent (2010: 32.2 percent). This is greater than the UK statutory rate for the period due to disallowable expenses and to the global nature of our business which results in taxation arising in countries such as the US and Germany which have higher corporate tax rates than the UK.


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