Operational Performance
The Group has produced a further strong overall
performance. Within Transport, both Road and Rail performed well. Management
& Industry also performed well, especially in the second half of the year.
With a change in the mix of business towards longer term contracts, Property
Services performed below our expectations, particularly in the second
half, where the business was impacted by higher business development and
restructuring costs. International performed well, with record results
in Europe and North America, and Asia Pacific returning to profit in the
second half. The contribution from the share of joint ventures rose significantly,
benefiting from Connect, our PFI roads business, and from a first contribution
from the facilities management contract for Telkom SA Limited, which commenced
in August 2000.
In addition, we have benefited from the first full year results from the
acquisition of Lambert Smith Hampton ('LSH') in July 1999 and the United
States based Atkins Benham Group in January 2000, both of which performed
above our expectations at the time of acquisition.
Further information on the Group's overall financial performance and that
of each business stream is given in the Financial Review.
The year under review has seen the Group achieve a number of objectives:
- We have demonstrated a greater ability to win national contracts
and leverage customers and services across the Group.
- The focus on strengthening and expanding our 'cerebral' position
in the outsourcing and support services market is continuing to deliver
results.
- We have delivered a range of solutions underpinned by technology
and the management of change.
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Providing facilities management services on 8000 sites for Telkom SA Limited.
Contract wins include:
- A 10-year educational services partnership with the London Borough
of Southwark.
- A 3-year contract at GCHQ in support of the New Accommodation Project.
- A 10-year outsourcing contract, in joint venture with Rebhold in
Johannesburg, for Telkom SA Limited for over 8,000 properties, involving
the transfer of some 1,460 staff.
- Since the year end we have secured a three-year partnering contract
with Hampshire County Council for support to their Transport programme,
a further Managing Agent contract with Highways Agency for trunk roads
in East Anglia, and a five-year term highway maintenance contract for
Bradford Metropolitan District Council.
Of our total staff, 62% (2000: 58%) are now involved in outsourcing and support services.